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Debt facility to support construction of medicinal cannabis plant

By Darren Linton

Jul 11, 2022

Cannatrek is building a “seed to patient” supply chain at Lemnos.

Construction of a major medicinal cannabis production site at Lemnos will be boosted by an approved debt facility from the Commonwealth Bank.

Cannatrek, which has built up a 25 per cent share of the Australian medicinal cannabis market was building outdoor and indoor grow facilities, a post-harvest facility, an extraction plant and a packaging, storage and national distribution centre, due to open this year.

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The Shepparton development would produce plant-based medicinal products, with the capacity to yield between five and 10 tonnes of dried premium-grade flower a year.

More than 75 jobs were expected to be created once a new production facility was up and running.

Cannatrek chief executive Tommy Huppert described the project as a breakthrough in an industry that heavily relied on imported medicinal cannabis.

“Our Shepparton facility dramatically reduces the need for imported products and secures an essential low-cost medical supply chain for Australian patients,” he said.

“Our Shepparton facility will enable Australia to continue innovating in quality plant-based medicines for people experiencing chronic pain, anxiety and insomnia, while also assisting with medical conditions including epilepsy, Parkinson’s and terminal illnesses.’’

The debt facility would Cannatrek help build a “seed to patient” supply chain.

“To have a tier one bank in the CBA supporting our projects in Shepparton is a tremendously positive sign of growth for our industry and the general health sector,” Cannatrek chief financial officer Brett Schwarz said.