West Australian medicinal cannabis company Cannaponics has announced plans to team up with a Mauritius-headquartered medical supplier to develop a pharmaceutical manufacturing facility, including options to export its products and investigate new uses for hemp.
The vertically integrated company founded by Rod Zakostelsky has signed a Memorandum of Understanding (MOU) with Avacare Health's Australian subsidiary to develop the facility at a Cannaponics-owned site in Collie, WA.
The site sits next to Cannaponics' already established medicinal cannabis facility, with Zakostelsky's company to provide the project's land, power, water and security, subject to regulatory approval.
Both companies have also agreed to investigate the research and development of hemp as a replacement for petroleum-based plastics and textiles needed to manufacture PPE (personal protective equipment) and various medical devices.
The MoU also gives Avacare the opportunity to distribute Cannaponics' products around the world. With a distribution network for pharmaceuticals, medical disposables, consumer health and medical equipment in Australia and Asia, Avacare's s international corporate head office in South Africa generates $345 million in revenues annually.
"Cannaponics partnership with Avacare – a global and well-respected medical company – is an important milestone for our company, as we continue fund raising with the aim of launching a well-funded IPO on the Australian Securities Exchange in 2023," Cannaponics managing director Rod Zakostelsky said.
"The Avacare partnership provides a global network in order for Cannaponics to distribute its future products."
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Avacare Health Australia director Raj Singh highlighted his company's global experience in providing high-quality products in a range of medical goods, with its operations including a large medicinal cannabis research and development facility in Cape Town, South Africa.
"We are delighted to be able to partner with Cannaponics and look forward to building many more strong working partnerships in the medical supply community, in Western Australia," Singh said.
"WA is ideally positioned to develop its medical industry and supply products throughout Asia and Australia."
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