Medicinal cannabis start-up gets cash for Victoria production plan

Medicinal cannabis start-up Cann Group now has enough cash to build a production site near Mildura after securing a loan from a top-four bank.

The company said on Monday it had received credit approval from National Australia Bank for a $50 million secured debt facility, with documentation expected to be complete within the next month.

Cann Group will use the loan to complete the first stage of its production site near Mildura, with work expected to recommence in February.

The company has already spent about $53 million on site works and a greenhouse and support building.

The total cost of the first stage is estimated to be $112 million.

Cann Group secured a Victorian Government development grant of $1.95 million in July and the rest of the costs will be paid out of cash reserves.

Product is slated to start being processed and released by March 2022.

The company says 130 new jobs will be created once the facility is commissioned but it will use specialist overseas contractors for the construction, and they have been cleared to arrive in Australia in the new year.

The first stage of the project will have annual production capacity of 12,500kg of dry flower equivalent, using technology that the company says will allow it to be sold at a globally competitive price.

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