Capital Mining to Acquire Cannabinoid Extracts Australia

Capital Mining Ltd. (ASX:CMY) announced that it’s entered into a non-binding proposal to acquire Cannabinoid Extracts Australia Pty Ltd. (CEA) from Essential Oils of Tasmania Pty Ltd. (EOT).

The move is in line with Capital’s goal of becoming a “turnkey market leader in medicinal cannabis and hemp based products.”

Highlights include:

  • Subject to legislative reform and the grant of licences from the Department of Health and Human Services, Tasmania (‘DHHS’) and Therapeutic Goods Administration (‘TGA’), CEA intends to aim to cultivate industrial hemp and extract cannabidiol from industrial hemp on a commercial scale.
  • Changes to Tasmanian legislation regarding the scheduling of cannabidiol are currently proposed (although there is no guarantee that will occur).
  • On 3 October 2014, EOT submitted an application to the DHHS for a licence to cultivate industrial hemp for the purposes of extracting cannabidiol from the harvested crop. A request is proposed to be made to transfer this licence application from EOT to CEA as part of the acquisition.
  • On 12 February 2015, CEA submitted an application to the TGA for a licence to manufacture and process cannabidiol.
  • CMY intends to maintain a close working relationship with EOT, drawing on its core production competencies.

Click here to read the full Capital Mining Ltd. (ASX:CMY) press release.