Helius founder and ex-advertising guru Paul Manning acknowledged the pace of the Misuse of Drugs (medicinal cannabis) Amendment Bill has appeared to stall after its second reading in July but he is optimistic its third and final reading will pass next month.
The bill will make it legal for people suffering from terminal disease and chronic pain to legally access cannabis-based products. Its passage remains the last hurdle for Helius’ business model as the company commits resources to a one-hectare growing site in East Tamaki Auckland.
“We are a bit frustrated the Government is dragging its heels over this and are not sure what purpose it serves.
“Having said that, we are planning for a mid 2020 start to production. It is a later scenario but we do have plenty do to between now and then,” Manning said.
The bipartisan agreement on cannabis reform appeared to lose some momentum earlier this year when National said it would drop its support for the bill and put forward an alternative version.
National leader Simon Bridges said the Government’s bill ignored the details about how a medicinal cannabis system would operate in practice.
But expectations are the bill will still pass through Parliament to become law but not before the end of the year.
Manning said National’s dissent had, if anything, given more clarity to legalising the process.
“Once it has passed its third reading it requires Royal assent to become an Act and then it could take 18 months to draft up the actual regulations.”
Meantime, Manning expect Helius to be granted its licence in the near future.
Helius’ major backer is Guy Haddleton, a founding funder of Xero, who has just seen the other software company he founded, Anaplan, start trading on the New York Stock Exchange earlier this month now valued at $4.9 billion.
“Guy is also going to be Helius chairman and we are very fortunate to have someone on board who has launched not one but two billion-dollar-plus businesses.”
The funds have hastened construction of the company’s high-security hydroponic growing unit in Auckland.
With a growing area of 6500 square metres the facility has the capacity to produce 50 tonnes of medicinal cannabis a year from 140,000 plants, with an estimated value of $700 million.
More than 1000 square metres of laboratory facilities are already developed with a commercial cannabinoid extraction and manufacturing unit next door.
High grade cannabis seeds are to be imported from North America in the new year.
“This is probably the largest completely indoor growing facility in the country and has the ability to expand to the adjoining 1ha site.”
While initially targeting the NZ therapeutic market, the plant’s capacity will more than exceed NZ demand and export production will follow quickly, Manning said.
He estimates the plant will employ 120 people and Helius is building up a database on people with hydroponic and horticultural skills who want to move into the industry.
“We have not started recruiting yet but we are confident there is the depth of skill out there in the NZ horticultural industry, such as people already skilled in hydroponic capsicum and tomato production.”
Interest in NZ’s cannabinoid market is intensifying with East Coast company Hikurangi Cannabis Company being issued a licence to grow in late August near Ruatoria.
