THC Global Group Limited (ASX: THC) is an ASX listed company, operating in the Health Care sector. The company’s current focus is on the medical cannabis industry wherein it makes and delivers high-quality cannabis products for Australian patients. The company has its own pharmaceuticals biomanufacturing facility and two growing sites with a significant growing capacity, which gives it an advantage of being in the key position, able to cater to both the domestic and international markets.
Apart from the core medicinal cannabis companies, THC has Crystal Mountain Products which operates hydroponics retailer and distributor of equipment, material etc. to the growers of cannabis. It also owns investment vehicle namely Vertical Canna Inc.
On 15th May 2019, the company released several operational updates, including the exploration of new product development opportunities, expansion of its Northern NSW cannabis cultivation project and securing an Australian export licence. It also notified about the update on its agreement with EVE Investments Limited (ASX: EVE).
Medicinal Cannabis Export Licence
The company has been granted with a Medicinal Cannabis Export Licence by the Australian Office of Drug Control (ODC) which is necessary for exporting the medical cannabis from Australia. This licence will improve the company’s position and its global reach.
Northern NSW cannabis cultivation project
The company mentioned about its binding intention with EVE for an additional USDA certified organic land lease on Robyndale property, which will increase the total leased land up to a potential 150,000m2. However, the lease is subject to land suitability confirmation regarding the lodgement of a cultivation licence application with the ODC.
Under the agreement, THC will provide EVE with exclusive access to its medical cannabis for the use in product development by Meluka Honey.
The medicinal cannabis cultivation licence lodged earlier by the company for 60,000m2 of currently leased land from EVE, for the purpose of cultivating medicinal cannabis has now progressed to ‘assessment phase’ by the ODC of Australia and is expected to be received this year.
EVE Investments Limited
EVE Investments is an investment company which primarily invest in the medical nutrition sector. The company invests in the early stage businesses having a product with unique medical properties with global reach. Also, EVE prefers natural organic products. Its current product portfolio consists of Meluka Health, Jenbrook, Naturally Australian Products LLC and Omni Innovation.
Product Development at Manufacturing Facility
Therapeutic Goods Administration (TGA) has advised the company that after the relevant approvals and licencing, THC would be able to produce both cannabis and non-cannabis products from its Queensland bio-pharmaceuticals extraction facility. This will help the company to increase the production and monetise the excess production capacity.
Also, THC has delivered an extraction of tea?tree product for Meluka Health’s R&D program at their Southport facility in South East Queensland. THC’s current and planned operations can positively help in production and product development for Meluka Honey.
On 18th April 2019, THC released updates regarding the operations of Global Hydroponic Equipment and securities released from Escrow.
The company has a market capitalisation of A$59.29 million. The stock has 52-week high and low of A$0.66 and A$0.41 respectively. By the closure of the trading session, the stock of the company was at A$0.460, after making an intraday high of A$0.49 (as on 15th May 2019). The last one-year return of the stock is negative 32.8%, and the YTD return stands at negative 6.3%.
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