Spring Sciences, an established US medicinal cannabis cultivator and manufacturer, has launched with its Australian partners, Spring Sciences Australia (SSA) an emerging player in the nascent and growing Australian medicinal cannabis market.
SSA is currently working to establish a network of medicinal cannabis growing facilities within Queensland, with a goal of achieving a significant share of the rapidly expanding Australian and International markets.
The first will be located in the Caboolture area of Queensland, supplying flower, live resin and whole plant oils and extracts to the domestic Australian market, as well as key International markets.
SSA is progressing the first of two primary growth phases of its integrated Farm-to-Pharma business model; the construction of an advanced fully climate-controlled GACP/GMP certified cultivation and production facility.
The state-of-the-art 3000m2 grow facility is under construction in the Caboolture area and will supply flower and whole-of-plant oils, followed by infused medicinal products, to both the domestic Australian and key international markets. SSA will leverage the competitive advantages that an established North American cannabis producer brings to the sector in terms of IP transfer, ramp-up speed, quality and yield of production, and value-add product development capabilities, to outperform its market peers.
SSA has been granted its medicinal cannabis cultivation and production licence as well as its medicinal cannabis manufacturing licence and will commence grow operations in Q4 2021.
SSA is currently progressing the first of 4 primary growth phases of its integrated business plan that is underpinned by four fundamental building blocks – R&D, cultivation and production, manufacturing, and distribution:
- Completed construction of the indoor facility.
- Achieved GACP/GMP certification cultivation.
- Signed letter of intent for Cannabis supply.
- Commencement of cultivation Q4 FY21.
- Climate-controlled GACP/GMP certified cultivation and production facility capable of producing more than 6 tonnes per shed of premium dried harvest per annum, whilst concurrently marketing through licence arrangements third-party pharma and infused products:
- Signed letter of intents for supply of raw material.
- R&D initiatives underway on cultivars, grow and manufacturing technologies, and pharma/infused products.
Expansion of the Caboolture facility by adding growth capacity in-line with market demand and in-house extraction capabilities to further the marketing of own pharma/infused medicinal cannabis products.
SSA will leverage the competitive advantages that an established North American cannabis producer brings to the business to outperform market peers and exploit current and anticipated market conditions that validate a strong market demand for consistent, high-quality raw flower material for both direct consumption and value- added manufacturing of innovative infused products.
Spring Sciences Australia is raising up to A$10M @ A$20M pre-money EV which is a substantial discount to ASX listed peers.
The use of the funds over an 18 month period are expected to include:
- Pre-production Capex – A$7.7M.
- Operating Expenditures – A$1.2M.
- Reserve – A$500,000.