Taranaki Medicinal Cannabis Company signs lucrative export deal

Medicinal cannabis company Greenfern Industries has struck a lucrative export deal that could be worth more than $1.6 million.

The initial two-year deal is a pick-up order for the purchase of medicinal cannabis grown in Taranaki by Greenfern.

An Offtake Agreement is a binding contract that formalizes the buyer’s intention to purchase a certain amount of the producer’s future production.

Managing Director Dan Casey said the cannabis will be for an overseas medical market and, depending on the chemotypes provided, could be worth more than NZD 1.6 million over the life of the contract.

This comes just days after Greenfern’s previous announcement to the market that it had received the globally recognized Good Agriculture and Collection Practices (GACP) certification through the global certification body Control Union Medicinal Cannabis Standards (CUMCS).

“This is another important milestone for Greenfern and our shareholders. As we go from strength to strength in what is truly a fledgling industry here in New Zealand, the progress we are making is a testament to the strong foundation we have laid to date,” Casey said.

As the company seeks to raise new capital in the second half of 2022, its phase one cultivation facility will be utilized until the larger phase two facility comes online.

“It’s quite a strategy not to go too far by capitalizing on the infrastructure before the markets are ready and the regulations are respected, but at the same time, we don’t want to miss the opportunities that arise. It’s a real balancing act. »

Casey said the company is currently preparing a shipment of medical cannabis for testing to meet New Zealand’s minimum quality standards. Once this is complete, the first batch will be ready to ship.

This latest deal shows a clear path to revenue from Greenfern’s cultivation business and from there the company will scale accordingly to meet overseas demand.

Greenfern’s Australian company, GFI Pharma, continues to acquire patients month after month through the sale of prescription drug tinctures. That, along with its booming hydro plant with winter energy needs, solidifies the company as a progressive and diverse cannabis business.

© Scoop Media

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