The primary objective of the Cann Global Ltd is to grow and cultivate hemp legally for research and development of medicinal cannabis products to serve an incrementing demand in Australian and global markets.
The company holds 100% shares of Medical Cannabis Ltd and has a management agreement with Medcan Australia Pty Ltd which operates a cultivation and R&D business and soon to be a Medicinal Cannabis product distributor in Australia.
T12 Food Division of Cann Global Ltd (ASX:CGB) has become an official supplier to Costco and secured its first purchase order of 6,900 bottles of VitaHemp, certified organic hemp oil capsules, from Costco Australia.
Costco Australia is part of the global Costco wholesale corporation, which almost doubled its profits in the past financial year due to an additional warehouse, triggering more sales and better operational leverage. The requisition from Costco is a significant debut purchase order, with other T12 products expected to follow soon.
Investors have reacted emphatically to the deal with a 13% increase in shares today to an intra-day high of 3.5 cents, the highest in 12-months.
The corporate head of Cann Global’s Ltd’s food division, Eli Levy said that it is a crucial step towards building a vigorous relationship with the global wholesaler which currently has warehouses in 11 locations in Australia and a 12th to open soon in Perth. The T12’s business model for Australia and Asia is compatible with Costco’s member first policy and high-quality ethics.
Executive chairperson Pnina Feldman of Cann Global Ltd says she is very excited to receive the first order from Costco, one of Australia’s largest food retailers, and is evident of the hard work which has gone into producing the high-quality products.
The Hemp seed oil capsules are a natural and plant-based alternative to fish oil capsules without the fishy after taste.
Costco is an American multinational company that was ranked the second-largest retailer in the world after Walmart in 2017 and operates a chain of membership-only warehouse clubs.