Another Australian Cannabis Firm Licensed

382-pxKlq.AuSt.55Australia’s most recent pot stock is now one of the first in the country to be licensed to grow medical marijuana.

MGC Pharmaceuticals, which has recently started trading on the ASX, has secured two licenses to grow, process, and import cannabis from Slovenia. The operations have to be off-shore because cannabis production is still illegal in Australia.

The Slovenian Government has legalized the practice, and together with the region’s Ministry of Agriculture and Ministry of Hemp and Poppy Control, it granted MGC Pharmaceuticals its licenses. These licenses cover the trade of cannabidiol (CDB), a marijuana compound that has no psychotropic properties. CBD prices range from USD 50,000 to USD 70,000 per kilogram in the global market.

MGC Pharmaceuticals managing director Nativ Segev described the licensing as “a key milestone.” The company has recently made major moves for its cannabis operations, including a reverse takeover deal with gold explorer Erin Resources, hoping to transform it into a cannabinoid resin producer.

While MGC is not the first marijuana company to be listed on the ASX, it is one of the few to secure licenses. Another Australian marijuana producer, AusCann, is also licensed to grow and export cannabis on Norfolk Island. But while AusCann targets pain relief, MGC intends to enter the cosmetic industry.

PhytoTech Medical, the first ASX-listed marijuana firm, meanwhile hopes to manufacture cannabis vaporizers. The company’s January debut doubled its share price, but the stock plummeted when founder Ross Smith posted a controversial rant on social media. Now, PhytoTech is working to merge with MMJ Biosciences, a Canadian growr, in a $15.5 million deal.

Another ASX-listed company, Capital Mining, is also about to go into the marijuana industry by acquiring a 24 percent stake in Broken Coast Cannabis, a Canadian firm.

Australian marijuana companies are optimistic about its opening up to cannabis. Although therapeutic use of the drug is still illegal in the country, the ASX has started listing marijuana firms earlier this year. Prime Minister Tony Abbott also expressed his support for medical cannabis legislation.

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