The approved debt facility from the Commonwealth Bank of Australia (CBA), paves the way for further work at the Shepparton site. Works include outdoor and indoor grow facilities, a post-harvest facility, an extraction plant and packaging, storage, and national distribution centre.
Several local jobs are also expected to be created during the construction phase over the next 12 months, establishing Cannatrek as a major employer in the area.
The Shepparton development will produce plant-based medicinal products, with the capacity to yield between 5 and 10 tonnes of dried premium-grade flower per annum.
Cannatrek CEO Tommy Huppert described this as a breakthrough in an industry that heavily relies on imported medicinal cannabis. “Our Shepparton facility dramatically reduces the need for imported products and secures an essential low-cost medical supply chain for Australian patients.”
The company has become one of the largest suppliers of medicinal cannabis in Australia since it was founded in 2016, capturing a 25 per cent share of the Australian medicinal cannabis market, and providing consumers with over 30 products, sold via pharmacies, doctors, and digital healthcare providers.
“Our Shepparton facility will enable Australia to continue innovating in quality plant-based medicines for people experiencing chronic pain, anxiety and insomnia, while also assisting with medical conditions including epilepsy, Parkinson’s and terminal illnesses,” Mr Huppert said.
The facility enables Cannatrek to be involved in building its own “seed to patient” supply chain, bringing together the network of all the entities involved in the production and national distribution of therapeutic medicines from one site.
Company CFO Brett Schwarz said, “To have a Tier 1 bank in the CBA supporting our projects in Shepparton is a tremendously positive sign of growth for our industry and the general health sector. It should give the Australian public confidence we are moving forward with a growth strategy to boost our local economy and deliver quality of life therapies to many Australians.”
Cannatrek continues to record rapid sales growth with over 18 months of consecutive monthly profits, in a global market estimated to be worth $80 billion (US$62.6 billion) by 2024.