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National | Business

The grass is greener - export potential for NZ cannabis

New Zealand could become a leading world producer of medicinal cannabis after a company in Ruatoria announced its intent to produce $160mil worth of medical cannabis for export to the US.

Hikurangi Cannabis has signed a Letter of Intent with a Seattle-based company, Rhizo Sciences, to produce 3,000kg of medicinal cannabis next year, rising to 12,000kg by 2021.

The conditional offer is subject to the cannabis law change expected to pass in New Zealand later this year.

Rhizo Sciences Co-Founder and Vice President Dallas McMillan says Hikurangi Cannabis has the potential to become a leading world producer.

"The global demand for legally produced CBD is growing rapidly and producers can't keep up. Hikurangi Cannabis is ideally positioned to deliver a world-class clean, green product to supply our customers next year.”

Company director Manu Caddie says the deal will increase employment levels.

Hikurangi Cannabis managing director Manu Caddie says the deal is also expected to increase employment levels in the East Coast.

The region’s unemployment levels are currently well above the national average.

“We are very excited about the impact of this new industry for our communities on the Coast and for New Zealand as a whole," says Caddie.

While the company is still in the establishment phase, it is well enough advanced to complete construction and to commission pharmaceutical grade growing and processing facilities before the end of this year.

Next month Hikurangi Cannabis will also open an initial public offer via the PledgeMe crowdfunding equity platform.