Sharechat Logo

Cannasouth to receive Callaghan funding

Wednesday 3rd July 2019

Text too small?

Medicinal cannabis company Cannasouth will receive funding from Callaghan Innovation to support two of its research programmes.

The government agency will contribute up to $347,008 to the projects during the next three years, conditional on Cannasouth spending up to $566,172 to match the projects' funding. The grant is subject to completion of the formal contract.

Chief Operating Officer Nic Foreman says the research programmes are in the areas of neuropathic pain/drug discovery, and drug delivery systems and optimisation technology. The proposed funding is essential for the company’s technical and commercialisation efforts.

“Securing capital to ensure we make timely progress in research is key to the commercial success of our therapeutic cannabinoids products,” said Foreman.

The announcement comes after the company listed earlier this month after selling $10 million worth of shares at 50 cents each. It was the first share float on the New Zealand Stock Exchange in two years.

The stock first traded at 51 cents but last traded at 29 cents.

The latest funding is additional to three grants Cannasouth and its partners have already received for research already underway or already completed.

Foreman said that, with the funding in place, they will be able to apply to the Ministry of Health for the necessary licences to conduct the research and development projects specified in the grant application.

Plant material from Cannasouth’s Waikato-based cultivation facility will be used in its Waikato Innovation Park laboratory to extract cannabinoid compounds for the proposed projects. The first harvest of plants growing in the facility is expected in the next two months, it said.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Gold Report 16th July 2019
NZ dollar rises after CPI meets expectations; US dollar weakens
Yili's Westland takeover gets OIO approval
Govt eyes 2025 for farm-level emissions pricing
Govt won't "die in a ditch" for 100% renewable target
NZ 2Q CPI +0.6% on quarter, +1.7% on year
16th July 2019 Morning Report
Suspect company faces liquidation after director dies
NZ dollar holds gains; focus on domestic inflation data
MARKET CLOSE: NZ shares slip as fears over slowing Chinese growth weigh; AMP slumps

IRG See IRG research reports