Western Australia's ambitious medicinal cannabis company, Cannaponics, has set its sights on a public listing on the Australian Securities Exchange in the second half of 2026. The move is designed to fuel its expansion plans in a global legal cannabis market projected to be worth over $150 billion by 2030.
Building a Diversified Powerhouse in Collie
Led by founder Rod Zakostelsky, the company is establishing a significant production facility on a 165-acre site in Collie, in the state's South West region. The operation aims to produce an impressive 15,000 tonnes of medicinal cannabis annually, including dried flower and oil products, with the first harvest expected in March or April this year.
In a strategic move to "future-proof" the business, Cannaponics has proactively diversified its revenue streams. A key part of this strategy was the $550,000 purchase of the Club Hotel Collie in 2024. The acquisition of the 21-room hotel, which features three bars and a bottle shop, was initially driven by concerns over the regional housing crisis and its impact on attracting staff.
Hotel Investment Pays Off and Fuels Growth
This unconventional diversification has proven highly successful. By also opening the hotel's doors to local mining workers, Cannaponics has nearly doubled the venue's revenue to $6 million since taking ownership. Encouraged by this, the company plans to build an additional 48 rooms on-site, a project Mr Zakostelsky believes will boost annual revenue from the hotel to around $14 million.
"We have diversified within the company to combat any future challenges that we may face within the industry," Mr Zakostelsky stated. He anticipates significant industry consolidation over the next 12 to 36 months, but remains confident in his company's position. "We're one of only half-a-dozen growers here in the country at the scale that we have, so for us it's exciting to be part of that," he added.
IPO Plans Amid a Shifting Global Landscape
Preparations for the Initial Public Offering (IPO) are underway, with the company appointing stockbroking firm Morgans as lead manager and adviser. The listing plan coincides with a pivotal shift in international cannabis policy.
The company's ambitions have been bolstered by a recent executive order in the United States. In late 2025, US President Donald Trump signed an order to reclassify cannabis from a Schedule I drug (alongside heroin and LSD) to the less restrictive Schedule III category. This places it in the same federal category as some common prescription painkillers and is expected to significantly expand access and research, further legitimising and accelerating growth in the global legal market.
With its large-scale production capability, unique diversification model, and a favourable regulatory wind at its back, Cannaponics is positioning itself as a serious contender in the rapidly evolving billion-dollar medicinal cannabis sector.
