Businesses in Guernsey can now apply to cultivate cannabis for use in medicinal products.
The Bailiwick's signed a Memorandum of Understanding (MoU) with the UK Home Office.
All applications will be received by the newly created Bailiwick of Guernsey Cannabis Agency (BGCA). Successful applicants will then be able to cultivate cannabis plants with high THC content - the most psychoactive element of the plant - as they develop their products.
Prior to the agreement, only licences for the cultivation and processing of CBD products were available.
The medicinal cannabis market is one of the fastest growing cannabis sectors.
Market intelligence from industry experts, Prohibition Partners, estimate that the European medicinal cannabis market will grow to a value of £16.1bn by 2041 .