AusCann Group Holdings Limited announced that it has entered an exclusive distribution agreement with Clifford Hallam Healthcare (CH2) to store and distribute AusCann's pharmaceutical products in Australia. AusCann has consolidated its warehousing and logistics operations under the agreement with CH2, which is effective immediately. The new agreement is cost-effective and extends AusCann's distribution network in Australia. The agreement with CH2 replaces the Heads of Agreement signed in January 2018 with Australian Pharmaceutical Industries Limited (API). The Heads of Agreement was discharged by mutual agreement between AusCann and API to enable both parties to engage with additional commercial partners in the field of cannabinoid-based medicines. Under the terms of the supply agreement with CH2, products will be supplied to pharmacies by CH2 for AusCann, in full compliance with the regulations governing the supply of an unregistered medicine. The new agreement is for a period of twelve months with an option to extend further. This agreement marks another step on AusCann's path towards making the hard-shell capsules available for clinical evaluation and prescription to patients in Australia through the TGA special access scheme and authorized prescriber scheme during the first half of 2020.