Perth-based medical cannabis company Cannaponics has signed an MoU with medical products supplier Avacare Health Australia, covering development of a new factory at Collie, supply of Cannaponics’ products, and R&D on hemp-based plastics and textiles.
According to an announcement from the company last week, it will build the new 2,000 square metre facility for processing cannabis flower next to a 3,600 square metre greenhouse currently under construction at Collie.
The greenhouse has been supported by a $2 million Collie Futures Industry Development Fund grant from the Western Australian government.
The MoU with the local subsidiary of Avacare – a South African-headquartered company with annual revenues of approximately $345 million – includes R&D on hemp materials “as a replacement for petroleum-based plastics and textiles” as well as “the opportunity for Avacare to distribute Cannaponics Ltd products around the world.”
Cannaponics’ managing director Rod Zakostelsky said the partnership, “is an important milestone for our company, as we continue fund raising with the aim of launching a well-funded IPO on the Australian Securities Exchange in 2023”.
“The Avacare partnership provides a global network in order for Cannaponics to distribute its future products.”
Cannaponics was established in 2018 and is a vertically integrated company, “cultivation, drying, extraction, and GMP manufacturing” of medical cannabis products.
Cannaponics to build processing factory, investigate hemp products under MoU with Avacare
