A medical marijuana company is preparing to join the share market as debate over legalisation fires up.
Perth-based Phytotech Medical will target regulated medical cannabis markets in the US, Canada, Israel and Europe, and hopes to introduce products to Australia and New Zealand if laws permitting marijuana's use are introduced.
The company plans to work with farmers in the United States and Uruguay to set up indoor and outdoor marijuana crops.
"Phytotech will be Australia's first ASX listed medical cannabis company and is strategically positioned to be the company of choice in the field," it said ahead of its market debut on Thursday.
Phytotech had planned to raise $5 million through the issue of shares to investors, but strong demand led it to issue more shares for an extra $900,000.
But it could be some time before the company grows and sells products in Australia, as debate around the merits of medical marijuana continues to rage.
NSW is spending $9 million on three trials for medicinal cannabis to treat terminally ill patients, children with epilepsy, and cancer patients suffering from chemotherapy-related nausea.
The NSW government has indicated it could grow its own cannabis crop if it is unable to overcome logistical hurdles in importing cannabis products from Europe or the US.
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 February.
The bill was introduced this month by Richard di Natale from the Greens, and co-sponsored by Labor's Melissa Parke and government backbencher Sharman Stone.
Phytotech is valued at $8.9 million ahead of its listing on the market.
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