Shares of Cann Group Limited (ASX: CAN), Auscann Group Holdings Ltd (ASX: AC8), Creso Pharma Ltd (ASX: CPH), Stemcell United Ltd (ASX: SCU) and MMJ Phytotech Ltd (ASX: MMJ) have bounced higher today following the Australian Government’s export approval.
What happened?
Shares of Australia’s major publicly listed medical cannabis companies rallied on Thursday following a decision by the Australian Federal Government Minister Greg Hunt to approve the export of cannabis products overseas.
“We are making these changes because the expanding domestic medicinal cannabis products industry is facing increasing competition from imports,” Minister Hunt said.
The local industry appears to agree.
“…this decision will help ensure Australians benefit from a stronger, economically viable industry that is incentivised to develop world leading medicinal cannabis products to which they will have access,” Peter Crock, CEO of the $350 million Cann Group, said.
“The Federal Government is playing an important leadership role in helping to facilitate easier access for Australian patients and we now see an opportunity for those requirements to be further harmonised at a state level.”
Cann Group is currently developing a cultivation and manufacturing facility and has an agreement with the $6 billion Canadian company, Aurora Cannabis. It recently commissioned a facility north of Melbourne.
Pot Stocks Grow Like Weeds
Cannabis shares throughout the Western world have been a hot topic in recent years, with a push in states throughout the USA and Canada to legalise the drug.
Here in Australia, some commentators and medical experts have called to expedite access to the drug for patients suffering from certain diseases, some of which are terminal and significantly painful.
Minister Hunt said local patients will get priority access to locally produced products.
“It will be a condition of any licence authorising export that medicinal cannabis products be made available, when and if required, to Australian patients first,” Minister Hunt said.
Doctors can apply to become an authorised prescriber and legally distribute medicinal cannabis drugs to patients.
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