Kiwi cannabis company seeks $20m in funding

Long Lunch 30/10/2018
Weed. Photo: File.

A New Zealand company is seeking investment funding of $20 million to establish itself as a leader in medicinal cannabis.

Zeacann on Tuesday launched the capital raising, which is being managed by PwC, targeting wholesale investors.

The funds will be used to build two cutting-edge hybrid greenhouses in Auckland, cultivate its first crop, development of laboratories and web services, and research with AUT.

Chris Fowlie, Zeacann founder, says it is a “very exciting time” for the world’s medicinal cannabis industry.

“We believe there is a massive opportunity to create a company that can be a global leader in the medicinal cannabis industry.

"To do that you need to scale up. You need to be able to compete with the people that are already out there, and so it needs that kind of investment to do it properly,” he told RadioLIVE’s Lynda Hallinan.

Mr Fowlie says the global market for medicinal cannabis is estimated to reach $30-85 billion by 2025.

He told RadioLIVE the company plans to be an export led company.

“We believe there’s a huge opportunity with other countries – there are 20 legal cannabis markets around the world.

There’s a huge opportunity for New Zealand grown cannabis.

Mr Fowlie says under current laws and when appropriately licensed, Zeacann will be able to begin production for research purposes and import medicinal products for distribution to health practitioners and pharmacists.

The business plans to begin growing cannabis for export and domestic medicinal use, following law changes next year.

Listen to the full interview with Chris Fowlie above.

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