Cann Group to build Australia's largest medicinal cannabis operation

Cann Group to build Australia's largest medicinal cannabis operation

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 Cannabis Index: A complete guide to cannabis stocks on the ASX

"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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 
Brother targets printer data security amid digital revolution in the office
Partner Content
The digital revolution may have changed the office forever, but the latest research sho...
Brother International Australia
Advertisement

Related Stories

Government deal to pass new IR laws leaves businesses shell-shocked

Government deal to pass new IR laws leaves businesses shell-shocked

An agreement with crossbenchers by the federal government to assure...

Gurner appoints former Australia Post, Latitude boss Fahour as new CEO

Gurner appoints former Australia Post, Latitude boss Fahour as new CEO

In a year when the Gurner Group has added $1.9 billion worth of tot...

Seven West Media CEO Warburton announces shock exit amid industry challenges

Seven West Media CEO Warburton announces shock exit amid industry challenges

Seasoned media executive James Warburton is poised to wrap up five ...

Most business owners are the world's best-kept secret

Most business owners are the world's best-kept secret

In a world teeming with talent, why do so many brilliant business o...