Press Release
22 Oct 2024
Spring Sciences Australia has officially signed a groundbreaking Heads of Agreement with Canngea, a Brisbane-based leader in medicinal cannabis distribution. Under the agreement, SSA and Canngea will enter into an exclusive marketing and distribution rights agreement for certain product ranges including the supply of up to 5 tonnes of premium organic dry flower and an extensive range of phytoextract products. This partnership will provide Australian consumers with high-quality, locally grown cannabinoid-based pharmaceuticals, an area traditionally dominated by imports.
SSA’s commitment to cultivating non-irradiated cannabis through its GMP-compliant facility ensures that its products meet the stringent standards required for pharmaceutical-grade applications. This agreement positions both SSA and Canngea at the forefront of the Australian medicinal cannabis market, which is set to see substantial growth.
A New Chapter for Australia’s Medical Cannabis Industry
This agreement represents a key milestone in reshaping the supply landscape for medicinal cannabis in Australia. As local demand for cannabinoid-based phytomedicines continues to rise, SSA and Canngea are set to deliver a superior, Australian-grown alternative to imported products. With the domestic market expected to grow at a 25-30% CAGR through 2029, this partnership comes at a pivotal time.
Canngea, with its healthcare wholesale division servicing over 300 pharmacies, provides an extensive and efficient distribution network, enabling SSA to reach a wide consumer base. With SSA’s expertise in cultivation and Canngea’s stronghold in distribution, the two companies are set to significantly boost the availability of premium medicinal cannabis products across Australia.
SSA’s recent partnership with Verve Dynamics South Africa, a global pioneer with more than 20 years of experience in the manufacturing of high value plant extracts, distillates, and isolates, enhances this collaboration. The SSA-Canngea partnership provides an efficient and effective marketing and distribution mechanism for SSA’s comprehensive range of world-class phyto-extracts exclusively designed for SSA for the Australian Market. The product range includes vapes, tinctures, and other ready-to-use formats.
Key Highlights of the Agreement
• Exclusive Marketing and Distribution Rights: Canngea will be provided the right to market and distribute specific SSA products.
• 5 Tonnes of Organic Cannabis Flower: SSA will supply Canngea with up to 5 tonnes of premium dry flower (both irradiated and non-irradiated), setting a new standard for purity and quality in the Australian market.
• Exclusively Australian Product: SSA’s organic cultivation methods provide Canngea with a product with limited to no current availability in the domestic market.
• Pharmaceutical-Grade Standards: Produced at SSA’s GACP and GMP-compliant Caboolture facility, these products are tailored for pharmaceutical use, ensuring the highest safety and consistency.
• Expansion Potential: As SSA brings its in-house extraction and distillation capabilities online, both companies expect to expand their offerings to include solvent-less cannabis-derived products.
Over time, the collaboration will extend into other important commercial areas including live plant and genetics, AI strategic initiatives, import/export and logistics, and strategic investments.
Investing in Canngea’s Growth
As part of the partnership, the parties are considering strategic investments in one another to further align their interests. As a first step, the parties have agreed in principle that SSA will make an investment in Canngea’s infrastructure to increase storage capacity within its facility that is run entirely on renewable energy. The investment will allow Canngea to accommodate larger volumes, ensuring a consistent supply of products to meet the growing demand. Both companies are dedicated to scaling their operations in line with Australia’s evolving medicinal cannabis landscape.
Building a Phytopharmaceutical Hub in Southeast Queensland
Southeast Queensland is emerging as a key region for medicinal cannabis production and distribution. Canngea’s established network, coupled with SSA’s production expertise, will create a robust supply chain that supports the development of a local cannabis industry. The region’s infrastructure and growing industry presence make it an ideal hub for continued innovation and market penetration.
Executive Insights
SSA Managing Director Dr. Steve Newbery commented on the significance of the deal:
"This partnership with Canngea allows SSA to bring premium, locally grown, non-irradiated cannabis flower and world class extract products to Australian consumers. By combining our cultivation expertise with Canngea’s distribution network, we are enhancing the quality of products available in the Australian market."
Canngea CEO Ryan Ballantyne added:
"SSA’s commitment to pharmaceutical-grade production aligns perfectly with Canngea’s mission to provide the highest quality medicinal cannabis. Together, we are setting a new standard for excellence in the Australian market."
Shaping the Future of Australian Cannabis
As the Australian medicinal cannabis industry continues its rapid expansion, the partnership between SSA and Canngea offers patients access to superior, Australian-grown products that rival the best global offerings. With Canngea’s distribution capabilities and SSA’s premium cultivation processes, this collaboration is set to redefine industry standards.
About SSA
SSA is an Australian leader in the cultivation and production of premium cannabinoid-based pharmaceuticals. Operating from its GACP and GMP-compliant facility in Caboolture, SSA is dedicated to delivering safe, effective, and high-quality medicinal cannabis to both Australian and international markets.
About Canngea
Founded in 2017, Canngea is a leading medicinal cannabis distributor in Australia, serving over 300 pharmacies nationwide. With a strong focus on quality, compliance, and accessibility, Canngea has quickly become a key player in the growing medicinal cannabis sector.
Contact Information
For media inquiries, please contact:
Caity Knaggs
info@springsciences.com.au
Perri Hogan
perri@canngea.com.au