01/03/2018 | Press release | Distributed by Public on 01/03/2018 17:34
SASKATOON, Saskatchewan--(BUSINESS WIRE)-- CanniMed Therapeutics Inc., (TSX: CMED) ('CanniMed' or the 'Company'),through its wholly owned subsidiary SubTerra LLC, has applied for State of Michigan licenses for the production and processing of medical cannabis.
Further to the municipal approval received from Carp Lake Township, Michigan (see news release dated December 14, 2017), the Company has applied to the State of Michigan for a Class C Grower License (1,500 plants), as well as a Processor License. Upon receipt of the State Licenses, it is the Company's intention also to apply for Federal approval to conduct medical cannabis research through the US Food and Drug Administration (FDA) and the Drug Enforcement Administration (DEA).
This initiative is consistent with the Company's strategy in advancing pharmaceutical drug approval for cannabis-based medicine in the United States. This application is a pivotal point in the Company's business plan, and once approved will provide a significant toe hold in the US market through the established governmental approval process.
Upon receipt of the required licenses and approvals, the Company plans to utilize its existing patented underground growth chamber technology to grow medical cannabis. In addition, the Company intends to apply for four additional grower licenses when the planned 15,000 sq. ft. underground expansion at the SubTerra facility is commenced in 2018. The expansion is expected to be complete in 2019 and at that time the Company plans to significantly increase the number of employees working within the SubTerra facility.
'This application to the State of Michigan demonstrates our continuing focus and leadership towards legally producing medical cannabis in the United States,' said Brent Zettl, President and CEO, CanniMed. 'Our long and positive relationship with the State of Michigan includes assisting with drafting of the former medical cannabis legislation, and repurposing an exhausted mine to create the biosecure SubTerra underground facility, with its unique, patented and scalable design. We are confident that the State will agree that our 17 years of quality medical cannabis cultivation experience in Canada is of tremendous value to the development of Michigan's medical cannabis industry and furthering the research endeavours of this important medicine.'
SubTerra LLC is a plant-based pharmaceutical manufacturer located in White Pine, Michigan committed to the production of Active Pharmaceutical Ingredients (API), such as high value proteins and phytochemicals. SubTerra is unique in that all crops are grown in a patented, biosecure underground environment, resulting in a number of key benefits, including:
CanniMed has and will continue to abide by all federal policies and laws regarding the production of cannabis in the United States and does not currently plan to begin medical cannabis production until the state licenses are obtained and a federal research license has been received. As a result, this announcement does not require additional disclosure to the Canadian Securities Administrators and the Toronto Stock Exchange.
About CanniMed Therapeutics Inc.
CanniMed is a Canadian-based, international plant biopharmaceutical company and a leader in the Canadian medical cannabis industry, with 17 years of pharmaceutical cannabis cultivation experience, state-of-the-art, GMP-compliant production process and world class research and development platforms with a wide range of pharmaceutical-grade cannabis products. In addition, the Company has an active plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications.
The Company, through its subsidiaries, was the first producer to be licensed under the Marihuana for Medical Purposes Regulations, the predecessor to the current Access to Cannabis for Medical Purposes Regulations. It was the sole supplier to Health Canada under the former medical marijuana system for 13 years, and has been producing safe and consistent medical marijuana for thousands of Canadian patients, with no incident of product diversion or recalls.
Notice Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements with respect to the proposed application to the FDA and the DEA, and the anticipated reception of CanniMed's application to the State of Michigan are 'forward-looking statements'. Forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'estimates', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved.
Forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CanniMed Therapeutics Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including the risk that the regulatory approvals will not be issued within the timeframe anticipated or at all, the risks inherent in cannabis plant cultivation, and the risks described in CanniMed Therapeutics Inc.'s Annual Information Form for the year ended October 31, 2017 and other documents filed with applicable Canadian securities regulatory authorities which may be viewed at www.sedar.com . The forward-looking statements included in this news release are made as of the date of this news release. CanniMed Therapeutics Inc. does not undertake to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, unless required by applicable securities legislation.
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Source: CanniMed Therapeutics Inc.