The Cann Group Ltd (ASX: CAN) share price could rise this morning after the company announced that the Victorian Government has taken delivery of the first Australian sourced and commercially grown cannabis resin for use by Australian patients.
What did Cann Group announce yesterday?
In its after-market update, the company said that the delivery represents the first supply of Australian patients of medicinal cannabis resin commercially grown and produced in Australia.
Cann Group entered into a supply contract last October with the Victorian Department of Health and Human Services (DHHS), through its Office of Medicinal Cannabis (OMC), for the supply of cannabis plant extract, or "resin".
The company said the cannabis resin has been extracted from dry cannabis flower produced at the Cann Group's undisclosed Southern Facility in Melbourne.
The company has an agreement with Agriculture Victoria to undertake the resin extraction process using a supercritical carbon dioxide extraction method to produce a whole plant extract, with the resin subsequently undergoing further development into a product suitable for patient use.
How has the Cann Group share price performed this year?
Cann Group is the first Australian company focused on breeding, cultivating and manufacturing medicinal cannabis for sale and use within Australia.
The company's largest shareholder is the Canadian-listed medicinal cannabis company, Aurora Cannabis Inc, which is one of the largest in Canada and holds a 22.9% stake in the Aussie manufacturer.
The company currently has a market cap of $300 million and has seen its share price climb 8% higher in 2019 but it's current $2.16 per share valuation remains a long way shy of its $3.82 52-week high recorded this time last year.
