The Cann Group Ltd (ASX: CAN) share price surged 5% higher in early trade after the medicinal cannabis company provided an important manufacturing licence update.
What did the Cann Group announce this morning?
Cann Group announced that the Federal Department of Health's Office of Drug Control (ODC) yesterday approved manufacturing licences for the company's existing northern and southern medicinal cannabis facilities in Melbourne.
According to the release, the licences relate to the manufacturing, packaging, storage, transport and disposal of medicinal cannabis in the final dose and intermediate forms.
Cann Group management also said that appropriate permits will be required in relation to the undertaking of specific activities under the manufacturing licences in question.
Cann Group now holds all cultivation, production and manufacture licences under the Narcotics Drugs Act, along with import and export licences under the Customs Act, putting the Aussie cannabis company in a strong position for further share price growth.
Cann Group CEO, Peter Crock, said: "Securing our ODC manufacturing licences is an important milestone that supports our fully integrated business model strategy. The ability to undertake these activities at both our Northern and Southern facilities gives us considerable flexibility as we continue to progress the development of our new state-of-the-art cultivation facility near Mildura."
Mr Crock said the licences will complement the manufacturing arrangements in place with IDT Australia Limited (ASX: IDT), which was granted its ODC manufacturing licence in May.
How has the Cann Group share price performed in 2019?
Following the Cann Group share price's early surge, the company's share price is currently trading at $2.24 per share (at time of writing) and now boasts a market cap of $327 million.
The Cann Group share price has climbed 15% higher so far this year as the company has continued to expand following it receiving Australia's first medicinal cannabis cultivation licence back in March 2017.
Since that time, the Cann Group share price has surged an astonishing 329% higher to be a leader in the ASX-listed cannabis stocks, with one of Canada's largest listed medicinal cannabis companies, Aurora Cannabis Inc, remaining a cornerstone investor with a 22.9% shareholding.
