In Australia, the NSW government is spending $9 million on three trials for medicinal cannabis, but Mr Smith believes Victoria is most likely to legalise the drug once federal laws governing distribution and production are passed.
Mr Smith acknowledged the majority of Australia is governed by conservative governments
Prime Minister Tony Abbott supports state-based trials of the drug, but has dodged suggestions of a national experiment.
A private members bill seeking the formation of a regulator to oversee the production and distribution of medical cannabis is expected to be debated in the Senate as early as next month.
It originally planned to raise $5 million through the issue of shares to investors, but strong demand forced it to issue another $900,000 worth of stock.
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