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MedReleaf Australia receives cultivation license
"We're focused on international expansion in countries with a federal legal framework for cannabis, and Australia is an attractive market with a population about two thirds the size of Canada and a focus on medicinal applications," said Neil Closner, CEO of MedReleaf. "Providing our expertise to local partners allows us to participate in a greater number of international markets in a capital efficient way."
MedReleaf, through its wholly-owned subsidiary, MedReleaf Holdings (Australia) Ltd., has a 10% equity interest in MedReleaf Australia and, subject to the execution of additional documentation, it is contemplated that the Company would become entitled to receive certain royalties on the gross revenues of MedReleaf Australia, as well as additional equity in the future.
Legislation to enable the cultivation of cannabis for medicinal and related research purposes was passed by the Australian Parliament on February 29, 2016, with amendments related to licensed domestic cultivation coming into effect on October 30, 2016. Inclusive of the licence issued to MedReleaf Australia, the ODC has issued eleven medical cannabis licences for cultivation and production since November 2016.
"We're excited about being among the early producers to be granted a medical cannabis licence," said Russell Harding, CEO of MedReleaf Australia. "We look forward to working with MedReleaf to bring its level of scientific and operational rigor to the medical cannabis industry in Australia."
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