MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF), which specializes in research-driven cannabis extraction and cannabinoid isolation, announced Wednesday its subsidiary MediPharm Labs Australia Pty. Ltd. officially received its cannabis manufacturing license from the Australian Office of Drug Control.
This license allows MPLA to manufacture extracts and tinctures of cannabis and cannabis resin within Australia, in compliance with local laws and regulations.
Why It's Important
This move establishes MPLA as one of the first large-scale Canadian extract-only companies to enter the budding Australian market. Considering the geographic position of the Port of Melbourne, MPLA will be able to establish a robust foothold in both Australia and the Asia-Pacific region.
Additionally, Canopy Growth (NYSE: CGC) has operated in Victoria since 2014 and has a strategic extract supply agreement with MediPharm Labs until May of 2020.
What’s Next
MPLA will continue to create its industrial-scale production facility, with an expected co2 extraction capacity to process up to 75,000kg of dried cannabis annually. A secondary facility is also in construction, dedicated to processing and manufacturing cannabis distillate. MPLA expects to receive its GMP (good manufacturing practices) certification in the fall and will be fully able to commence production and sales activities from that date onward.
Looking at potential long-term events, younger generations of Australian citizens overwhelming support decriminalization of marijuana. With analysts predicting the legal and illegal Oceania market at up to billion and both Canopy and MediPharm producing in the same region, this could give crucial early-mover advantages to dominating the recreational and medical cannabis trade throughout Australia.
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