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Cannasouth secures R&D funding from Callaghan Innovation
The Board of Cannasouth Limited (NZX: CBD) is pleased to advise it has received confirmation of funding from Callaghan Innovation to support two of its medicinal cannabis research programmes, subject to completion of the formal contract.
Cannasouth applied for a project grant from the government-owned agency in March 2019 to fund research in the areas of Neuropathic Pain/Drug Discovery, and Drug Bioavailability/Delivery System/Optimisation Technology.
Callaghan has committed to contributing up to $347,008 (excl. GST) to the projects over the next three years. This is conditional on Cannasouth spending up to $566,172 (excl. GST) to match the projects funding.
Chief Operating Officer Nic Foreman says the proposed funding is essential to support the Company’s technical and commercialisation programmes.
“Securing capital to ensure we make timely progress in research is key to the commercial success of our therapeutic cannabinoids products.”
“This grant will allow us to take the next step towards the development of advanced cannabinoid formulations ready for human efficacy and drug delivery-controlled trials.”
Today’s announcement is in addition to three previous grants from Callaghan Innovation for projects that Cannasouth and its research partners have either completed or are underway.
“We are grateful to Callaghan for investing in the emerging medicinal cannabis sector,” says Foreman.
“We are excited about the potential for our research to enhance outcomes for patients suffering from a wide range of debilitating medical conditions.”
Foreman confirms that the Callaghan Innovation funding will enable Cannasouth and its research partners to apply to the Ministry of Health (MoH) for the necessary licenses to conduct the research and development projects specified in the grant application.
Plant material from Cannasouth’s Waikato-based cultivation facility will be used in its Waikato Innovation Park laboratory to extract cannabinoid compounds for the proposed projects. The first harvest of plants growing in the facility is expected in the next two months.
Today’s funding announcement comes following Cannasouth’s oversubscribed Initial Public Offering (IPO) of new shares and subsequent listing of the Company on the NZX Main Board on 19 June 2019.