Cann Group Receives Grant For Cannabis Facility

Cann Group Limited has received a grant from the Victorian Government under the Regional Jobs Fund. 

Cann Group Limited (ASX: CAN) has procured a grant from the Victorian Government under the Regional Jobs Fund. The grant will award Cann Group up to AUS$1.975 million.

The Australian company is building a cannabis facility in regional Victoria to cultivate and produce medicinal cannabis for Australian patients. Upon its completion, the facility is likely to provide up to 150 new permanent jobs. The grant will contribute to electricity upgrades at the Mildura-based facility.

Mildura has a rich agricultural and horticultural heritage. Its location has ideal "high light intensity" weather during days of sunshine; an advantageous climate for cannabis cultivation.

"Our plans to develop commercial scale production capacity at Mildura are central to the Company's strategy of being a fully integrated medicinal cannabis company that can service both Australian domestic patients and access valuable overseas markets."Cann Group CEO, Peter Crock

Jaclyn Symes, Victorian Minister of Agriculture and Regional Development, has confirmed the grant. Symes commented on social media stating that the grant will further supports job creation in regional Victoria. Furthermore, it marks the government's "commitment to expanding the states medicinal cannabis sector."

Upon completion, the facility is likely to create AUS$191 million for the Mildura region. This aligns with the government's Medical Cannabis Industry Development Strategy. The Victorian Government's has set a sizeable goal to supply half of Australia's medical cannabis by 2028.

Symes continues that the government's investment in Cann Group "puts Victoria at the forefront of medicine and the creation of a new local industry."

As it stands, the facility's construction has contributed to 133 jobs for locals, with more job openings becoming available upon its completion. The facility has a total capacity to produce 70,000kg of dried flower per year. Cann Group had originally planned to complete the facility in a single-stage development. This, however, was revised to be built in stages instead.

Once the first stage is due for completion in late 2020 – pending licensing and regulatory approvals- the facility will be able to produce 12,500kg of dried flower per year. COVID-19, however, may alter the commissioning date. The 2nd stage of completion will be able to increase production to 25,000kg per year.

In 2017, Cann Group became the first Australian company to obtain a Cannabis Research Licence from the Federal Government. This was shortly followed by receiving Australia's first Medicinal Cannabis Research Licence.

Cann Group's vision is to be a front-runner in the development and supply of medicinal cannabis products.

For more information about Cann Group, please click here.

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Taylor Ridewood
Taylor Ridewood

Taylor is a Sydney-based writer with a background in psychology and professional writing. She has a keen interest in the benefits of medicinal cannabis and enjoys researching the multi-faceted effects of cannabis on the body and mind.

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