Australia's first medical marijuana company will kick off its 'farm to pharma' strategy by releasing a dope pill

Australian-owned medical marijuana company Phytotech has merged with MMJ Bioscience in an effort to expand from cultivating cannabis to developing and distributing it in pill form.

Phytotech will acquire 100% of the issued capital of Canadian company MMJ Bioscience Inc with the aim of bringing marijuana-based pharmaceutical and nutraceutical products to a global market.

The deal is structured on Phytotech’s scrip share value (based on a pre-deal share price of $0.305 per share) of $15.5 million upfront and an additional $5.185 million in performance shares when certain milestones are achieved.

The “merger of equals” aims to create an expanding “farm to pharma” global strategy.

Phytotech says the transaction will not include any equity raising given it has sufficient funds available to meet the working capital requirements of MMJ until revenues commence.

Revenue from sales of a proprietary gastro-resistant cannabidiol (CBD) pill are expected by July 2015, as well as...

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