AusCann Group DayaCann joint venture to commence crop cultivation with Khiron

AusCann Group Holdings Ltd (ASX:AC8) through its DayaCann joint venture with Khiron Life Sciences Corp (CVE:KHRN) is to commence its first third party cannabis cultivation activity.

Khiron is a third party working with the joint venture, Khiron’s core operations are in Colombia.

AusCann announced an MoU between DayaCann and Khiron on 1 October 2018 to collaborate on the development of medicinal cannabis products and market in Chile.

This includes cultivation, manufacturing, scientific and commercial activities that support cannabinoid medicines as a valued medicinal option.

Khiron to pay DayaCann US$1.2 million

Under the terms of the agreement, DayaCann will provide cultivation and potentially manufacturing services to Khiron.

DayaCann is now preparing for the cultivation of cannabis plant material to be used for patients and clinical trials, resulting in staged payments by Khiron to DayaCann of US1.2 million.

READ: AusCann Group shortlists candidates for chief executive officer role

AusCann’s executive director and interim CEO Dr Paul MacLeman said: “We are extremely pleased to see the MoU with Khiron progress towards the commencement of cultivation activity on the ground for the 2019-2020 season.

“This will result in supply of quality medicinal cannabis material to Khiron, allowing them to help Chilean patients.

“This is the first step in our collaboration, and we look forward to continuing to work together to address unmet medical needs in the Latin American market.”

Story by ProactiveInvestors