The Victorian Government has awarded a $1.975 million job grant to the Cann Group this month to support the development of a new cannabis facility in Mildura.
The job grant, awarded from the Regional Jobs Fund, will go towards a medical cannabis cultivation and production facility in Mildura – which is located 540km north-west of Melbourne. The facility is currently under construction and owned by the Cann Group, one of Australia’s largest medical cannabis companies.
The Cann Group was the first company to be issued a Cannabis Research License in 2017 and currently supplies medical cannabis both domestically and internationally. They are currently part of the Victorian Government’s Medical Cannabis Industry Development Strategy. By 2028, the strategy aims for Victoria to supply 50% of Australia’s medical cannabis.
However, despite Mildura’s reputation for rays of sunshine and high light density, the project has already undergone several delays. Although the $10.75 million property was acquired in March last year, the production costs quickly skyrocketed to an estimated $184 million with the project delayed into stages.
Once the Mildura facility is finished it is expected to generate 70,000 kilograms of cannabis flower and will earn over $191 million in annual revenue. That revenue will also be shared with our Canadian cannabis friends, as Canadian company Aurora Cannabis owns a 22.9% equity interest in the Cann Group.
During construction, the facility is employing 133 locals from the Mildura area, with 150 more jobs expected after the facility is opened. On Facebook, Minister for Agriculture and Regional Development Jaclyn Symes celebrated the facility as a win for Mildura’s economy:
I’m really excited to share that more jobs will be created in Mildura as part of our commitment to expanding the state’s medicinal cannabis sector.
Despite the announcement, The Cann Group is down 3.98% on the ASX at 0.84 cents as of July 14th. You can read more about it here.
