Malta Enterprise approves 4,000 sq.m medical cannabis facility

Australian company says it has permit for 4,000 sq.m of land for medical cannabis cultivation facility

Under the agreement, the company will be permitted to produce all THC and CBD strains of medical cannabis
Under the agreement, the company will be permitted to produce all THC and CBD strains of medical cannabis

Malta Enterprise Corporation has awarded an Australian medical cannabis corporation 4,000 square metres of land to construct a state-of-the-art, fully licensed medical cannabis production and cultivation facility.

MXC (MGC Pharma) announced that it had been given approval by Maltese government for full medical cannabis production and cultivation facility in Malta, a statement that seems to run counter to the prime minister’s previous claim to allow “only small-batch cultivation for research purposes”.

MXC to date is one of five entities, and the only Australian company, approved to build and operate a fully-licensed medical cannabis facility in Malta.

The Maltese government denied having made a “change in policy” on cultivation, which is excluded by the proposed medical cannabis law.

“The only exception agreed by Parliament is within the context of production for medicinal products or for research or scientific purposes. The article wrongly alludes that cultivation will occur on the premise of sale of flower buds... the government will prohibit cannabis cultivation on its own...

“On the other hand, flowers and flower buds in dosage forms resulting from the processing of cannabis will be permitted specifically for medicinal purposes. The activities will be carried out under GMP conditions and in line with the requirements of international institutions regulating this sector, as required by the new Maltese legislation.”

The project will be allocated within a closed and secured space in existing industrial areas of Malta Industrial Parks.

The contract terms require the company to comply with all relevant local licenses and permits, which will be governed under the final legislative changes to Malta’s medical cannabis laws.

Under the agreement, the company will be permitted to produce all THC and CBD strains of medical cannabis, expanding the commercial opportunity for MXC to develop additional medical cannabis pharmaceutical products into key European and global markets, which derive benefits from THC in addition to CBD.

Mario Galea, CEO, Malta Enterprise Corporation said: “Malta Enterprise welcomes MXC among its community of Foreign Direct Investors establishing commercial operations in Malta. We are pleased to host investment from Australia, a country with such close business and community links to Malta.

“The medical cannabis sector is a new sector which will continue to enhance our economic growth, which is exceeding 6% annually. This new sector is open exclusively for the production of Cannabis for medicinal, research and scientific use.”

One of the world’s largest cannabis companies is also eyeing Malta’s prospective rules on the cultivation of medical marijuana to set a foothold on the island.

Nuuvera has explored plans to set up a presence in Malta, specifically to upgrade a laboratory facility on the island as part of a $5 million business expansion plan in Europe – and has disclosed the existence of a letter of intent in Malta for a joint venture.

“Nuuvera has developed strategies to expand in several foreign cannabis markets, including Germany, Israel, Italy and Malta. It intends to focus on low-cost, high-quality inputs and build GMP-certified labs to create products and formulations for distribution to local and global markets,” the company said in its most recent company filing.