The company was listed on the NZX in June 2019. It is based in Hamilton where it has established laboratories, research, and cultivation facilities for medicinal cannabis. It is looking to develop new cannabinoid therapeutics to support patient’s health outcomes and improve their quality of life.
Revenue for FY19 was $53,000, Research and Development and Administration costs were $2.24 million resulting in a Net Loss of $2.18 million. Total Equity was $11.6 million.
The shares are currently trading at $0.44 having listed at $0.40 cents and have traded through a range of $0.76 cents/$0.29 cents since listing. The CEO and COO each hold 26.7% of the shares.
In May 2020, the company raised $6 million by way of a share purchase plan. It has a market capitalisation of $54 million and 3000 shareholders. In December 2019, the Government released the medicinal cannabis regulations.
The company intends to apply for a licence to cultivate medicinal cannabis crops commercially. It also intends to commission its commercial growing and processing facility and begin the processing of the first commercial crop.
This will be followed by the release of a range of cannabinoid formulated medicinal products and the development of a sales and marketing team to take products to market.
Highlights since listing on the NZX
— Secured significant Research & Development funding from Callaghan Innovation
for studies into neuropathic pain/drug discovery, and drug delivery system/
— Entered into a 50:50 cultivation joint venture (Cannasouth Cultivation Limited),
secured resource consent and commenced construction of a world-class,
scalable, energy-efficient controlled atmosphere greenhouse cultivation facility;
— Successfully harvested the first three crops of medicinal research cannabis
from the Company’s specialist growing facility in the Waikato;
— Expanded with the acquisition of a 60% stake in Midwest Pharmaceutics NZ Limited. Midwest is a Hastings-based GMP (Good Manufacturing Practice) compliant manufacturing and packing facility specialising in the manufacture, re-packing and
wholesale supply of pharmaceutical raw materials and the manufacture of dietary
supplements and herbal extracts.
Focus for next 12 months
— Registration and launch of Cannasouth’s first imported white label medicinal
— Expansion of Midwest Pharmaceutics’ existing operating capacity to meet current strong demand from the pharmaceutical, health and wellness supplement sectors and increase existing revenue;
— Complete manufacturing layout changes at Midwest and install cannabinoid
processing equipment to commence offering toll/contract manufacturing services
to the industry;
— Secure new medicinal cannabis licenses and ready facilities for the warehousing
and distribution of Cannasouth’s first products;
— Complete construction and commissioning of Cannasouth Cultivation’s growing facilities and commence production and sales of medicinal cannabis raw flower;
— Progression of next generation products and supporting clinical research for
commercialisation within the Cannasouth Group.
The Board comprises an Independent Chair and Independent Director. The Chair, Tony Ho is a professionalDirector of both NZX and ASX listed companies. He was previously a Director of Yates New Zealand Ltd.
The Independent Director Conor English is Chair of Agribusiness New Zealand Ltd and NZX listed QEX Logistics Ltd. He is also a Director of GMP Pharmaceuticals Ltd.
The company will hold its Annual Shareholders Meeting 11.00am Thursday 11 June 2020. Due to the Covid-19 restrictions this will be a virtual meeting.
You can join the meeting at https://www.virtualmeeting.co.nz/agm/cbd20/register
Source: NZ Shareholders Association
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