The Cann Global Ltd (ASX: CGB) share price has been a big mover on the Australian share market on Thursday.
The cannabis company's shares are up 16% to 2.9 cents in afternoon trade following the release of a positive update.
What did Cann Global announce?
This morning the company announced that its T12 Food business has become an official supplier to retail giant Costco in Australia.
According to the release, the T12 Food business has secured its first purchase order of 6900 bottles from Costco Australia for its high demand VitaHemp certified organic premium hemp oil daily capsules. This remains subject to delivery and acceptance.
Another positive is that management revealed that it is optimistic that deals with Costco for other T12 products will soon follow.
Cann Global's Food division corporate head, Eli Levy, appeared to be very pleased with the order. Levy said, "This is a major step towards building a strong relationship with the global wholesaler who currently have 11 locations Australia and a 12th to open soon in Perth. Costco's member first policy and high quality ethos will be a perfect fit for T12's business model which includes Australia and Asia."
Executive chairperson of Cann Global, Pnina Feldman, echoed this sentiment.
Feldman said: "We are very excited to receive this first order from Costco, one of Australia's largest Food Retailers, and is proof of the hard work that has gone into producing our high quality and very nutritious products which we believe will continue to set the standard for this industry in Australia. Our hemp seed oil capsules, developed by our dedicated and innovative management team led by the Edwards brothers, are a natural and plant-based alternative to fish oil capsules without the fishy after taste. We hope to see this and all our T12 products and brands on many Australian tables in the years to come and distributed across Asia."
Also on the move in the cannabis industry on Thursday have been the Elixinol Global Ltd (ASX: EXL) share price with a 4.5% decline following the release of its half year results, and the MGC Pharmaceuticals Ltd (ASX: MXC) share price which is up 5%. This morning MGC released its prospectus to raise $1 million at 4 cents per share.
