Cannabis company Cann Group Ltd is ending the week on a high

The Cann Group Ltd (ASX:CAN) share price is ending the week with a move higher thanks to a new agreement…

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Much to the relief of its shareholders, the Cann Group Ltd (ASX: CAN) share price is heading higher during trade on Friday.

In afternoon trade the medicinal cannabis company's shares are up 2% to $2.96 and look likely to bring their four-day losing streak to an end.

Why are its shares higher today?

This morning Cann Group announced that it has signed a memorandum of understanding (MOU) with Melbourne-based Under The Tree Biopharmaceuticals (UTT) for cannabis research.

According to the release, UTT will set up a laboratory at Cann's Northern facility in Melbourne and work towards developing analytical techniques with a view to providing analytical services to the medicinal cannabis industry in Australia.

The MOU will see UTT provide Cann Group with access to independent analytic services in quality control testing for its products. CEO Peter Crock believes this will provide the company with expertise in cannabis science research that will help it to stay at the forefront of the local industry.

Cann Group faces stiff competition in the industry from the likes of Auscann Group Holdings Ltd (ASX: AC8) and Hydroponics Company Ltd (ASX: THC). All three are aiming to become the market-leader in the fledgling industry.

Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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