Marijuana firm set for ASX debut

Peter Klinger

Ross Smith's Phytotech Medical is set to make its sharemarket debut on Thursday to become Australia's first listed medical marijuana company.

The company, which wants to develop medical cannabis delivery systems to help those suffering conditions including chronic pain and cancer, easily reached the $5 million target under its initial public offering prospectus and two weeks ago agreed to take an extra $932,410, also at 20�.

It will give Phytotech a market capitalisation of $8.9 million.

Phytotech lodged its prospectus with the Australian Securities and Investments Commission in November and wanted to list before Christmas.

However, its status as the ASX's first medical cannabis company provoked "an extra level of scrutiny", as Phytotech insiders described it, and probing of a partnership deal with Yissum Research Development in Israel.

Israel, where executive director Mr Smith and managing director Boaz Wachtel will be based, is also a key market for Phytotech along with parts of Europe and the US which have regulated medical cannabis laws.

Phytotech says it will spend $3.2 million of IPO cash on technology development.