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Cannasouth Receives GMP Licence to Manufacture Medicines

Cannasouth Limited (NZX:CBD) is pleased to announce it has received its Licence to Manufacture Medicines to produce dried cannabis flower (to the globally recognised GMP standard) at its cultivation facility.

To obtain this licence, Cannasouth had to demonstrate compliance with the New Zealand Code of Good Manufacturing Practice (GMP) for Manufacture and Distribution of Therapeutic Goods.

GMP is the highest quality standard possible. CEO Mark Lucas says, “Achieving the globally recognised GMP standard for our commercial scale facility opens doors to high-value markets worldwide, while also enabling us to launch products in New Zealand.

Inside Cannasouth's GMP drying room in its CEA (Controlled Environment Agriculture) Greenhouse

Inside Cannasouth’s GMP drying room in its CEA (Controlled Environment Agriculture) Greenhouse


“We are seeing exponential growth in demand for GMP flower in Australia and Europe with no signs of slowing down and a similar trend in New Zealand is quickly developing. This validates our strategy to invest in this area.

“Receiving this Licence to Manufacture Medicines is the culmination of a multi-year process. It creates a competitive advantage for Cannasouth because it enables us to produce our medicinal cannabis products in-house without relying on third-party manufacturing steps.”

Cannasouth’s GMP Licence to Manufacture Medicines covers all post-harvest activities and is additional to the Good Agricultural and Collection Practice (GACP) quality standard previously achieved.

Cannasouth shareholders recently approved the proposed merger with Bay of Plenty-based Eqalis. On completion of the merger Cannasouth will operate with end-to-end GMP approval to produce dried cannabis flower, through to the manufacture of cannabis-based ingredients and medicinal cannabis products, including oral solutions.

Now that a Licence to Manufacture Medicines has been obtained Cannasouth will commence the process of verifying flower products for the New Zealand market, creating more competition to benefit New Zealand patients.

Mr Lucas says, “This is a major achievement, and I would like to thank our people for making this happen and our shareholders for their support along the way.”

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