Little Green Pharma is among 25 businesses which have shared in $4.2 million under the state government's Value Add Agribusiness Investment Attraction Fund's latest funding round.

The grant will support an advanced new manufacturing facility containing clean rooms, and processing and packaging areas to produce medical-grade cannabis products for Australian and European patients.

It will allow Little Green Pharma to become the first Australian producer to establish a fully vertically integrated, 'seed-to-sale' value chain for medicinal cannabis.

Agricultural minister Alannah Mactiernan said medicinal cannabis procession would be a real job creation opportunity for the region.

"These new medicinal cannabis processing facilities will be a first for the South-West and will help establish the region as a leader in medicinal cannabis production and processing in Australia," she said.

"The project is supporting up to 40 jobs during construction and is estimated to create eight direct positions to support growing and processing of medicinal cannabis products.

"It can also provide opportunities to leverage the regional processing capability of the facility, either by local hemp growers already operating in the region or potential medicinal cannabis crop cultivators.

The project, which involves significant co-investment from Little Green Pharma, will significantly increase processing capacity and boost potential to supply Australian patients as well as international markets including Europe.

There are strict regulatory requirements for the cultivation and manufacturing of medicinal cannabis in Australia.

A full list of grant recipients is available at the Department of Primary Industries and Regional Development's website.