CONSTRUCTION of a medicinal cannabis cultivation site near Mildura is now “substantially complete”, the company behind the project says.

Cann Group, in an update to the Australian Securities Exchange, told investors it was targeting this month for a handover from the construction partner.

Being built at a cost of $112 million for its first stage, the site was described by Cann as a “state-of-the-art production facility”.

It was expected to create 130 new jobs once commissioned.

The company said two sets of licences and permits, issued by the Office of Drug Control (ODC) and Therapeutic Goods Administration (TGA), would be the last steps required before production in Mildura can ramp up.

Cann said the ODC had already inspected the site and would carry out another inspection soon, while an audit process was under way with the TGA.

It also said mother plants were being grown at another Cann facility.

Cann Group, which was established in 2014 and based in Melbourne, announced the Mildura project in March 2019.

By mid-2020 construction slowed as the company sought more funds from investors and COVID-19 restrictions prevented specialist contractors from Europe from accessing the site.

However, by the end of 2020, Cann had raised an additional $40 million from investors and secured a $50 million bank loan from NAB, allowing progress to resume.

– MICHAEL DIFABRIZIO