Neurotech International Limited (ASX:NTI) has established a strategic medical cannabis cultivation partnership with CannaPacific Limited.
CannaPacific will grow and maintain genetic stock and assist with varietal strains developed by NTI and Dolce Cann Global, from which NTI has an exclusive worldwide license to utilise. Early this month, Neurotech announced its licencing arrangements with Dolce Cann Global had been expanded from autism, epilepsy and ADHD to include all neurological disorders.
The cultivation will occur at CannaPacific’s licenced cultivation facility near the northern NSW regional city of Lismore, which boasts a 10,000 sqm glasshouse and high-security outdoor cultivation area capable of producing over 20 tonnes of cannabis flower per annum.
“We’re creating an agricultural innovation hub for companies who wish to enter the medicinal cannabis space and leverage our existing cultivation and production facility,” said CannaPacific CEO, Joshua Dennis.
Neurotech says the arrangement will enable it to prepare for expanded clinical studies after outcomes of Phase I/II clinical trials starting this quarter, which will assess efficacy of the strains among a broader population of patients with autism and related neurological disorders.
“The partnership with CannaPacific allows NTI to ensure that we can maintain momentum with our clinical studies through quality product supply and importantly, maintain and develop our intellectual property base through our exclusive licensing of the Dolce Cann strains,” said Neurotech International Chairman Brian Leedman.
In December last year, Neurotech reported final results of in-vitro studies indicating its DOLCE/NTI cannabis strains exhibited potent anti-inflammatory activity.
As well as potentially benefiting many patients, there’s big bucks to be made. Neurotech has quoted research forecasting the global market for neurology treatments is expected to grow to $39.4 billion by 2024.
For its role in the partnership, CannaPacific will be issued 1,000,000 shares in Neurotech when an Office of Drug Control permit to produce NTI / Dolce cannabis strains for clinical trials is provided, then another 1,000,000 shares after delivery of the first harvest of dried flower, or by 1 August 2021 – whichever occurs first.
Neurotech’s shares closed a whisker over 6c following the news, up 3% on the day prior.