The company behind Australia’s first cannabis CBD-rich oil is to launch a multi-million dollar deal, its chief executive says.

CBD Australia chairman Mike Hargreaves said the deal with pharmaceutical company BioMed Research, which produces Cannabix, would include about $250 million in funding.

Mr Hargrets said it was also the first investment in medicinal cannabis in Australia, which the industry’s regulator, the Therapeutic Goods Administration (TGA), had ruled would be legal to grow under the current cannabis legislation.

He told AM on Saturday that he hoped to make the deal happen by the end of April.

“It’s a very big deal for this industry and it’s a big deal globally for the industry.

It’s one of the biggest drug deals we’ve done, but it’s very much an Australian one,” he said.

The firm will be developing products to be sold under its BioMed brand, including CBD oil, topical medications and topical formulations for eye care.

BioMed Research will also supply CBD oil to Health Canada, which has licensed BioMed to produce CBD products.

BioMed Pharmaceuticals declined to comment.

Mr Hargres said it had received regulatory approvals to sell CBD from the TGA, which includes the Australian Securities Exchange, and that BioMed was expected to submit the deal to the TMA in the next few weeks.

“As a pharmaceutical company, we look forward to supporting BioMed’s business and taking advantage of the opportunity to do some business and grow our company,” he told the AM program.

However, the deal does not include any cannabis-related products.

Australian Medical Cannabis has a long history of involvement in the medicinal cannabis industry, with the company first supplying the plant to people with cancer who were treated at the University of Sydney in the 1970s.

It also partnered with the Australian Institute of Health and Welfare in 2016 to create a medicinal cannabis advisory board.

More recently, the company was involved in the formulation of the first cannabinoid-rich hemp oil for use as an anti-cancer treatment.

Last year, it became Australia’s largest cannabis producer with its own branded CBD oil and its own CBD product line.

In 2017, BioMed also set up a clinical trial to test CBD for the treatment of glaucoma in patients, with results expected in 2018.

Its CBD products are marketed as a ‘clean’ alternative to cannabis or alcohol.

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