Following a strong start to the week, the Auscann Group Holdings Ltd (ASX: AC8) share price has now climbed over 18% since this time last week.
In afternoon trade the medicinal cannabis company's shares are up 5% to 54.5 cents.
Why have its shares rocketed higher?
Last week AusCann announced that it has been granted a licence to manufacture medicinal cannabis products in Australia by the Office of Drug Control.
This licence allows AusCann to manufacture and supply cannabinoid medicines and completes the supply chain for the company.
Previously the company had been granted cultivation licences in Western Australia and Tasmania.
The next step will be developing the products and then getting them in the hands of prescribing doctors.
AusCann is targeting palliative care symptoms, chemotherapy-induced nausea, treatment-resistant childhood epilepsy, and chronic pain. The Australian chronic pain market alone has been estimated by AusCann to be worth upwards of $5.8 billion a year.
