Piper Alderman recently advised Atlas Pearls and Perfumes Limited’s fully owned subsidiary Essential Oils of Tasmania Pty Limited on the sale of its fully owned subsidiary Cannabinoid Extracts Australia Pty Limited to Capital Mining Limited.

Capital Mining Limited (ASX: CMY) has signed a non-binding term sheet to acquire 100% of Cannabinoid Extracts Australia Pty Limited (CEA) from Essential Oils of Tasmania Pty Limited (EOT), wholly owned by Atlas Pearls and Perfumes Limited (ASX: ATP).

CEA was set up by EOT for the purpose of securing growing and processing licences for the manufacture of cannabinoid extracts.  EOT and CEA have submitted applications to both the Tasmanian and Federal Governments to grow, manufacture and process Industrial Hemp.

Piper Alderman was involved from the very outset in drafting and  developing the licence application and had close interaction with  Government officials at the State and Federal level in relation to  potential regulatory changes.

As the medicinal cannabis industry is relatively new in Australia, the regulatory framework underpinning the cultivation of cannabis for therapeutic end use is still is a work in progress.

Dr Teresa Nicoletti, Partner at Piper Alderman said,

“We are delighted to have worked closely with Essential Oils of Tasmania on the establishment of Cannabinoid Extracts Australia and then its subsequent acquisition by Capital Mining Limited. Subject to applications being granted at both the State and Federal level, the extraction of CBD from industrial hemp (cannabis) has enormous therapeutic potential for those suffering from a wide range of conditions including epilepsy, multiple sclerosis and inflammatory disorders. Our involvement in assisting CEA to establish a ground-breaking business which produces CBD for supply in Australia and export globally is truly exciting.”