Cannagrow Biosciences, a small medicinal cannabis research firm, have been awarded two contracts worth a total of £33m to supply protective equipment for the NHS, despite the company’s accounts showing it has just £6,000 in net assets.
Politicshome.com revealed the story of the massive contract award to the firm exclusively on their website yesterday and said the firm got the contract “despite appearing to have had no prior experience in the supply of PPE.”
David Extance (above) is the founder and CEO of the company, which according to its website specialises in the research of cannabis and its potential use in treating medical conditions.
New documents published earlier this week show the Department of Health and Social Care awarded the multi-million pound contracts to Cannagrow Biosciences to deliver masks for health and social care staff without the tender being put through a competitive process.
David Extance is seen here on his Facebook page in a post dated April 24 with 28,000 boxed face masks which he wrote were destined for care homes for the “MaskOurHeroes #upside down challenge,” a social media challenge created by entrepreneur Matthew McGahan to raise money for PPE for NHS staff after his father died with coronavirus
The firm, which was incorporated in October 2018, has never previously been awarded any government contracts. It comes after a National Audit Office report criticised the government for a lack of transparency over the awarding of contracts after they concluded over £10.5bn in taxpayer money had been handed out without the usual competitive tendering process.
The company, which produces a range of CBD oils derived from cannabis, claimed in a brochure earlier this year that their work in the “health and wellbeing consumer market” meant they were well placed to “support the growing demand” for PPE in the UK.
According to their website, the company’s director, David Extance, previously ran a firm involved in the production of E-liquids, before working in the USA on the development of a cannabis based vaping product.
The firm which states it is focussed on “unlocking the mysteries and science behind the cannabis plant”, also employs two directors with expertise in wealth management and financial services.
The details of the contracts, which according to government documents ended in April, were only published on Tuesday, fuelling further anger over the level of transparency.
Shadow cabinet office minister Rachel Reeves said the contracts raised more questions about the government’s “irresponsible approach” to the supply of PPE.
Follow us on Facebook, Instagram, Twitter and Linkedin #globalnetpictures #GlobalNet_Pics #governmentcontracts #NHSPPE #PPEcontracts #CannagrowBiosciences
#medicinalcannabisresearch #DavidExtance #Politicshome.com #netassets
