Miners in Tasmania may have to develop a green thumb as an
Australian exploration company sets its sights on being Australia’s first ASX
listed domestic cannabinoid producer.
Capital Mining announced
last month that it would enter the medical marijuana game, but the venture
took a step forward on Friday when the exploration company said it would take
ownership of Tasmanian company Cannabinoid Extracts Australia (CEA).
CEA was originally set up to obtain licenses for the
manufacture of cannabidiol (CBD), a non-psychoactive drug which can be used to
treat convulsions, inflammation, nausea and other medical conditions, and also demonstrates
Capital Mining have negotiated a non-binding agreement for a
sale price of $125,000 for the purchase of CEA from Essential Oils of Tasmania
(EOT), plus a further $125,000 if the CEA can acquire the appropriate hemp
production licences from the Tasmanian government, as well as shares and
Capital have recently entered into an unsecured loan
agreement for immediate drawdown of $150,000 at six per cent interest per
Earlier this year NSW state premier Mike Baird announced the
start of medical marijuana trials which would include children with epilepsy,
and now Queensland
and Victoria have joined the race with Premier Anna Palaszczuk announcing
Queensland will undertake similar government-funded studies.
In March Capital Mining acquired 100 per cent of the US
hemp-based product company Nutrawerx, as well as a Canadian marijuana producer
Broken Coast Cannabis.
Capital Mining is the second ASX listed company to become
involved in the race for medical marijuana, after Israeli managed company
Phytotech floated in January.
The biggest risks for Capital Mining’s new venture are that
the licence application for BCD production may not be transferred by the
government, as well as the risk that federal and state legislative changes will
not occur to allow the business to proceed.