Shares in Australian cannabis producer MGC Pharmaceuticals Ltd (ASX: MXC) rose 5% after it delivered a market update on its global operations.

It reported a 30% increase in its Czech crop in 2018 and that dried flower is now en route to its Slovenian extraction facility. MGC recently gained a permit from the Slovenian Ministry of Health to extract phytocannabinoids from marijuana buds and create a range of derivatives.

The firm also revealed that it is building a new facility in Malta and that it will move cultivation operations to the island when it is ready.

They have developed a new cannabis strain that offers the highest potency of any MGC product launched to date, offering more than 35% THC and less than 1% CBD.

Its botanical research group has teamed up with the University of Slovenia’s biotechnology department to develop a new cannabis strain that offers the highest potency of any MGC product launched to date, offering more than 35% THC and less than 1% CBD.


Despite its modest gains this week, MGC is down 65% from its yearly high, mirroring a trend that has seen fellow ASX cannabis stocks such as Auscann Group Holdings Ltd. (ASX: AC8), Althea Group Holdings Ltd. (ASX: AGH), Botanix Pharmaceuticals Ltd (ASX: BOT) and Cann Group Ltd (ASC: CAN) decline in the past 12 months.

The state of Victoria is hoping to become the cannabis bowl of Australia, according to Victorian Agriculture Minister Jaclyn Symes. She noted that the state, which includes the major city of Melbourne, is renowned for its agricultural product and that it is a gateway to Asia. “This is a very exciting industry,” she said. “They are all moving here because they see the opportunity that is on our doorstep.”

MGC has an office in Melbourne, while Cronos is also setting up its headquarters in the city. It plans to build a 120-acre research and development centre, expected to create around 120 new jobs. Its investment in the state is set to reach $30 million over the next five years.

The Victorian Government has set a target of 500 local jobs being created by the nascent cannabis industry in the state, and it is supporting research and development. Industry advocates say that prices for Australian patients are currently “staggering” as it relies so heavily on imports, and they hope to create a more affordable domestic supply, while also exporting to Asia.

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