NEW ZEALAND: In a first for New Zealand, medicinal cannabis research company Cannasouth has announced it will make an application to list its shares on the NZX Main Board through an initial public offering (IPO) during the second calendar quarter of 2019.
Based in the Waikato region, Cannasouth has received a licence from the Ministry of Health to carry out medicinal cannabis research in New Zealand. The licence also enables the company to apply for an import license to import cannabis products for research.
The granting of the license represents a major milestone for Cannasouth, whose management team has been involved in the cultivation and research of industrial hemp, and now medicinal cannabis, since 2002.
Cannasouth’s director of operations Mark Lucas says the company’s IPO will open more doors for future research into the development of advanced cannabinoid medicines and health-related products. “The medicinal cannabis research industry is still very much in its early stages – we’ve only scratched the surface of what is possible,” he says.
Cannasouth is currently planning the construction of GMP (good manufacturing processes) cultivation and production facilities in Waikato, in anticipation of legislation changes that will allow the manufacture and sale of medicinal cannabis in New Zealand.
The announcement of Cannasouth’s IPO comes after securing first round capital investment from the CMP Growth Capital Fund, a fund that provides growth capital to emerging New Zealand businesses. It is anticipated that a further, modest pre-IPO round of capital raising will be undertaken before the end of this year.
Sean Joyce, principal of CM Partners, which manages the CMP Growth Capital Fund, says Cannasouth has all of the intellectual capital and attributes needed to be a leader in the medicinal cannabis industry, “There is huge potential in this exciting emerging sector, and Cannasouth will be a welcome addition to the New Zealand capital markets when it lists next year.”