Cannabis producer signs wholesale deal with Priceline owner

Cannabis producer signs wholesale deal with Priceline owner

LISTED cannabinoid medicines producer, AusCann (ASX: AC8), has signed a wholesale deal with Australian Pharmaceutical Industries Limited (API) to distribute its medicine in Australia.

This deal will open AusCann up to API's nationwide pharmacy network, Priceline, which has flagged a fall in first half profits of nine per cent.

As part of the deal, AusCann will distribute imported cannabinoid medicines from its Canadian partner, Canopy Growth Corporation, ahead of establishing its own local supply of medications.

AusCann is also working closely with a company called Tasmanian Alkaloids in establishing its cultivation and manufacturing operations in Tasmania, with the first crop to be planted in 2018.

The listed cannabis company says it will also begin an outreach program to educate the market.

AusCann's Medical Outreach Program aims to provide education and support to Australian doctors, to drive awareness and knowledge of the therapeutic benefits and uses of medical cannabis.

Elaine Darby, managing director of AusCann, says the partnership with API will help the company reach a wide market in Australia.

"Establishing a relationship with a leading wholesale distributor in the industry provides AusCann with an excellent partner for the distribution of our medications and is further evidence of the growing market and validity of what we're doing in Australia," says Darby.

"This relationship is in addition to our strategic partnership with Tasmanian Alkaloids, who we are working closely with to establish our growing and manufacturing operations.

"It further builds on our Australian supply chain and firmly positions AusCann as leaders in the local industry."

AusCann made waves in the medicinal marijuana industry last year when the company emerged from a trading halt to announce it raised $12 million in a share placement with new institutional investors.

The placement received strong interest from both domestic and global companies.

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

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Does your pay structure answer today's challenges?
Partner Content
If you are not reassessing how your organisation remunerates and rewards employees as a...
Aon
Advertisement

Related Stories

Shine launches class action against QSuper

Shine launches class action against QSuper

Members of QSuper have filed a class action against the super fund ...

Nic Blair's digital healthcare startup Midnight Health scores $4m investment from nib

Nic Blair's digital healthcare startup Midnight Health scores $4m investment from nib

Health insurer nib (ASX: NHF) has put its weight behind healthcare ...

Reprieve for EML Payments as Irish regulators allow new customers and programs

Reprieve for EML Payments as Irish regulators allow new customers and programs

The dreaded 'Bank of Ireland Update' has become an ominous ...

GURNER, Qualitas raise $1.2 billion for rent-to-build platform

GURNER, Qualitas raise $1.2 billion for rent-to-build platform

Developer GURNER and alternative real estate investment manager Qua...