Medicinal cannabis firm MMJ Phytotech is on a high after securing a licence from Canada's health regulator to grow marijuana for medical purposes.
MMJ said it will grow the crop at its facility on Vancouver Island in Duncan, British Columbia, which has a cultivation area of 929 square metres.
Shares in MMJ Phytotech gained 6.5 cents, or 36.1 per cent, to 24.5 cents, after soaring as high as 30 cents.
"The granting of the Duncan MMPR (marijuana for medical purposes regulations) license is a significant milestone for MMJ, as it underpins the evolution of our `Farm to Pharma' strategy," managing director Andreas Gedeon said.
"As the first Australian-based company to receive a Canadian production licence, we are very encouraged by Health Canada's endorsement of our facilities."
MMJ said the Duncan licence not only positioned the company as a supplier of medicinal cannabis, but also for a potential regulated recreational market in the future.
The Canadian licensing system also allows for the import and export of medicinal marijuana across national borders.
MMJ said the granting of the licence in Canada would also enhance its credibility when seeking to enter new markets.
The company's Canadian subsidiary, United Greeneries, is now focusing on ramping up production at the Duncan Facility.
