Medical Marijuana Company PhytoTech Has Delayed Its Float While It Convinces The ASX That What It's Doing Is Legal

A cannabis plant at CannaSearch, Colorado’s first cannabis job fair. Doug Pensinger/Getty Images

The IPO of PhytoTech, a medical marijuana company, has been postponed until early next year after the ASX queried the legality of the business.

The company is seeking $5 million through 25 million shares at 20 cents each and was to list this week.

Ross Smith, executive director, says the delay was caused by the ASX seeking assurances about the legality of the company’s products.

PhytoTech will use marijuana grown in California and Uruguay to develop medical products in Israel to be sold in Israel, Europe, the United States and Canada.

Australia will also be a market if medical marijuana is legalised.

“They have requested a legal sign-off from Israel and Australia in relation to what we are doing so as to not to be breaking any laws,” Mr Smith told Fairfax Media. “It’s fair enough but we already know that we aren’t.”

Smith said the IPO had been oversubscribed three times.

Prime Minister Tony Abbott has thrown his support behind a trial of medical cannabis in NSW, with preparations for the trial to begin this week.

While the federal regulator has approved the drug for use under certain medical circumstances, approval for importation of the plant from Europe or the US could take several weeks, in which case the NSW government says it may grow its own crop.

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