Cann Group has reported unaudited sales revenue for the quarter ending March 31 2022 of A$1.27 million, a 334% increase on the prior corresponding period. 

The company attributed the growth to increased sales of extracted oil formulations, new sales of dried flower products released from its recently GMP-licensed Southern facility, and increased sales of its Satipharm CBD capsules, most notably in Australia. 

Cann said it expects sales from these sources to continue to grow during the next quarter, along with Satipharm sales in the UK.

Cann spent $5.84 million on its new production facility near Mildura during the quarter

Meanwhile, the company said participant recruitment for its phase 3 clinical trial examining the efficacy of Satipharm for the short-term treatment of sleep disturbance and quality-of-life outcomes is “well underway”. 

In February, the company announced recruitment of patients for the trial, which forms part of the registration program for a Schedule 3, over-the-counter CBD medicine, would begin in March. 

Cann spent $5.84 million on the construction and development of its new production facility near Mildura during the quarter, for which it drew down $4.74 million from its loan facility with National Australia Bank (NAB). 

The firm recently negotiated a $15 million working capital facility with NAB to help scale the business and fund its long-term growth strategy. The two parties have also renegotiated the $50 million loan originally agreed in December 2020 to help fund construction of Mildura. 

In a busy period for the company, Cann entered into an agreement with GSK Consumer Healthcare to evaluate the distribution and marketing of Satipharm as an over-the-counter medicine in Australia.

It was also licensed by the Office of Drug Control to begin commercial cultivation at Mildura, while the UK Food Standards Agency included Satipharm in a list of products that could remain on sale in the country.

Peter Crock - Cannabis News Australia - Cannabiz
Cann Group CEO Peter Crock

CEO Peter Crock said: “The March quarter encompassed the achievement of key milestones in respect of our manufacturing capabilities and scale; our regulatory approvals; our R&D programs; and progress associated with our pivotal S3 clinical trial. 

“That positive momentum has continued into the early part of this current quarter, with the signing of the agreement with GSK Consumer Healthcare, the UK approval of our Satipharm product range and the commencement of commercial cultivation activity at Mildura. 

“To capitalise on these achievements, we are now prioritising a stronger focus on sustainable sales growth as we look to meet increasing demand from both the domestic and overseas markets.”

Prior to launching Cannabiz, Martin was co-founder and CEO of Asia-Pac’s leading B2B media and marketing information brand Mumbrella, overseeing its sale to Diversified Communications in 2017. A journalist...