Medicox Signs Exclusive Import Contract for Cannabis Raw Materials with Australian Company Green Farmers

[Asia Economy Reporter Jang Hyowon] MedicoX, a KOSDAQ-listed company, announced on the 20th that it has signed an exclusive import contract for cannabis raw materials with GreenFarmers, a cannabis cultivation company based in Australia, aiming to expand its medical cannabis business infrastructure. With this contract as a turning point, MedicoX will be able to secure cannabis raw materials necessary for producing CBD (cannabidiol) oil, referred to as medical cannabis, from GreenFarmers.

MedicoX aims to build a business model that manufactures high-quality finished CBD oil products using cannabis raw materials sourced locally in Australia from GreenFarmers, and ultimately imports and distributes them domestically.

MedicoX plans to finalize a detailed contract with GreenFarmers as soon as possible and also complete an OEM contract under discussion with an Australian pharmaceutical company for CBD oil manufacturing. Once all contracts from raw material procurement to OEM manufacturing are completed, MedicoX expects to secure 10,000 ml of CBD oil. The company anticipates that the CBD oil procured through this process will generate sales of approximately 13 billion KRW upon domestic distribution.

GreenFarmers, preparing for an IPO on the Australian Securities Exchange (ASX) this year, is a cannabis cultivation specialist that obtained a license for medical cannabis cultivation and production from the United Nations Office on Drugs and Crime (ODC) in August last year. It produces about 5,000 to 7,000 kg annually of around 20 varieties of medical cannabis on a 4,000 square meter cultivation site that meets the Good Agricultural and Collection Practices (GACP) and Good Manufacturing Practice (GMP) standards. MedicoX expects that with GreenFarmers planning an additional 4,000 square meter facility expansion in 2023, an additional 10 billion KRW worth of medical CBD oil can be secured.

In May, MedicoX also began establishing a medical cannabis research and manufacturing facility covering a total of 36,200 square feet (approximately 1,017 pyeong) in Laos through a joint business contract with Cultiva LLC. During the joint business promotion with Cultiva LLC, MedicoX also secured exclusive distribution rights for the domestic medical cannabis business.

Following Laos, MedicoX is expanding its global medical cannabis business infrastructure by signing an exclusive import contract with the Australian cannabis company GreenFarmers, aiming to establish a foundation for supplying high-quality CBD oil with competitive pricing and products domestically. The company plans to gradually proceed through the domestic Ministry of Food and Drug Safety’s approval process and targets initial distribution to the Korea Rare Essential Drug Center and others for CBD oil supply.

Oh Daehwan, CEO of MedicoX, stated, “The price of 100 ml of domestic CBD oil reaches about 1.6 million KRW on a non-reimbursed basis, which is a significant burden for patients. As discussions continue domestically to ease regulations on cannabis production, such as separating cannabis with THC content below 0.3% from the current Narcotics Control Act, we will prepare to establish cannabis oil refining and research facilities (LAB) domestically based on our global market experience to produce refined medical cannabis oil in the future.”