AusCann Group Holdings Limited told the ASX the agreement with Clifford Hallam Healthcare (CH2) to store and distribute AusCann’s pharmaceutical products was cost effective and extended AusCann’s distribution network in Australia.

“Under the terms of the supply agreement with CH2, products will be supplied to pharmacies by CH2 for AusCann, in full compliance with the regulations governing the supply of an unregistered medicine,” AusCann said.

It said the agreement was for 12 months, with an option to extend it.

“This agreement marks another step on AusCann’s path towards making the hard-shell capsules available for clinical evaluation and prescription to patients in Australia through the TGA (Therapeutic Goods Administration) special access scheme and authorised prescriber scheme during the first half of 2020,” AusCann said.

The deal replaced a heads of agreement AusCann signed in early 2018 with Australian Pharmaceutical Industries Limited.