Australia's largest medicinal cannabis grower is packing its bags

[lookinggoodguys]

http://www.businessinsider.com.au/australias-largest-medicinal-cannabis-grower-is-packing-its-bags-and-moving-to-the-us-2016-12

 

GEOFF WINESTOCK, AFR.COM

DEC 5, 2016, 8:32 AM   

 

 

Australia’s largest medicinal cannabis grower, which is backed by finance sector identities Barry Lambert and Chris Cuffe, has decided to stop production here and move to the US where it says the legal framework is much more favourable.

 

Ecofibre recently completed a $12 million capital raising with cash from Mr Lambert and Mr Cuffe. But it will close a business that has grown cannabis on 340 acres in the Hunter Valley in NSW – used for medical experiments on rats at the University of Sydney during the past year – and move to Kentucky in the US.

Mr Lambert, a BRW rich-lister who last year gave $34 million to Sydney University for research into medicinal cannabis, says a federal law passed this year that was supposed to legalise medicinal cannabis has so many restrictions that it is practically unworkable. He says the law goes well beyond what is required to prevent diversion to recreational use and Ecofibre has made a commercial decision not to apply for a licence under the new law.

 

“We have an Australian company, Australian seeds, Australian shareholders, but we have to go to America because of the legislation,” Mr Lambert said.

Ecofibre is expanding rapidly in the US market, where medicinal cannabis is now legal in over 30 states, including five which approved propositions to that effect at the last US election.

Black market

 

Mr Lambert says he has has gone public with his concerns because in Australia sick people looking for pain relief and treatment for diseases from epilepsy to multiple sclerosis contact him almost every day because they still cannot access medicinal cannabis. “It is driving people to the black market,” he says. Despite the legal uncertainty, Mr Lambert ‘s family is using cannabis extract to treat his granddaughter for a rare form of epilepsy.

 

The regulations passed in October require that a grower must prove in advance that they have a specific manufacturer lined up who is supplying for specific approved users. But this is a Catch 22 because it is almost impossible to get permission to use cannabis. In the US growers are licensed to operate anywhere in that country and can then look for markets, including for export to Australia.

 

Another problem with the Australian law, Ecofibre says, is that medicinal cannabis must be grown in costly high-security glasshouses. Ecofibre says this is a step back because it has been allowed by NSW and Queensland law for some time to grow cannabis outdoors on condition it only uses breeds that are very low in THC, the ingredient that makes people high. It would require complicated refining to turn the cannabis grown by Ecofibre into something that can be smoked for recreational purposes.

 

Mr Lambert says it is bizarre that low-THC cannabis for food or for fibre is legal but there are restrictions on growing exactly the same crop if it is theoretically for medicinal purposes. “The law takes a different approach based on the purpose for which it is is grown,” Mr Lambert says.

 

Ecofibre already has 500 acres under cultivation in Kentucky, where it is strongly backed by Republican Congressmen, including Senate majority leader Mitch McConnell, and former tobacco growers. It expects to plant 1200 acres next year and is also about to launch a branded low-THC cannabis product. It hopes for an initial public offering within two years.

 

A spokesman for the federal Department of Health said it had received several applications for licences under the new regulations and Ecofibre was free to apply. The department said that, under the Single Convention on Narcotic Drugs Act of 1961, Australia was obliged to prevent stockpiling of narcotic drugs. “As such, the Australian legislation is designed to prevent cultivation on ‘speculation’ that there will be a market. Hence the need for good business planning and contracts,” the spokesman said.

The department said the regulations on security could be relaxed for low-THC cannabis. “It would be possible to grow medicinal cannabis either indoors, in a glasshouse, or under field conditions,” the spokesman said.

 

At the moment no state governments have fully legalised use of medicinal cannabis, although the laws are afoot in Queensland and Victoria and the NSW government is doing three clinical trials that could open the way for certain approved drugs. However, because of Australia’s tight laws the cannabis used in the NSW trials on humans has to be imported from Canada and the Netherlands.

 

https://cannabis.community.forums.ozstoners.com/topic/76314-australias-first-medicinal-cannabis-farm-in-nsw/page-2?do=findComment&comment=496049 I wonder how Lucy Haslam is going if others are leaving...

Edited January 11, 2017 by lookinggoodguys

[Indycar]

You can't blame them. It'd be damn near impossible to do much Research & Development, within Australia's borders. At least the Yanks aren't being hobbled so much anymore and can go hard out at it.

 

As a Country. We are so fucking retarded that we missed the boat with anything Cannabis/Hemp related some 30 odd years ago when interests sprung to life in Europe.

[kaneriley227]

its quite amazing tho, I recently applied to grow opium poppys here in SA, spoke to pirsa about it, just waiting to find a manufacturer who will take us on as we can grow over 1000ha of it, the only security needed to grow opium is to have large signs on our fences, we could keep our standard stock fencing,

[Carnage]

to the best of my knowledge in america , when cannabis was 100% illegal in every state, a whole heap of government workers got violently attacked by civilians and criminals, just to wake them all up.

 

is this what will happen in Australia before they decide to stop playing god with out legal marijuana ?

 

because if it is what is needed, we need to know now. people will do it.

 

Always some asshole in government that doesnt like cannabis or wants to play on power too much because they are greedy , that prevents these kind of laws from being changed for the public.

[Ford Fairlane]

It wil be interesting to see what happens with Susan Ley out of the picture now

[Ozzy420]

It wil be interesting to see what happens with Susan Ley out of the picture now

With her boss is still in power there wont be much if any change imo...

[Sir PsychoHashy]

It's my belief that 1, or maybe 2, American corporate entities were involved in backroom deals with Turnbull & Co before any legislation was drawn up, and that the purpose of that legislation at a Federal level was to provide an opportunity for them and American Pharma to make money, and to ensure that nobody else gets to join the party.  Fuck I hope I'm wrong, but it's looked that way to me since day dot, and these guys throwing in the towel has only deepened that perception for me.

 

Sad thing is that whilst these guys were looking at profits, it did at least sound like they believed in canna and wanted to see it do some good, and I doubt that the really big boys who end up growing it are going to give a fuck about anything but dollars, and we all know how much American Pharma cares about the health outcomes of it's end users

 

Can someone please give me an optimism pill, cause I'm sick of feeling negative about this

[brick]

This shit has been happening for years. It is nothing new. Many companies are forced off shore by the never ending red tape and delusional regulations put in place by inept governments. And this LNP is the most INEPT rag tag bunch of lying thieves that have ruined this once great country. When businesses become worried about how a government is performing then we are in deep shit. And that is what I heard on the radio this morning. Many businesses have lost confidence in this self serving greedy bunch of arseholes who are in charge. Yeah I am a bit peeved!

[brick]

It wil be interesting to see what happens with Susan Ley out of the picture now

Don't worry the slut will do a Monica on Turdbull and all will be forgiven. gggggggggggggrrrrrrrrrrrrrrrrrrr

[merl1n]

Sorry SPH, No optimism pill available here, unless you go see Big Pharma, they might help with a chemical concoction

Our poli's in Canberra will support them, but they won't support us. That's the Liberal Govt working for the people. NOT.

"Liberal", ppfftt, what a joke