ONE OF AUSTRALIA'S 'DOPE HOPES' MOVES CLOSER TO IPO

ONE OF AUSTRALIA'S 'DOPE HOPES' MOVES CLOSER TO IPO
QUEENSLAND Bauxite (ASX: QBL) is planning an independent ASX listing for its majority-owned cannabis producer, with QBL shareholders to be given preference to take up shares in the new IPO.

QBL acquired a 55 per cent stake in Australian unlisted company Medical Cannabis Limited (MCL) in March 2017, and since then there have been further announcements which have attracted investors into the stock.

The company announced that preference shares in the IPO will be given to shareholders in proportion to the number of shares being held in QBL and the length and time the shares have been held.

The company says a prospectus is being finalised but no date has been given for the MCL IPO.

"Because our company aims to be at the forefront of both Australian grown hemp seed foods as well as medical (cannabinoid) research and production, with the goal of bringing cash flow to the company in both of the above fields of endeavour, we anticipate an exciting Initial Public Offering
with sufficient funding and investment to enable the fulfilment of the company's ambitious goals," MCL director Andrew Kavasilas says.

Queensland Bauxite made the decision to acquire MCL after the decision last year by the Australian Government to approve cannabis cultivation for medical purposes.

Medicinal cannabis is used to treat severe pain, nausea and vomiting and can ease muscle spasticity and provides relief for patients suffering cancer, epilepsy, HIV and MS and there are now eight major players who are succeeding in the space.

Kavasilas is the founding director of MCL and is recognised as a pioneer in the industry, having co-ordinated and funded cannabis related projects for 18 years. He's also the secretary of the Australian Hemp Party.

"The sky is the limit with this. Medicinal cannabis is the new dot com industry of the 21st century," says Kavasilas.

"How much will this industry be worth in Australia? We could well be on a par with Netherlands and Israel (which already have a national medicinal cannabis program) so it has the potential to be a billion-dollar industry."

"We believe in the vast amazing opportunities currently being offered worldwide by developments in the cannabis and hemp industries and feel privileged through our investment to be part of this opportunity benefitting so many people throughout the world," says Queensland Bauxite
executive chairman Pnina Feldman.

"MCL through its experience, contacts, unique seed bank and licenses is in an excellent first mover position to take commercial advantage of these advancements," Feldman says.

Never miss a story: Sign up to Business News Australia's free news updates

Follow us on Twitter, Facebook, LinkedIn and Instagram

 

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

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

John McGrath calls for calm as real estate company forecasts rise in earnings for FY22

Despite recent trading conditions proving disruptive for the reside...

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...