First Australian MMJ Company Goes Public

204Australia is now getting its first publicly traded marijuana company.

The medical cannabis company Phytotech Medical, based in Perth, Western Australia, is coming up with an initial public offering (IPO). With this, the company is aiming for AUD 5 M (USD 4.2 M).

Phytotech intends to develop a disposable marijuana-inhalation device, and to sell medical cannabis in several other countries. Its plans involve growing medical-grade marijuana in Israel, which is the only country that allows the exporting of the plant. The company will then sell its products in Europe, the US, and Canada.

The initial offer consists of 25 million shares at AUD 0.20 per unit, which is the minimum allowed in the Australian Securities Exchange.

The company has generated strong interest. So far, investors have sought a total of AUD 15 M in shares. Some interested entities come from as far away as the US and Russia. According to Reuters, this will likely allow Phytotech to close the offering earlier than anticipated.

With this move, Phytotech is getting ahead of the possible legal changes regarding marijuana in Australia. Currently, Australia bans cultivation and sales of the plant, but there are already marijuana grow trials in some parts of the country. The parliament has also been presented with a measure to allow MMJ sales.

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