Aussies and canucks continue to make headlines on the medical cannabis scene – this time in related to Cann Group Limited (ASX: CAN) and Aurora Cannabis (TSX: ACB)
It appears rumours are circulating and have been reported in the media that Cann Group Limited may be a takeover target of Aurora Cannabis, one of Canada’s major medical marijuana players.
Addressing these rumours, Cann Group’s official statement said in part:
“Cann Group advises that it has not received any proposal for a takeover bid from Aurora. The Company has recently had very preliminary and confidential discussions with Aurora in relation to a potential transaction. However, there is no certainty that any formal offer or transaction will eventuate. The Cann Group Board will properly consider any offer or proposal it may receive having regard to all the alternatives available to the company.”
This rumour aside, there’s definitely a Canadian cannabis invasion of sorts going on in the land down under. Last week we mentioned AusCann and Canopy Growth were strengthening their business bonds. Separately, Canopy Growth announced it would be establishing its Asia-Pacific headquarters, research and development centre in the Australian state of Victoria. We also reported Canada’s Aphria announced its first medical cannabis shipment to Althea Company had been delivered.
For what is currently such a small market due to restrictions and regulation, we’re certainly getting a lot of attention from our Canadian friends.
In other news from Cann Group, the company recently published its March quarterly activities report. Items of note include its receipt of two new licences and corresponding permits from the Office of Drug Control (ODC), allowing continuation of its cultivation and production of cannabis for research and medicinal purposes.
“As well as scaling up its production during 2018, the licences will allow the company to continue its research and work with partners including La Trobe University, Aurora Cannabis, Agriculture Victoria, CSIRO and Anandia Labs,” stated the company. There we go, the Canadian connection again (and Anandia Labs is Canada-based as well).
In March, Cann said it has also received export permits from Health Canada, enabling it to begin the import of genetics and cannabis oils from its Canadian partners.
With regard to the cannabis oils, Cann Group will import four products developed by Aurora Cannabis that will be made available to medical practitioners in Australia for prescriptions under the Special Access Scheme or Authorised Prescriber Scheme.
That Canada is featuring so heavily in Australian cannabusiness is really no surprise – they are much further down the path than us, so it makes sense to make use of that knowledge and their resources – and they obviously see the huge potential here.