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Matica Forwards First Shipment of Cannabis to Saskatchewan

Matica Enterprises Inc. (CSE: MMJ) (FSE: 39N) (OTCQB: MMJFF) ("Matica" or the "Company") is pleased to announce that Matica subsidiary, RoyalMax Biotechnology Canada Inc. ("RoyalMax"), has forwarded its first shipment of cannabis to retailers in the Province of Saskatchewan.

"OUESTTM cannabis has been well received in Manitoba and we are please to provide a similar level of innovative premium flower products to our Saskatchewan consumers," says Matica CEO Boris Ziger. "Over the coming months, we hope to have our product in more Provinces."

The Company further reports that a 1,000,000 stock option have been granted to a director exercisable at $0.05 for five years from date of grant.

About Matica

Matica is a multi-faceted, innovative company in the Quebec cannabis space. Its subsidiary, RoyalMax Biotechnology Canada Inc. is a Dorval, Quebec based Health Canada Licence Holder with standard cultivation licence, standard processing, medical sales and sales licences. Matica continues to work with Yunify Natural Technologies, a Quebec based health and personal care research and innovation company to develop proprietary products for Matica and RoyalMax, including topicals and ionic mists. Through its acquisition of Trichome Treats, an award winning chocolatier, Matica and RoyalMax intend on introducing edibles into the RoyalMax product mix.

For more information on Matica Enterprises please visit the website at: www.maticaenterprises.com.

On behalf of the Board of Directors
Matica Enterprises INC.
Boris Ziger
Boris Ziger, CEO & Chairman

The Company's public filings are available for review at www.sedar.com and www.thecse.com.

For further information, please contact Boris Ziger, at:
Telephone: 416-304-9935
E-mail: info@maticaenterprises.com
Website: www.maticaenterprises.com, www.maticammj.com

Disclaimer for Forward-Looking Information

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

This news release contains statements about the Company's information that may be made available on the S&P Capital IQ Corporation Records Listing Program and the business of Matica that are forward-looking in nature and as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. We seek Safe Harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73472

News Provided by Newsfile via QuoteMedia

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Matica Enterprises

Overview

Matica Enterprises Inc. (CSE:MMJ,FWB:39N,OTCQB:MMJFF) is a licensed cannabis producer operating in Quebec, Canada. Matica is targeting the self-medicating cannabis and recreational markets by providing high-quality cannabis flower. The company also has its sights on obtaining a license to extract oil, so as to develop distillate and oil-based products. Matica intends to produce proprietary time-released topicals for the pain management market.

Matica is able to develop these products through their partnership with Yunify Natural Technologies, a Quebec-based health and personal care research and innovation technology company. In collaboration with Yunify, Matica is working towards developing a proprietary odor-neutral time release formula and topical creams for individuals looking to self-medicate and manage their pain, among other ailments. Together, the companies have recently announced its first proprietary product, a cannabis odor neutralizer that can be used as a personal spray. The companies are also developing a room deodorizer and topical creams.

Matica also has a 70 percent interest in RoyalMax Biotechnology Canada Inc.’s 10,000-square-foot cultivation facility in Dorval, Quebec. The licensed and operational facility is anticipating the approval of its sales license within the next year. The facility is currently operational and has completed two harvests to date.

Matica’s second, wholly-owned cultivation property boasts 181 acres of farmland in Hemmingford, Quebec, which is an hour south of Montreal. The property is ideally located and has the support of the local community. Matica will be building out five 200,000-square-foot greenhouses in stages for a combined production space of one million square feet. Phase 1 construction on the first greenhouse is currently underway. Additionally, the company has allotted approximately 30 acres of tilled land for outdoor growing.

To capitalize on the upcoming edibles market, Matica has acquired Trichrome Treats Inc. Trichrome and RoyalMax are expected to develop a full-range of adult-use cannabis-infused products, such as edibles and beverages. Initially, Matica intends to focus primarily on the chocolate and confectionary market.

Company Highlights

  • Low power costs associated with growing cannabis in Quebec.
  • Access to a $20 million equity facility from Alumina Partners.
  • Yunify partnership facilitates the development of topical creams, among other products for the self-medicating market.
  • The Dorval facility has a cultivation license and Matica has completed two harvests at the facility to date.
  • The Hemmingford property covers 181 acres of wholly-owned farmland with farming infrastructure in place.
  • Construction is underway on first of five 200,000-square-foot greenhouses.
  • Potential of one million square feet of indoor growing space once construction is complete.
  • Approximately 30 acres allotted as outdoor growing space.

Cannabis Production in Quebec

Deloitte is predicting that cannabis sales in Canada will generate up to $7.17 billion in 2019. While targeting the Canadian cannabis market, Matica is able to get a strong foothold in Quebec, Canada’s second largest province by population. In Quebec alone, the recreational market is expected to generate between $420 million and $1 billion in sales.

Compared to other provinces in the country, Quebec has issued a relatively low number of licenses, having granted them to only 15 companies. However, Quebec remains an attractive location for growing cannabis as the province offers some of the lowest energy costs in the country and a strong pool of land, labor and technical expertise. Additionally, the provincial government has expressed interest in supporting local growers and producers, giving established cannabis companies an advantage over their peers from other provinces.

Dorval facility

In March 2017, Matica acquired a 70 percent interest in RoyalMax Biotechnology Canada Inc.’s 10,000-square-foot cultivation facility in Dorval, Quebec. Matica supplied the funding and building materials required to build out the facility, which is now complete. Additionally, the Dorval facility has received its cultivation license and is one of 15 licensed cannabis facilities in Quebec. Matica is working towards obtaining a sales license for the property, which they expect to receive within the next year.

Matica intends to supply the cannabis market with high quality cannabis flower from this facility. Its proximity to the international airport in Montreal and Highways 20, 520 and 13 provide Matica with the ease of distributing their cannabis products throughout Canada and internationally.

Soon after receiving its cultivation license, the facility received its rooted starting materials in January 2019 and a second shipment in February. The plants were quickly planted and Matica completed its first harvest in May 2019. The company completed a second harvest the following month. Matica expects its fully-operational facility to annually produce one million grams of cannabis. The facility will work on a rotating schedule that allows for harvests every two to three weeks.

Hemmingford facility

Matica has also secured 181 acres of farmland on the South Shore, Quebec, in an area known as Les Jardins du Québec, an hour south of Montreal. Les Jardins du Québec is a microclimate that receives over 1,800 effective growing degree days, as reported by Agriculture and Agri-Food Canada, and ample sunlight. Due to the agricultural developments in the region, power has already been installed on the property and the government will be funding and installing a gas line that will be servicing the region. The property also hosts 150 acres of wooded area, giving the company access to wood on site.

Matica will be building five 200,000-square-foot greenhouses in phases for a combined indoor growing capacity of one million square feet. Phase 1 of construction on the greenhouses is underway. There is also approximately 30 acres of tilled land on the property, which Matica intends to use for outdoor growing. The cannabis grown outside, and in the greenhouses, will be used to develop a line of cannabis distillate and oil-based products, such as creams and other topicals.

Partnerships and Agreements

Yunify

In March 2018, Matica signed a definitive agreement to acquire a 40 percent interest in Yunify. Through their agreement, Matica will be financing Yunify for $2 million and will be able to address the demand for alternative cannabis delivery systems for pain relief, among other ailments.

Yunify is expected to develop proprietary topical products using the company’s mineral and plant-based suspension technologies, including a proprietary odor neutral time release formula that Matica intends to offer as a white-label solution for pharmacies and cannabis retailers. The companies have released their first proprietary product, an odor neutralizer that people can use to get rid of the scent of cannabis following consumption.

Yunify is also developing a line of functional hemp-based topical creams using its patented technologies. The topical creams are expected to use a time-release formula that is not greasy. The products would be available for sale in the US only and under the Matica brand.

Trichrome

In preparation for the upcoming cannabis-infused edibles market, Matica acquired Trichome Treats Inc. in May 2019. Matica and RoyalMax will be working with Trichrome to produce a full-range of adult-use cannabis-infused products, such as edibles and beverages. Initially, Matica intends to focus primarily on the chocolate and confectionary market.

Matica Enterprises’ Management Team

Boris Ziger, MBA — CEO and Chairman of the Board

Boris Ziger has over 20 years of experience in the capital markets and has been instrumental in the establishment and financing junior companies. For the past seven years, Ziger has been involved largely in the resource sector and has worked closely with many companies holding both board and senior management positions. He has been appointed Chairman of the board of directors.

George Brown — CFO

George Brown has a Bachelor of Business Administration with Honours from Bishop’s University in Lennoxville, Quebec. In 1982, Brown started his career in mining and resources as a Mining Analyst for La Societe en Commandite Camchib, a large flow-through fund established by Campbell Resources Inc. He was promoted to Controller of Culleton Lake Gold Mines Ltd. to oversee accounting, budgeting, payroll, purchasing and expediting a remote fly-in 350 ton a day gold mining operation in the Northwest Territories.

Brown was a financial consultant for Boulder Mining Corporation, Corner Bay Silver Inc., Flanagan McAdam Resources Inc., Muscocho Exploration Inc., MacMillan Gold Corp., McNellen Resources Inc. and Nugget Resources Inc. In September 2001, he became a director of MacMillan Gold Corp. and was appointed President. Brown was President and CEO until the amalgamation of MacMillan Gold Corp. with Duran Ventures Ltd. on October 2008 and was CEO of the amalgamated MacMillan-Duran until August 2009. He has been the President of MacMillan Minerals Inc. since March 2011. Brown was a Consultant to Corner Bay Silver Inc. during the discovery and development through feasibility of their Alamo Dorado project in Mexico, which was purchased in 2002 by Pan American Silver for over US$100 million in shares and warrants.

Charn Deol, Ph.D. — Director

Charn Deol has an extensive understanding of the marijuana industry having been an advocate for the legalization of marijuana since his studies at the University of British Columbia. Deol is a physiological psychologist by profession having earned a M.A. in psychology from UBC and a Ph.D. in counselling psychology from Columbia State College.

He also has over 30 years of experience in the financial markets. He has served on both private and public company boards. His past and current experience includes providing management and consulting services to companies, project analysis, investor relations and the financing of international projects. Deol is Vice-President of the Indo-Canada Chamber of Commerce (B.C.), and actively involved in fostering trade and business between Canada and India and provides corporate advice to foreign companies.

Meissam Hagh Panah — Director

Born and raised in Italy, speaking six languages and having lived and worked internationally, Meissam Hagh Panah’s understanding of the complexity and diversity of North American and European culture gives him an advantage to face the challenges of this new and everchanging cannabis market. He brings 10 years of international affairs and business development experience in a variety of industries with a special focus in the past few years on the cannabis and hemp sector in Quebec and worldwide.

Before joining Matica Enterprises, Hagh Panah consulted for several public companies in their cannabis licensing application process with Health Canada. After immigrating to Canada in 2008, he obtained a Certificate in Administration from HEC Montreal while working in diverse management roles in Montreal’s technology sector.

Roop Mundi— Director

Mr. Roop Mundi currently serves as Chief Executive Officer of Infuzed Brands Inc. Infuzed is a beverage company that focuses on CBD infused beverages. Infuzed is available in over 150 retail locations across the United States. In addition, Mr. Mundi owns and operates Mundi Capital Ventures – a private equity firm focused on consumer products distribution and logistics. Included in Mundi Capital’s investment portfolio is Jilong Plastic Products (North America) Inc. which is the sales, marketing and logistics arm of Shanghai Jilong Plastic Products – the third largest PVC producer of consumer goods worldwide. Mundi Capital currently provides logistics services and solutions for Weveel Products LLC, LoopScooters, Volm Industries and GrillTime Inc. Since its inception in 2015, Mundi Capital has successfully exited in three portfolio companies with an average multiple of 4 times total investment amount.

Prior to Mundi Capital, Mr. Mundi served as Vice President, General Counsel of RCI Capital Group Inc., a private equity firm based in Vancouver focused on Asia based transactions in the technology and energy markets. In addition, Mr. Mundi was Vice President, General Counsel of Kingsdale Shareholder Services Inc., the largest proxy and corporate governance firm in Canada. Prior to Kingsdale, Mr. Mundi was an Associate at Cassels Brock & Blackwell LLP focusing on corporate finance and securities in the real estate, technology and mining sectors. Mr. Mundi currently sits on the Board of Directors for Loopshare Ltd. Loopshare is publicly listed and is an emerging global leader in ridesharing, micro-mobility and sustainable transportation. Mr. Mundi holds a Bachelor’s degree from North Carolina State University, a Master’s degree from the University of Toronto and a law degree from the University of British Columbia.

Marcel R. Tremblay — Advisor

Marcel Tremblay resides in Quebec City and is a former Member of Parliament. First elected in 1984, he occupied a number of important positions in the House of Commons, including Parliamentary Secretary to the Deputy Prime Minister, to the Minister of Finance and to the Minister of Justice and Solicitor General of Canada.

During his two terms in the House of Commons, he also held the positions of Vice-Chairman of the House External Affairs and National Defence Permanent Committee, Vice-Chairman of the Permanent Public Accounts Committee and Vice-Chairman of the Permanent Members Affairs Committee and was a member of the Legislative Committee Chairman’s Committee, Co-Chairman of the Commission on Senate Reform, a member of the House of Commons Permanent Management Committee and Chairman of the ten-member caucus of MPs from the Quebec City area. In addition, he was a member of numerous parliamentary committees including: Canada-China, Canada-Europe, Canada-Japan, Canada-U.S. and Economic-Missions: Germany, Brussels, Moscow, New Zealand, Holland, and Taiwan. Finally, he was the representative of the Canadian government at the U.N., N.A.T.O. and O.E.C.D.

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Consumption habits are changing as edibles, vaping and THC beverages gain traction, especially among younger users, and cannabis companies are adapting their offerings to meet shifting demand.

Meanwhile, regulatory uncertainty, particularly surrounding the future of the US Farm Bill and state-level restrictions on hemp-derived cannabinoids, continues to challenge the market.

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Consumption methods evolving post-legalization

Shifts in consumer behavior are reshaping markets across the board, and the cannabis industry is no exception.

While smoking remains the dominant method of cannabis consumption, a recent report from the Centers for Disease Control and Prevention highlights the growing popularity of edibles, vaping and dabbing.

The report notes that vaping and dabbing are particularly pronounced among younger adults.

A separate study published by the American Medical Association and funded in part by the Canadian Institutes of Health Research also points to how product preferences have changed among Canadian users since legalization in 2018.


The study indicates that while the use of flower, cannabis concentrates, oil, tinctures and topicals has decreased during that time, the use of vape cartridges, edibles and beverages has increased.

Edibles and beverages were legalized in Canada in late 2019, and Truss Beverage was one of the first players to introduce cannabis-infused drinks. Truss was a joint venture formed by Molson Coors Canada (TSX:TPX.A,TSX:TPX.B) and HEXO, a cannabis company that has since been acquired by Tilray Brands (TSX:TLRY,NASDAQ:TLRY).

In early 2020, Tilray launched a lineup of confectionery, wellness products and beverages through its subsidiary, High Park; Canopy Growth (TSX:WEED,NASDAQ:CGC) made a similar move. These companies gradually brought their products to the US as more states legalized cannabis for medical and/or recreational use.

Today, established cannabis brands typically offer edibles and beverages alongside their other products. Organigram Global (TSX:OGI,NASDAQ:OGI) is one of the newest US entrants, with its April acquisition of Collective Project providing immediate access to the US hemp-derived THC beverage market.

Growing awareness of health and wellness, potentially amplified by the pandemic-led adoption of health trackers, appears to be making an impact on the alcoholic beverage market.

A 2023 Gallup poll reveals a two decade decline in alcohol consumption, particularly among younger adults, suggesting a shift towards more health-conscious lifestyles within this demographic.

Craft beer production declined by 4 percent year-on-year in 2024, according to data collected by the Brewers Association. This marked the largest drop in the industry's history, excluding the pandemic. For small, independent craft breweries, 2024 marked the third consecutive year of declining production. A drop in the number of operating small breweries last year provides further evidence of this trend, with 501 closures in 2024 versus 434 openings.

Challenges in the alcohol market extend beyond the brewing industry, with the New York Times recently reporting the closure of a handful of nightclubs facing decreased alcohol sales alongside rising insurance and rent costs.

Meanwhile, cannabis lounges have been popping up across the US for the last several years. As of early 2025, several states had legalized or were in the process of implementing regulations for cannabis consumption lounges.

Hemp market growth despite regulatory uncertainty

The burgeoning hemp industry is another segment of the expanding cannabis market.

The legalization of industrial hemp — defined as cannabis with a THC concentration of 0.3 percent or less — through the 2018 Farm Bill led to initial investment and optimistic projections for CBD wellness products and various industrial applications. The sector’s rapid evolution also brought the rise of hemp-derived intoxicating cannabinoids, creating a market that presented both opportunities and complexities for participants.

However, after an initial boom, a lack of infrastructure and clearly defined regulations for CBD, as well as state-level variations and market oversupply, ultimately contributed to a quick retraction.

2024 was a pivotal year for the US hemp industry, as the hemp-related provisions of the 2018 Farm Bill — originally set to expire in September 2023, but extended to December 31, 2024 — created an urgent need to address critical issues like THC limits and the regulation of novel hemp-derived cannabinoids. A major point of contention was the proposed shift from defining hemp based on Delta-9 THC concentration (0.3 percent or less) to “total THC,” which includes THCA.

This change had the potential to significantly impact farmers and processors, as many hemp varieties that are compliant under the Delta-9 THC rule could exceed the 0.3 percent limit when THCA is included.

Various bills and amendments were proposed in 2024 as part of the Farm Bill discussions, each with different approaches to regulating hemp. Separate regulatory frameworks for industrial hemp and hemp grown for cannabinoids were suggested, and many states took their own action, leading to a patchwork of regulations and even outright bans.

Despite challenges, data from the US Department of Agriculture suggests signs of recovery.

The department's annual National Hemp Report from 2024 points to an 18 percent increase in industrial hemp production value between 2022 and 2023, with output growth seen in specific sectors like floral (18 percent), fiber (133 percent) and seed hemp (414 percent). The 2025 report from the Department of Agriculture indicates further expansion, with notable increases observed in both acreage (up 64 percent from 2023) and value (46 percent).

The 2024 Farm Bill ultimately did not pass, and right now the hemp industry is operating under a temporary extension of the 2018 Farm Bill under the American Relief Act of 2025, signed into law on December 21, 2024.

The 2018 Farm Bill is now set to expire on September 30, 2025.

While analysts for Markets and Markets project that the North American hemp industry will grow at a CAGR of 22.4 percent and ultimately reach a valuation of US$30.24 billion by 2029, the future of the industry will be heavily influenced by the outcome of the ongoing Farm Bill discussions.

US cannabis legalization remains stalled

Although there is clear demand for cannabis products, the now-defunct rescheduling process in the US is likely to continue casting a shadow of uncertainty over the industry's long-term trajectory.

Legal and procedural delays, including allegations of improper conduct and bias within the US Drug Enforcement Administration (DEA), led to hearing cancellations, and the new administration of US President Donald Trump has brought leadership changes to key agencies like the DEA and the Department of Justice.

Terry Cole, who Trump nominated to be DEA administrator on February 11, has a history of opposing cannabis legalization in the country. Similarly, Pam Bondi, Trump’s pick to lead the justice department, staunchly opposed a movement to legalize medical cannabis during her tenure as Florida’s attorney general.

While there have been bipartisan efforts in Congress to end federal cannabis prohibition and establish regulations for eventual legalization, the DEA’s actions and statements indicate a potential stall or reversal of progress.

In addition to that, new research is adding complexity to the debate.

A study published in the American Journal of Psychiatry this past March highlights an association between the use of high-potency cannabis strains and increased risks of psychosis, a factor that may not have been fully considered by the Department of Health and Human Services. As stronger cannabis strains become more widely available, a reassessment of their potential health risks may be required.

Investor takeaway

While the cannabis industry holds promise for growth and innovation, investors must remain acutely aware of the regulatory uncertainties and market volatility that will undoubtedly shape its trajectory in the years to come.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

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