The Cann Group starts growing medicinal cannabis in Melbourne

File photo. Laura Lezza/Getty Images

The Cann Group has been given a permit by the Office of Drug Control to grow medicinal cannabis at a secret location in Melbourne.

The company, which listed on the ASX earlier this month after raising $13.5 million, has been issued permits for one medicinal cannabis permit and two cannabis research permits.

The first plants are expected to be harvested by early August.

A short time ago, Cann shares were down 4.4% to $0.535.

Harvested material from the plants is being supplied under a commercial agreement, the terms of which, including manufacturer details, volume, and price, will be kept confidential.

“We will start cultivation at our Southern facility, while work continues on preparing our Northern facility, also in Melbourne, which will have a larger cultivation and production capacity,” says Cann CEO Peter Crock.

“When the facility modification is complete towards the end of this year, we will apply for our licences and permits to be extended to that facility.”

Cann is focused on cultivating and manufacturing medicinal cannabis for sale and use within Australia.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.