Cannaponics has signed a memorandum of understanding (MOU) with medical supply company Avacare Health Australia to develop a pharmaceutical manufacturing facility at its site in Collie, WA.

Under the agreement, Avacare will operate, construct and fund the facility while Cannaponics will provide the land, power, water and security. 

Cannaponics MD Rod Zakostelsky (left) celebrates with Avacare director Raj Singh

The two companies have also agreed to investigate the research and development of hemp as a replacement for petroleum-based plastics and textiles needed to manufacture PPE and various medical devices. 

Avacare is an integrated health group serving Australia and Asia in the distribution of pharmaceuticals, medical disposables, consumer health and medical equipment.

The MOU, which is subject to Cannaponics receiving appropriate regulatory approvals, also provides the opportunity for Avacare to distribute its products globally. 

Cannaponics managing director Rod Zakostelsky said the move was an important milestone for the company as it gears up for an IPO in 2023.

“The Avacare partnership provides a global network in order for Cannaponics to distribute its future products,” he added.

Avacare director Raj Singh said: “We are delighted to be able to partner with Cannaponics and look forward to building many more strong working partnerships in the medical supply community in WA.” 

He added the state is “ideally positioned to develop its medical industry and supply products throughout Asia and Australia”.

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...