AusCann Group Holdings Ltd (ASX:AC8) through its 50:50 joint venture in Chile, DayaCann, has secured its second cultivation licence for its second medical cannabis crop.
This is the only licence granted in Chile to cultivate medical cannabis and allows the joint venture to commence cultivation activities.
The DayaCann joint venture will commence planting crops immediately at its licensed 30-hectare facility south of Santiago, Chile.
The licence follows the successful harvest of 400 plants earlier this year that provided a range of chemotypes to be used in initial trial formulations.
DayaCann is currently the only licensed producer in Chile, giving it a key competitive advantage in a growing market.
Elaine Darby, managing director, commented
“The regulatory landscape and market for cannabinoid medications continues to evolve and grow.
“Chile is one of the regions at the forefront of change and access to cannabis medications for patients in need is advancing rapidly in the region.
“This licence allows us to commence growing our second crop in the region, building on our position in the market and expanding our supply chain as AusCann becomes a fully integrated medical cannabis company that will service both the Australian and Latin American markets.”
Looking ahead to local export markets
Under current regulations, Chile allows the export of products, once registered as medicines.
DayaCann is well positioned to leverage the growing opportunity across Latin America, where medical cannabis is currently legal in a number of countries including Brazil, Argentina, Peru, Columbia, Uruguay, Panama, Puerto Rico and Mexico.
AusCann anticipates the planting of the next crop to commence before year-end, with the harvest to be undertaken during the first half of 2018.