More firms target medical cannabis space

A medical cannabis company focused on animal health has announced plans to list on the ASX, while two other companies - including a pearling business - have made movements in the pharmaceutical space.

CannPal Animal Therapeutics has launched its prospectus today, with plans to raise $6 million from investors at 20 cents a share.

The Melbourne-based company is focused on researching the benefits of medical cannabis for companion animals, and is developing medicines derived from cannabinoids to provide veterinarians with medicines to treat animals in a safe and ethical way.

The Melbourne company has hired Perth-based Merchant Group to act as its corporate adviser to the raising.

Managing director Layton Mills told the market that CannPal had also entered into a strategic research partnership with Perth-based medical cannabis company Zelda Therapeutics, to undertake clinical research after completing its IPO.

“With the pedigree of our management and advisory team, we are confident that following the success of our clinical trials, we will be able to successfully gain regulatory approval for our cannabinoid-derived animal therapeutics and bring them to market,” he said.

Three of the founders of Zelda – Stewart Washer, Jason Peterson and Harry Karelis – are also owners of special-purpose company MJ Life Sciences, which has today agreed on a $US500,000 investment by Sydney-based Chapmans, in exchange for 50 per cent of the business.

Chapmans said in a statement today that it was actively seeking investment opportunities in the medical cannabis industry, and the deal with MJLS paved the way for a strategic long-term partnership between the two companies.

One of Zelda's directors, California-based Mara Gordon, is also a co-founder of Aunt Zelda's, of which MJLS is an investor.

Mr Karelis is also a director of Perth-based medical cannabis company AusCann Group Holdings, which is chaired by Mr Washer's father, Mal Washer.

Meanwhile, local company Atlas Pearls and Perfumes has announced plans to diversify its business, with its half-owned subsidiary Essential Oils of Tasmania joining forces with medical marijuana company LeafCann Group, to pursue a medical cannabis licence in Tasmania.

Atlas managing director Pierre Fallourd said LeafCann brought the science and relevant expertise to the venture, while EOT brought the farming capability and 30 years of extracting ingredients from a wide range of plant species.

“Together we represent an experienced, well credentialed team with the capability to produce a quality product,” he said.

EOT subsidiary Cannabinoid Extracts Australia will become a 50:50 joint venture between EOT and LeafCann, with plans to immediately move forward with a licence application process.