The Auscann Group Holdings Ltd (ASX: AC8) share price was down 4% to $1.68 on Friday, after the stock had climbed 25% higher during the week.
While the main driver of the price surge was the announcement that the company received an import permit to source medicinal cannabis products from Canadian company Canopy Growth Corporation, on Thursday Auscann released a report summarising progress made in the March 2018 quarter.
Auscann and its partner Tasmanian Alkaloid expect to plant their first Australian crop this year, and to have products available by early 2019. Auscann signed an agreement with Australian Pharmaceutical Industries Ltd (ASX: API) for the domestic distribution of its products, but the company is also looking at export markets.
In fact, at the beginning of January, Auscann's share price skyrocketed on the news that the federal government would permit the export of cannabinoid medicines from Australia.
In the meantime, Chilean authorities have granted patients immediate access to medicinal cannabis. Auscann operates in Chile through Dayacann, a joint venture with the local Fundación Daya.
Auscann spent $1.5 million during the quarter, and $400,000 in R&D. This leaves a $12 million cash balance, enough to continue operations while looking forward to the first sales.
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