Much to the relief of its shareholders, the Cann Group Ltd (ASX: CAN) share price is heading higher during trade on Friday.
In afternoon trade the medicinal cannabis company's shares are up 2% to $2.96 and look likely to bring their four-day losing streak to an end.
Why are its shares higher today?
This morning Cann Group announced that it has signed a memorandum of understanding (MOU) with Melbourne-based Under The Tree Biopharmaceuticals (UTT) for cannabis research.
According to the release, UTT will set up a laboratory at Cann's Northern facility in Melbourne and work towards developing analytical techniques with a view to providing analytical services to the medicinal cannabis industry in Australia.
The MOU will see UTT provide Cann Group with access to independent analytic services in quality control testing for its products. CEO Peter Crock believes this will provide the company with expertise in cannabis science research that will help it to stay at the forefront of the local industry.
Cann Group faces stiff competition in the industry from the likes of Auscann Group Holdings Ltd (ASX: AC8) and Hydroponics Company Ltd (ASX: THC). All three are aiming to become the market-leader in the fledgling industry.
