THC Global Group Limited (ASX: THC) which was earlier known as Hydroponics Company Ltd has asked ASX for the trading halt of its securities till Friday 21 December 2018 or in case any further announcement is made by the company as per the ASX Listing Rule 17.1. The purpose of the trading halt is because the company’s wholly-owned subsidiary Canndeo Ltd will receive permits from the Department of Health, Office of Drug Control.
The company expects that the trading halt will be lifted by 21 December 2018.
Canndeo Ltd is a wholly owned subsidiary unit of THC which is into the business of formulating, developing and commercializing medicinal therapies related to cannabis
The official listing date of THC on ASX is 04 May 2017. After getting listed on ASX, the performance of the company was 6.17%. However, the past one-year performance of the company was -32.81%.
For the half-year of FY2018 ended on 30 June 2018, there was an increase in the revenue from the continuing operations by 295% which was $1,276,698. Also, there was also an increase in the net loss of the company by 339% as compared to the previous corresponding period, which is attributable to the members of the company. The net loss for half year FY2018 was $3,196,156.
The balance sheet of the company appears to be healthy as the company has maintained a strong net asset balance of $32,756,300 and a debt-equity ratio of 0.14. The company holds a strong position regarding the total current asset which $11,203,423 and total current liabilities of $3,886,575 which indicates that the company can efficiently manage its short-term obligations as well as its working capital requirements. However, during this period there is an increase in the accumulated losses of the company by $2,427,578 which could create a negative impact on the investors and the shareholders of the company. It also highlights the poor operating performance of the company. The total shareholder’s equity is worth $32,756,300.
The company used net cash of $3,325,055 in its operating activities where the primary source of cash outflow was in the form of payment to the suppliers and employees. The company used net cash of $2,928,188 in its investing activities where the primary source of cash outflow was in the form of payment for patents and the development costs. The company generated $3,804,291 through its financing activities where the primary source of cash inflow was in the form of the issue of shares.
By the end of the half year of FY2018, the net cash and cash equivalent available with the company was $8,609,460. After the company announced the information related to the trading halt, there was no trading of shares on ASX today. The share traded last on 18 December 2018 with the closing price of A$0.430 with the market capitalization of A$54.73 million.
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