Canntab Therapeutics Limited (CSE:PILL.CN) (OTCMKTS:CTABF) has received a cultivation licence from Health Canada in a major milestone for the cannabis company.
The licence allows Canntab to cultivate industrial hemp. Canntab intends to use the licence to secure a large amount of hemp biomass that it will use to extract cannabidiol (CBD) to manufacture cannabis hard pills.
Canntab shares gained 10% on Tuesday morning at C$0.77 on the Canadian Securities Exchange, and at US$0.57 on OTC markets.
READ: Canntab Therapeutics edges closer to revenue generation after FSD Pharma granted sales license
In addition, the Toronto-based company secured two properties in Saskatchewan and Ontario where it plans to grow and cultivate hemp. The properties have a combined total capacity of 560 acres for Canntab to cultivate high-quality hemp. In addition to extracting CBD, Canntab will also conduct research on high CBD hemp varieties as a complement to its plan of manufacturing CBD gel capsules.
Canntab CEO Jeff Renwick called the news “another important milestone” for the company.
“We have now ensured a security of raw materials that we need for not only our oil filled gel capsules but ultimately our hard pill dosage forms," he said in a statemnt. "We also intend to apply for a Cannabis Drug License that will enable Canntab to conduct further research into making medical claims and develop and manufacture pharmaceutical grade cannabis derived dosage forms in a GMP environment.”
Canntab also provided an update on its application to obtain a cannabis processing and sales licence from Health Canada for its Markham, Ontario facility. Once it receives its processing licence, Canntab intends to leverage both its Markham facility and its Coburg, Ontario facility for ongoing research and development, manufacturing and distribution through a network in Canada, Australia and Mexico.
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