Listed medicinal cannabis company Cann Group (ASX: CAN) has signed an agreement to build Australia's largest state-of-the-art medicinal cannabis operation.
The cannabis cultivation facility will see Cann Group investing $100 million in the 37,000 square meter facility in the Melbourne Airport precinct.
Australia Pacific Airports Melbourne (APAM) will undertake the primary build of the site which is being designed by Aurora Larssen Projects, a specialist greenhouse engineering consultancy group that provides technical consulting to the greenhouse industry worldwide.
Cann will complete the fit-out and technology deployment required at the facility that, when completed, will employ 170 staff.
Cann Group CEO Peter Crock says the support of APAM will put the company into a better position than other options previously proposed by Cann.
"The site is ideally suited to our needs and the heads of agreement represents an important step that allows us to proceed with the final design," says Crock.
"APAM's contribution to the construction of these facilities will enable Cann to invest additional capital in increased cultivation capacity; expanded development and production capabilities, while also allowing for further future expansion."
Cann will be permitted to operate cultivation, manufacturing, warehousing and distribution of medicinal cannabis, remaining responsible for all necessary government approvals required.
Shares in the medicinal cannabis grower and product manufacturer had jumped 6.8 per cent to $2.98 by 1430 AEST on Wednesday after the lease agreement was announced.
Business News Australia
Get our daily business news
Sign up to our free email news updates.