License Approvals Position Cannabis Company to Fast Track Commercialisation

On the 18 May 2015 Erin Resources (ASX:ERI or the Company) announced it had entered into a binding heads of agreement with the option to acquire 100% of the issued capital of MGC Pharmaceuticals (MGC), a medical and cosmetics cannabis company.

Today Erin Resources announces that MGC has been granted key commercial licenses to grow, process, import and export Cannabis Sativa L (Hemp) and its products, including Cannabidoil (CBD) resin in Slovenia, Europe.

The granting of these licenses makes MGC the first ASX related vehicle to be granted licenses to grow and sell Cannabis Sativa L (Hemp) and CBD resin in the European Union (EU).

The first license enables MGC to establish a growing operation in Slovenia, where it can produce an unlimited amount of Cannabis Sativa L. Further to the license to grow the Cannabis Sativa L MGC has also been granted a license to extract and export the Cannabidoil (CBD) resin from the Cannabis Sativa L at the growing facility.

The license to extract on site makes MGC the first company in Slovenia to both grow and extract the CBD resin product in the same location. Until now companies wishing to extract CBD resin had to export their crops overseas for the extraction process, which is less efficient and encounters higher costs.

Approval of licenses fast tracks MGC’s commercialisation and cash-flow break-even is expected within 12 months and revenues in excess of US$10m expected within first full year of operation, CY2017.

MGC is currently in advanced negotiations for a commercial CBD off-take agreement with a major European distributor.