Crowdfunding campaign launched to raise capital for Taranaki-based medicinal marijuana company

Friday, 7 December 2018

Greenfern Medicinal Marijuana has begun a crowdfunding campaign to set up a company in Taranaki to grow and develop products for the health market. (File Photo)

A Taranaki-based medicinal marijuana company has launched a crowdfunding campaign in order to secure financial support to get the venture growing.

Incorporated in April, Greenfern Medicinal Marijuana Limited (GMM) is based in Normanby, South Taranaki and has a goal of obtaining a foothold in New Zealand's emerging medicinal cannabis industry.

'Greenfern intends to operate as a fully comprehensive grower, manufacturer and supplier of affordable, top quality medicinal cannabis products,' the company said in a statement.

'We want to help suffering New Zealanders who seek an alternative, more holistic approach to their medication intake.'

GMM is in the process of working with the Ministry of Health regarding the required licence. In order to meet the necessary requirements, the company needs to raise money to assist in the process.

On Thursday, the venture launched a crowdfunding campaign.

* Medicinal cannabis cultivation licence issued to East Coast company for research purposes

* New medicinal cannabis products on the horizon**

The site said it wanted to raise a maximum of $2 million. Shares were priced at $1 each, with a minimum investment amount of $500 for individuals and $1000 for joint holdings, companies and other structures.

A similar strategy by Hikurangi Enterprises in May received huge public interest, which ended up crashing the PledgeMe website.

Hikurangi Enterprises has a Ministry of Health-issued licence to grow hemp on private land in Ruatoria, near Gisborne.

GMM does not intend to sell to customers directly, but would be a business to business operation.

While production and sales would be guided by legislation, it is possible the company could provide materials to other businesses to be used in tablets, vaporisers, creams or oils.

The location for GMM's Normanby operations is on land adjacent to the hydropower station, which the company believed would give it an economic and environmentally sustainable advantage over time.

'Our partnership with the hydro power station land owners allows us access to power at discounted commercial retail rates, giving us lower production costs, which will also benefit the consumer.'

A bill to legalise cannabis for medicinal reasons has been through the health select committee and had its second reading in Parliament on November 29.

Medsafe general manager Chris James said that for security reasons, details of controlled drug licence holders or applicants were not disclosed.

Currently, licences for cannabis can only be issued under the Misuse of Drugs Act to cultivate or extract cannabis for medical or scientific research, including clinical trials.

Growing for any other purpose, including commercial cultivation, remains illegal.