NTI and CannaPacific enter cannabis cultivation deal

ASX-listed medical cannabis company Neurotech International Limited (ASX:NTI) has announced a new cannabis cultivation deal with NSW-based biotech company CannaPacific.

The deal will see CannaPacific growing and maintaining genetic stock for NTI in their 10,000 square metre facility in Lismore. CannaPacific will also help NTI grow and develop a rare collection of strains exclusively licensed and developed by NTI and Dolce Cann Global. 

According to the Chairman of NTI Brian Leedman, the partnership will allow NTI to continue growing the Dolce strains, as well as produce medical cannabis for its ongoing clinical trials and operations. 

The partnership with CannaPacific allows NTi to ensure that we can maintain momentum with our clinical studies through quality product supply.

The company received positive results from a stage 1 product formulation and development study last year. The study found that many of NTI’s strains are able to improve neuronal cell health and cell viability, as well as reduce inflammation in vitro (in a test tube). 

This year, NTI is conducting further phase 1 and 2 trials that will continue to explore the possibility of the strains. The trials will focus on the use of medical cannabis in the management of autism and other neurological conditions. This study will be expanded to larger patient groups Q2 and Q3.

If the outcomes of the trials are positive, NTI believes it will be a huge win for the community and the company. According to NTI, the worldwide market for neurology treatments will be worth $39.4 billion by 2024. 

The agreement between NTI and CannaPacific initially extends to the 30th of June. In return for their work, CannaPacific will receive 2,000,000 shares in NTI. Half of this will be received when the company delivers the first dried flower (or the 1st of August), and the other half will be received when the Office of Drug Control approves the permit for the NTI/Dolce clinical trials.