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Cann Global To Expand Medical Cannabis Business In Asia

Australia-based medical cannabis company Cann Global Ltd. said it will expand its business in Asia and has incorporated an Asia-focused subsidiary, Cann Global Asia Pty Ltd. or CGA.

According to Cann Global, Asia is expected to be a very large market for CBD hemp products.

Cann Global will hold a 55 percent majority shareholder position in CGA. David Evans and Christopher Waldron, CGA's management partners, will each hold a 22.5 percent minority stake in the company.

The new subsidiary will undertake legal broad-acre industrial cannabinoid or CBD hemp cultivation and processing as well as legal indoor cannabis cultivation and processing operations in South-east Asia.

Cann Global said it expects the potentially low cost environment in Asia to enable CGA to produce CBD hemp biomass, CBD refined oil and CBD isolate at some of the lowest production costs in the world.

CGA has signed a deed of agreement with Sun Agriculture Promotion Industry And Commercial Co., Ltd in Laos to use its hemp licenses to cultivate and process CBD hemp in that country.

Sun has been issued two licenses in Laos that allows it the right to cultivate, purchase, process, retail, and export hemp products in Laos. Sun has warranted it will maintain and operate these licenses for a minimum period of 10 years. CGA will undertake the cultivation.

CGA is also actively seeking participation in medical cannabis operations in Thailand.

In conjunction with hospitals, universities, and Thai traditional medicine practitioners, CGA is seeking to provide extraction and manufacturing services for pharmaceutical grade products for retail in Thailand. The company expects to make an announcement regarding Thailand before the end of 2019.

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