Cannabis startup seeks $2m for expansion

By Mark Pownall

03/11/2023 – 10:00

Perth-based healthtech startup MediCann Health is crowdfunding to launch a medicinal cannabis-focused pharmacy in Western Australia.

Matt Shales

Perth-based healthtech startup MediCann is looking to raise almost $2 million through crowdfunding to expand its products and launch a medicinal cannabis-focused pharmacy in Western Australia.

The company has a diversified group of cannabis-related businesses, including medical consultations, medicine and non-prescription products such as food and wellness, and had $3 million revenue in the past financial year.

The raising, through crowdfunding platform Birchal, offers up 2.9 per cent of the company and, if successful, values the company at almost $70 million.

Founded in 2019 by chief executive and majority shareholder Matthew Shales, MediCann’s first clinic opened in West Perth in 2020 for physical appointments on top of telehealth services. A year later it launched medicinal cannabis products under the Maali brand.

MediCann has also recently launched a new medicine brand BOB (Buds On a Budget), which it claims is one of the most affordable cannabis flowers on the market.

Some of the funds being sought would be used to keep up with the existing demand for MediCann’s medicines as well as further innovation and the launch of new formulas and delivery mechanisms.

It also is looking at opening what it calls a dispensary in WA, being a cannabis-focused pharmacy.

The company said the $3 million in revenue in the year ending June 30 was up from $1.3 million in the previous corresponding period, with the bulk of turnover from medicinal sales.

MediCann also generates revenue through food and wellness brands Hemp brothers and EndoScent, and the sale of vaporisers.

MediCann’s clinicians have seen 7,500 patients. It charges $199 for a half-hour appointment.

The company has partnered with Curtin University and Perron Institute to conduct clinical trials on concussion, stating it has already completed two-year pre-clinical trials with promising results in relation to inflammation within the brain and motor performance.