AusCann has ploughed another A$3.5 million into its joint venture with unlisted Australian firm Eurocann as the companies continue to explore commercial opportunities in the European and local markets.
It bring the total amount AusCann has loaned to Eurocann to $8m, following an initial $5m provided earlier this year to build greenhouses and manufacture new products.
The agreement, announced in late April, will see the firms explore AusCann’s self-emulsifying drug-delivery technology (SEDDS) with the aim of developing standardised dosage-form cannabis products in Germany and “other markets”.
Meanwhile, Eurocann’s wholly owned German subsidiary, HAPA Pharm, will exclusively manufacture and supply GMP medicinal cannabis to AusCann to sell in Australia and New Zealand.
AusCann said the further cash advance is “in the best interests of the company as a whole”.
Cannabiz has approached AusCann for further comment.
Meanwhile, AusCann has signed a conditional contract to sell its research and development facility in Wangara, WA, for $7m. The deal is subject to due diligence and the buyer, Yolena, raising finances.
The company has leased the facility to Source Certain International since June 2021.