MMJ's Australian distribution partner has received import licence.

MMJ PhytoTech’s (ASX:MMJ) Australian distribution partner, HL Pharma, has received approval for a medicinal cannabis importation licence from the Department of Health, Australia.

This is an important development for MMJ as it enables the direct supply to Australian pharmacies through its strategic partnership with Melbourne-based HL Pharma.

HL Pharma will use its extensive distribution network to facilitate the sale of MMJ’s Swiss subsidiary Satipharm AG’s cannabidiol (CBD) capsules to approved customers.

Satipharm’s Gelpell CBD capsules are produced in Switzerland and have successfully undergone a phase 1 clinical trial for safety.

Importantly, Satipharm’s CBD capsules are set to become one of the first medicinal cannabis products available to approved customers in Australia.

Satipharm has the necessary inventory to immediately commence the importation of its CBD capsules into Australia.

Incidentally, the Canadian Federal Government has confirmed it will move to legalise recreational cannabis by 1 July 2018.

The Canadian Government’s initial plans and proposed legislative framework are expected to be publicly released on 10 April 2017.

MMJ owns a cannabis production facility in Duncan, British Columbia, targeting a production capacity of 8,500 kilograms of dried cannabis buds per annum by the end of calendar year 2017.

Following a recently signed agreement to secure a land package located adjacent to the existing Duncan facility, MMJ is aiming to drive production capacity to 50,000 kilograms per annum by 2020.