Capital Mining stakes claim in Canadian medical cannabis market

THE ROADHOUSE PHARMACY: Capital Mining (ASX: CMY) has signed a binding Heads of Agreement, under which the company claims it will become the first ASX-listed company to hold a direct stake in a licensed grower, manufacturer and distributor of medical cannabis products under Canada’s Marijuana for Medical Purposes Regulations (MMPR).

The stake is to come through an investment in Broken Coast Cannabis Ltd (BCC), a company which currently has the capacity to produce 720,000 grams of cannabis annually.

“Through the proposed investment by CMY, BCC intends to increase production to 2,000,000 grams,” Capital Mining said in its ASX announcement.

Capital Mining also advised of the signing of a second binding Heads of Agreement, under which it intends to purchase 100 per cent of Cannan Growers Inc (CGI).

The deal includes the rights to CGI’s MMPR license application and intellectual property required to make license applications throughout the world (based on the Canadian system), including Australia.

“CGI is a distributor of bulk wholesale cannabis, industrial hemp and respective bi-products and derivatives,” Capital Mining explained.

“CGI has a pipeline of initiatives in North America, South America, Europe, and Asia in anticipation of the global shift of the medicinal health, wellness and industrial cannabis industries.

“CGI intends to serve these sectors as the Quality Assured raw materials supplier for leading hemp based consumer goods companies.”

Website: www.capitalmining.com.au