Waikato Business News RECAP 2019

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WAIKATO FIRM POISED FOR MEDICINAL CANNABIS WAVE Waikato Innovation Park-based medicinal cannabis firm Cannasouth made headlines when it listed on the New Zealand Stock Exchange in June. THE STORY THEN: Aug 1 - Waikato firm Cannasouth has been building a big surfboard. That’s because it’s got a big wave to catch. The wave is medicinal cannabis and the analogy comes from the company’s chief executive, Mark Lucas. Cannasouth recently listed on the NZX, the first company to do so in two years, and the first medicinal cannabis company to take the step. It recently appointed a new product development manager, scientist David Gill, and is well underway with developing cannabinoid products using its labs at Innovation Park and Hamilton East’s secure growing facility. Timing is everything, and the introduction of the Misuse of Drugs (Medicinal Cannabis) Amendment Act last year has been followed by the release for feedback in July of a discussion document aimed at setting up a regulatory scheme, with Cannasouth set to be among those submitting before the August 7 cutoff. “It’s like surfing,” Lucas says. “The big wave surfers get on the weather maps and they know when there’s a storm out there. It might be a week before the waves arrive. They fly to to get those waves. But to surf big waves you need a big board. “We were out there and we realised, well this wave’s pretty big; to compete, or to get on the wave, we need to build a big board and that’s raising capital.” The listing in June at 50c a share was oversubscribed and saw the company raise $10 million. Lucas is at pains to stress they are in for the long haul, after being frustrated by some negative media commentary around the listing, which he says implied the cofounders and early investors would look to quickly sell their shares. The price has since steadied around 37c at time of writing, and Lucas says the share price may have been affected by the commentary, as well as potential confusion around the medicinal cannabis scheme and the adult recreational debate. Cannasouth has been heavily involved in research, developing its own IP, but Lucas and chief operating officer Nic Foreman recognise the commercial realities as well. “There’s going to be a lot of competition but the space itself is also looking like it’s going to be rather large.” The medicinal potential of cannabinoids has been touted as potentially helping with a range of conditions from anxiety, through inflammation to epilepsy and Crohn’s Disease among others. RESEARCH HAS BEEN A FOCUS FOR CHIEF EXECUTIVE MARK LUCAS AND THE CANNASOUTH TEAM. Exporting is part of Cannasouth’s plan and it intends to take a broad approach in the market; while its focus has been on developing medicines, there is also potential in neutraceuticals potentially including fortified waters and sports recovery drinks. The “holy grail” would be to come up with their own medicine that can treat a specific condition and be “novel and unique”. THE STORY SINCE: In August, Cannasouth announced a longterm strategic joint venture (JV) with Aaron Craig and his family (Craig Family Interests) to construct and develop a world-class cannabis cultivation facility in Waikato. The JV will construct and operate a medicinal cannabis and hemp cultivation and production facility, which will service and supply Cannasouth’s production requirements. It is expected to be fully operational by mid-2020. Also in August, Cannasouth harvested its first crop of medicinal research cannabis from its purpose-built growing facility in Hamilton. By September, the total number of individual registered investors in Cannasouth passed 2000, up from the approximately 1450 following its listing in June. At the start of October, Cannasouth entered into an agreement to acquire a 60 percent shareholding in Hawke’s Bay-based Midwest Pharmaceutics NZ Limited for a purchase price of $1.32 million. The acquisition will add significantly to the suite of licences that can be utilised by the Cannasouth group. In early December, Cannasouth shares were trading around 63c. GET THE WAIKATO’S AWARD WINNING ELECTRICAL EXPERTS ON THE JOB TODAY MASTER ELECTRICIANS EXCELLENCE AWARDS 2019 SILVER FOR PROJECT “HILTON” $1-5 MILLION RAISING THE BARR IN ELECTRICAL SERVICE WHERE QUALITY & SERVICE COUNT For your next Electrical Project talk to the award winning team at RichmondBarr Electrical Commercial Electric Projects Electrical Service Heavy Industrial Communication & Automation Design & Bulk Projects Commercial Kitchens MORE THAN JUST ELECTRICIANS Call us 24 hours 07 847 9845 service@richmondbarr.co.nz www.richmondbarr.co.nz 203710AA 8 WAIKATO BUSINESS NEWS - RECAP December 2019
GLOBAL MARKET GROWING FOR AWARD-WINNING WAIKATO FIRM THE STORY THEN: April 30 - The awards keep coming for a Waikato firm that has a growing presence in China and is eyeing Latin America for its natural health products. Quantec has taken out the supreme award at the annual Natural Health Products NZ awards for the second year in a row, also adding the Cawthron Institute Innovation award. It won with a nutraceutical that combines flaxseed oil with bioactive dairy protein. Milk Protein & Flaxseed Oil Laitap quickly sold out its first 90,000 run in China, and a second run will soon be ready to go. Established in 2009, Quantec specialises in extracting high-value bioactives from natural ingredients which are developed into proprietary formulations for use in human and animal products. Its patented Immune Defence Proteins (IDP) product is used by its customers to make products such as dietary health supplements and skincare products. THE STORY SINCE: An exclusive 20-year deal with China-based Holon has cemented Quantec’s long term presence in the Chinese market. The agreement will see Quantec supply a growing volume of its Immune Defence Proteins product to Holon for use in its mother baby health and nutrition products. Holon is a premium distributor and a significant player in the Chinese mother baby supplement market – worth approximately $4.2 billion. Meanwhile, a study into IDP will investigate whether the product can deliver digestive health benefits by improving the intestinal barrier. A Palmerston North-based research team has received a $100,000 investment from the Ministry of Business, Innovation and Employment’s High-Value Nutrition (HVN) National Science Challenge and Quantec. WINNING TEAM: FROM LEFT, RAEWYN MCPHILLIPS, CICI ZHOU, COLIN OGLE, KATHARINE ADAM AND ROD CLAYCOMB AT THE AWARDS NIGHT. Experience care as it should be, experience the Braemar way. LET THE CAMPAIGNING BEGIN THE STORY THEN: Aug 1 - Hamilton City Council chief executive Richard Briggs is asking some big questions as this year’s local body elections loom. Questions like, “What role should Hamilton City Council have (if any) in affordable housing?” And: “What position should our council have on climate change?” And, really pushing it: “What’s your vision for Hamilton?” This is just a sample of posers for potential candidates included in a pre-election report called Shape your City, launched in July. Part of the purpose of the report is to engage, not only with candidates but with voters. Hamilton voter turnout during local body elections has been poor, and the report is not only concerned with sharpening thinking around the election but is also part of a new approach to fostering community engagement more generally. “My goal is that we get as many individuals with as many diverse views as possible standing so that we can have the community engaged, have some opportunity to really test whether or not these individuals are going to stand up and actually shape the city in the way they are doing it.” HAMILTON CITY COUNCIL CHIEF EXECUTIVE RICHARD BRIGGS HAS SOME QUESTIONS ON HIS MIND. THE STORY SINCE: Voter turnout rose in Hamilton, from 33.6 percent in the 2016 election, which was the lowest return of any city, to 39.43 percent. That meant it bucked the trend - the average voter turnout across the country was just above 41 percent, down from 42 percent in 2016. The election also saw Paula Southgate replace Andrew King as mayor and several fresh faces on council. Braemar Hospital is one of the largest private surgical hospitals in New Zealand, and it’s here in Hamilton. With more than 100 world class specialists, 10 state-of-the-art operating rooms, 84 beds including 32 private rooms, at Braemar you’ll receive the highest level of care. Choose the very best. Choose Braemar. braemarhospital.co.nz Waikato Branch – Upcoming events/courses The Institute of Directors supports and enables directors to add value to their organisations and wider communities and prepare them to positively transform the future. Governance Development Programme The Governance Development programme is returning to the Waikato, in April 2020. Learn how to apply the principles of governance in organisations in this short-session course. You will hear the personal experiences of directors and board chairs, shared by facilitators and fellow participants. Express your interest in the programme to Megan Beveridge, Waikato Branch Manager, The Institute of Directors. Megan Beveridge Branch Manager waikato.branch@iod.org.nz 021 358772 www.iod.org.nz Waikato branch is kindly sponsored by: J1121P WAIKATO BUSINESS NEWS - RECAP December 2019 9
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Waikato Business News RECAP 2019

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