Another medical cannabis company is looking to list on the ASX, joining about 20 other companies in the sector.
Cronos Australia launched a $20 million IPO on Wednesday, underwritten by Bell Potter, with the goal of debuting on the ASX on November 11 as a $64.4 million company.
The company was established as a joint venture between NASDAQ and Toronto Stock Exchange-listed Cronos Group and Melbourne-based private equity firm NewSouthern Capital, and Cronos Group will own 31 per cent of the Australia business post-IPO.
Chief executive Rodney Cocks said Cronos Australia is different from other ASX-listed companies in that it has an asset-light branded strategy.
Unlike other companies that own their own greenhouses, Cronos will import Cronos Group’s “peace naturals” cannabis dry flower and oils produced in Canada.
“We intend to establish a beachhead in Australia, and then exports premium quality cannabis into the Asian Pacific markets as they evolve,” Mr Cocks said.
The prospectus mentions New Zealand as a first foreign target market, with the company set to explore exporting to Asia countries after 2021.
The company said it has all the licences needed to import, export, cultivate, manufacture and research cannabis.
As of September 30, the Therapeutic Goods Administration has approved nearly 17,300 permits for Australians to access medical cannabis under a special scheme set up in 2016.
Cronos Australia declared a $2.9 million loss in fiscal 2019.
Its board includes former federal speaker Anna Burke and former Superloop chief executive Daniel Abrahams.
“We’re very proud of our board and our management team,” Mr Cocks said.