Khiron Life Sciences (TSXV: KHRN) (OTCQB: KHRNF) (Frankfurt: A2JMZC) has received approval for commercial production of psychoactive, high-THC cannabis for both domestic and export purposes.
The Colombian Technical Quotas Group (TQG) has authorized the company to cultivate and commercialize up to 560 kg or approximately, 65,000 units of psychoactive, high-THC cannabis in 2019.
The authorization makes Khiron the first and only cannabis company in Colombia to commercialize THC cannabis for both domestic and export purposes.
Significant Move
Juan Diego Alvarez, vice president of regulatory affairs of Khiron, called the approval of cultivation quotas from the TQG “a game-changer.”
“With these quotas, we become the first and only cannabis company in Colombia with the ability to commercialize high- and low-THC whole plant extract, both nationally and abroad. More importantly, however, it paves the way for our patients to receive high-THC medical cannabis prescriptions that treat key indications and improve their quality of life. That, ultimately, is our first priority,” Alvarez stated.
Khiron has received two key quotas for commercial cultivation and commercial fabrication from the TQG.
In addition to approval for the cultivation of 560 kg of psychoactive, high-THC cannabis, the TQG allowed the company to manufacture high-THC whole plant extract for both export and domestic commercialization. This includes export of whole plant extract as raw material to Uruguay, and through the Mercosur trading bloc, to the Brazilian medical cannabis market, valued at C$18 billion in 2018.
Further, Khiron is also authorized to manufacture high-THC whole plant extract for domestic use, positioning Khiron to be the first cannabis company to produce customized medical cannabis prescriptions, known as magistral preparations, in the country.
The company aims to treat up to 15,000 initial patients in Colombia with three specific indications, including chronic pain, anxiety, and nausea.
Commercial cultivation is expected to begin in the fourth quarter of 2019, while the manufacturing of high-THC whole plant extract is anticipated to start in the first quarter of 2020.
