The Cann Group Ltd (ASX: CAN) share price has returned from its trading halt and rocketed higher.
In morning trade the cannabis company’s shares are up 25% to $1.26.
Why is the Cann Group share price rocketing higher on Tuesday?
Investors have been scrambling to buy Cann Group’s shares this morning after the release of a joint announcement with its manufacturing partner IDT Australia Limited (ASX: IDT).
According to the release, GMP extraction activities are underway for the first batches of medicinal cannabis resin.
This extracted resin will be used as an Active Pharmaceutical Ingredient (API) in formulation and packaging activities at IDT to produce GMP medicinal cannabis oil products. It will also be made available for purchase as an API.
Once formulated and packed, the cannabis oil products will undergo stability testing to support a targeted commercial release in late March of this year. Management notes that this is a key step in allowing finished products to be produced and released into the market at scale.
The release explains that the extracted resin will be formulated into a full range of GMP medicinal cannabis finished dosage form products. This includes formulations featuring high THC, high CBD and balanced formulations.
These products will be formulated and packed by IDT and made available via the Special Access Scheme (SAS) to Australian prescribers and patients. They will also be positioned for export to markets overseas.
Cann Group’s CEO, Peter Crock, believes this is a milestone for the company.
He said: “This facilitates the manufacture of finished product formulations and puts us a step closer to launching our own locally sourced and produced range of medicinal cannabis treatments to satisfy both domestic demand and to help develop valuable export pathways.”
Also on the rise this morning is the MGC Pharmaceuticals Ltd (ASX: MXC) share price. Its shares are up 6% following the announcement of the launch of a new cannabis product line in the ANZ market.
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