AusCann buys Perth R&D site for $5.3m

AusCann Group Holdings has acquired a 7,300 square metre research and development facility in Perth for $5.25 million.

In a statement to the ASX, the company said the facility would focus on its cannabinoid pharmaceutical product pipeline.

AusCann said it would invest up to $6 million over time to customise and fit out the site for use during 2019.

The property was sold by Mair Property Funds and represents a per square metre rate of $1,579.

Located at 11 Excellence Drive in Wangara, the property was acquired by Mair in 2012 for $4.85 million as part of its multi-asset MPF Property Trust 1.

“We believe the sale represents a good result for both parties, providing both a strong exit position for the trust and an opportunity for the new owners to expand their existing business,” Mr Elwood said.

AusCann executive director and interim chief executive Paul Macleman said the acquisition of the R&D site was a major stepping stone for the company.

“Our key point of difference compared to other cannabis producers is our commitment to a rigorous pharmaceutical development program, which will now be strengthened through the establishment of our own facility to support further research and development towards bringing new products to market,” Mr Macleman said.

Mr Macleman has been AusCann’s interim chief executive since September, after Elaine Darby resigned from the top job.

Earlier this week the company announced Canada-listed Khiron Life Sciences would pay DayaCann $1.67 million to cultivate a cannabis crop.

DayaCann is a 50:50 joint venture formed by AusCann and Chilean partner Fundación Daya.

Shares in AusCann were up 3.15 per cent to trade at 66 cents each at the close of trade.

The company’s share price was $1.74 one year ago.