The Cann Group Ltd (ASX: CAN) share price is rocketing on Thursday.
This comes after the cannabis company announced a positive update regarding its Mildura facility.
At the time of writing, Cann shares are fetching at 27.5 cents, up 19.57%.
Cann secures GMP licence
Investors are bidding up the Cann share price following the company's approval to manufacture active pharmaceutical ingredients (API).
According to its release, Cann advised it has received a GMP manufacturing licence from the Therapeutic Goods Administration (TGA).
This allows Cann to produce API and hard capsules and conduct GMP-approved activities at its existing chemistry and microbiology laboratories.
The milestone certification could lead to an expanded sales base as the company can now perform in-house tests to meet domestic and overseas regulatory requirements.
Cann noted that obtaining the GMP licence enables medicinal cannabis products to be sold in Australia and for export markets. The latter however is subject to further approvals.
Cann CEO, Peter Crock touched on the achievement, saying:
GMP licencing is the regulatory capstone of the Mildura facility, allowing us to cultivate, extract, manufacture, test, and supply finished products entirely in-house. With the licence in place, we can now add additional GMP capabilities in response to market demands.
About the Cann share price
Despite today's strong gains, the Cann share price is down 7% in 2022.
When looking further out, the company's shares are down 20% over the last 12 months.
Based on valuation metrics, Cann presides a market capitalisation of around $87.28 million.
