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Greenfern secures agreement to supply medicinal cannabis

Tuesday 28th June 2022

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Greenfern Industries Limited (GFI:NZX) is pleased to announce it has received an initial two-year binding offtake order for the purchase of their Taranaki-grown medicinal cannabis.

This product will be for use in an overseas medicinal market and depending on which chemotypes are supplied could be worth in excess of NZD1.6 million over the contract's duration. This comes just days after Greenfern’s previous market announcement that it has received the globally recognised Good Agriculture and Collection Practices (GACP) certification via global certifying body Control Union Medicinal Cannabis Standards (CUMCS).

“This is another great milestone for the company and its shareholders. As we go from strength to strength in what is very much a sunrise industry here in New Zealand, the progress that we are achieving is a testament to the solid foundations we have laid to date,” said Dan Casey, managing director of GFI.

As the company looks to raise new capital in the second half of 2022, the phase one cultivation facility will be utilised until the larger phase two facility comes online.

“It’s quite a strategy to not get too far ahead of ourselves by over capitalising on infrastructure before the markets are ready and the regulations are met, but at the same time you don’t want to miss opportunities as they present themselves. It’s a real balancing act,” said Casey

Greenfern is currently preparing a medicinal cannabis consignment for testing to meeting New Zealand minimum quality standards. Once this is completed the first batch will be ready for shipment.

This agreement shows a clear path to revenue for Greenfern’s cultivation business and from this the company will scale accordingly to meet overseas demand.

Greenfern’s Australian business, GFI Pharma, continues to acquire patients month on month through prescription medicine tincture sales. That, together with its hydroelectric power station in full swing with winter energy demands, the company is solidifying itself as a progressive and diverse cannabis company.

-ENDS-



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