Cannabis poll has no effect, Rua says

AUCKLAND: Rua Bioscience chairman Trevor Burt says the outcome of the cannabis referendum should not have an impact on the NZX debutant, regardless of whether it supports or opposes change.

Shares in the medicinal cannabis company listed on the NZX at a healthy premium, trading at one point at 75c from its 50c issue price.

Tairawhitibased Rua Bioscience is the first full equity listing since Napier Port’s debut on the exchange early this year and the first to have originated from a Maori community.

The only other listed medicinal company is Cannasouth, which joined the NZX in June last year.

The Rua offer was for 40 million shares at 50c/share, accounting for a total 28.6% stake in the company.

The company aimed to raise $20 million through the IPO, giving the overall business an implied value of $70 million.

There was not a lot of clinical evidence around as to the efficacy of medicinal cannabis, Mr Burt said, but there was a mass of evidence that suggested it could be used for the treatment of spasticity and pain.

‘‘That’s the opportunity,’’ he said.

He said the ‘‘art’’ would be in applying certain types of cannabis cultivars to certain medical conditions.

‘‘Our focus will be on the genetics and the seed IP that we are developing,’’ he said.

‘‘That’s where the future lies, as opposed to big warehouses of cannabis plant that have been chopped up and sold.’’

So does a yes or no result from the referendum — the results of which are due out next week — mean anything for Rua?

‘‘No it does not,’’ he said.

‘‘And we have no intention at all of going into that commercial market,’’ Mr Burt said.

‘‘Rua will operate in the research, cultivation, extraction and manufacturing parts of the medicinal cannabis supply chain,’’ the company’s offer document says.

Proceeds from the offer would be used to fund investment in Germany and other international target markets, including potential investment in New Zealand branding for those markets, it said.

A quarter of the 25% of shares were allocated through a priority offer for Tairawhiti residents, Waiapu Investments Shareholders and other people closely associated with the business. — The New Zealand Herald