CBD has no psychotropic properties, unlike its popular cousin Tetrahydrocannabinol (THC). In the global market, CBD typically sells for between $US50,000 to $US70,000 ($65,000 to $92,000) a kilo.

A key milestone

"Receiving these licenses is a key milestone for MGC," said managing director Nativ Segev. "The ability to both grow and process the Cannabis Sativa (Hemp) on site at the facility in Slovenia sets the business apart from other pure growers in the region and significantly de-risks the businesses path towards near-term commercialisation."

Despite the rush to list medical marijuana companies on the ASX - MGC Pharmaceuticals is the third - the production of cannabis and domestic therapeutic usage is still illegal in Australia, meaning the companies are conducting their actual business anywhere but here.

MGC Pharmaceuticals managing director Nativ Segev said receiving the licenses was a key milestone for the company. Supplied

The company is now on track to merge with Canadian grower MMJ Biosciences in a $15.5 million deal.


Fellow ASX-listed Capital Mining is in the process of reinventing its business, acquiring a 24 per cent stake in Canadian company, Broken Coast Cannabis, with an option to acquire up to 50 per cent. The Perth-based mining shell also attempted to acquire 100 per cent of Cannabinoid Extracts Australia from Essential Oils of Tasmania, but the deal fell through.

PM support

Prime Minister Tony Abbott threw his support behind the legislation of cannabis for medical purposes, in letter to talkback radio host Alan Jones last year.

"I have no problem with the medical use of cannabis, just as I have no problem with the medical use of opiates," Mr Abbott wrote in a letter dated August 23 and reported by Fairfax at the time.

"If a drug is needed for a valid medicinal purpose though and is being administered safely there should be no question of its legality. And if a drug that is proven to be safe abroad is needed here it should be available.

"I agree that the regulation of medicines is a thicket of complexity, bureaucracy and corporate and institutional self interest."