Joint venture company DayaCann is currently harvesting in Chile.

AusCann Group Holdings (ASX:AC8) is in the process of harvesting its first medical cannabis crop located in Chile.

The crop was planted by the DayaCann joint venture, of which AusCann holds 50:50 with Fundacion Daya.

The large open greenhouse grown plants include various strains that have been selected for specific medical usage.

An estimated 300 kilograms of dried cannabis product from the harvest will be sent to a certified manufacturing facility for processing into medicinal cannabis formulations.

Elaine Darby, managing director, commented: “We’re delighted with the harvest of our first crop with our partner Fundacion Daya and we’re confident we have selected the strongest and most appropriate strains for effective medicine formulations and further cultivation in the next harvest.”

Next steps and local market opportunity

Of the strains harvested, four have been selected as superior strains that have been clonally selected for future crops.

Pending successful clinical trials in Chile, these formulations will be registered through the Chilean National Institute of Public Health and made available for sale to Chilean patients and export markets.

South America represents a burgeoning region for medicinal cannabis with Argentina recently giving legislative approval to legalise the use of cannabis oil and other cannabis derivatives for medicinal purposes.

The Health Ministry in Argentina have also established a medical cannabis research program to provide access for patients.

DayaCann is optimally positioned in Argentina’s neighbouring country Chile to become a supplier of clinically validated medical cannabis products to Argentinian patients.

AusCann is also looking at leveraging this knowledge gained from Chile into the Australian market.

Background

Medical cannabis company, AusCann, commenced trading on the ASX in February after it raised the maximum $5 million under its prospectus offering.

AusCann intends to establish a growing facility in Australia to eventually supply Australian patients with Australian grown and manufactured medicines.

However, until domestic approvals are received, AusCann’s medicinal products will be imported from its globally recognised partners.