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Cann Group share price on watch after quarterly results announced

The Cann Group Ltd (ASX: CAN) share price could trade heavily this morning after the medicinal cannabis company announced its latest quarterly activities to the market.

What did the Cann Group announce this morning?

In its latest quarterly release, Cann Group noted that it took delivery of the first Australian sourced and commercially grown cannabis resin for use by Australian patients.

According to management, the cannabis resin has been extracted from dry cannabis flower produced at Cann Group’s Southern Facility in Melbourne as part of the Company’s supply contract with the Victorian Department of Health and Human Services (DHHS).

Among the other highlights for Q4 2019, Cann Group took possession of the Mildura site, which has been secured as part of its planned third facility.

Cann Group management said the Mildura site is a state-of-the-art greenhouse for large-scale cultivation and production of medicinal cannabis.

Groundworks have since commenced at the site, in addition to remodelling of the existing manufacturing area. The first prefabricated elements required for the greenhouse structure have now been shipped by Cann’s supplier in the Netherlands.

Another key highlight from the company’s quarterly results was its April 2019 strategic investment in New Zealand (NZ)-based medicinal cannabis company, Pure Cann NZ Limited.

According to the release, Pure Cann is rapidly establishing itself as a leading player in the NZ market and is anticipating regulatory changes that will permit the cultivation and broader supply of its medicinal cannabis in NZ.

In late June, Aurora Cannabis received an import permit from Health Canada for cannabis cultivated by the Cann Group.

Cann Group has delivered material to its manufacturing partner, IDT Australia, for Good Manufacturing Practice (GMP) testing, labelling and packing before Cann exports this product.

The permit enables Cann to deliver the material for process validation purposes, with commercial terms of the supply to remain confidential.

What else has been happening for Cann Group?

The Cann Group share price has climbed 7.5% higher so far this year, in what has been an up-and-down year for the ASX medicinal cannabis company.

The Cann Group share price shot 5% higher last week after announcing that the Federal Department of Health’s Office of Drug Control (ODC) approved manufacturing licences for the company’s existing Northern and Southern medicinal cannabis facilities in Melbourne.

While the reaction might be more muted following the quarterly activities update, I’d still expect to see higher trading volume in Cann Group shares when the market opens.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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