Cannasouth shares have dropped from 50 to 29 cents since first listing on the NZX. Photo / Getty Images
Medicinal cannabis company Cannasouth will receive funding from Callaghan Innovation to support two of its research programmes.
The government agency will contribute up to $347,008 to the projects during the next three years, conditional on Cannasouth spending up to $566,172 to match the projects' funding. The grant is subject to
completion of the formal contract.
Chief Operating Officer Nic Foreman says the research programmes are in the areas of neuropathic pain/drug discovery, and drug delivery systems and optimisation technology. The proposed funding is essential for the company's technical and commercialisation efforts.
"Securing capital to ensure we make timely progress in research is key to the commercial success of our therapeutic cannabinoids products," said Foreman.
The announcement comes after the company listed earlier this month after selling $10 million worth of shares at 50 cents each. It was the first share float on the New Zealand Stock Exchange in two years.
