Western Australia-based AusCann Group Holdings Limited told the ASX it had completed manufacturing, testing and release of a low-dose cannabinoid-based capsule in a commercial-sized batch.

It said the "milestone" confirmed it could customise cannabis dosing for its capsules.

"AusCann is on target and progressing towards the goal of having its hard shell capsules commercially available for physicians to prescribe in Australia in the first half of calendar year 2020," it said.

AusCann in July announced a three-year deal with Westbury-based Tasmanian Alkaloids, which would supply cannabis resin.

Best known for producing medicinal opiates from poppy crops, Tasmanian Alkaloids would supply at least 30 per cent of AusCann's cannabis resin requirements for three years.

There was an option for a three-year extension.

AusCann chief executive Ido Kanyon said the company's ability to customise dosing while ensuring each capsule was true to label and produced on a commercial scale added to its competitive advantage.

"Providing true to label customised dosing and enabling customisable treatment of the patient is what differentiates our product in the market," he said.

"Reliable, stable and standardised medicines are critical in order to generate quality clinical evidence for cannabinoid-based medicines.

"This evidence is a prerequisite to market expansion and medical acceptance by healthcare professionals."

He said AusCann was committed to making its dose-controlled capsules available for prescription to patients in the first half of 2020 through the Therapeutic Goods Administration special access scheme and authorised prescriber scheme.