Medicinal cannabis product company, THC Global Group Limited (ASX: THC) released its chairman address, which is to be presented in the 2019 Annual General Meeting scheduled to be held today, i.e., 28 May 2019.
THC Global functions as a ‘Farm to Pharma’ company, focused on the delivery of premium-quality medicinal cannabis products to Australian and overseas market. THC Global also owns two Canadian companies- Crystal Mountain Products (a global hydroponics retailer and distributor of material, equipment, and nutrients to cannabis growers and producers) and Vertical Canna Inc. (an investment vehicle for acquisition and strategic partnership purposes).
Medicinal Cannabis Snapshot (Source: Company’s Presentation)
Steven Xu, THC Global Chairman, stated that THC Global is in the process of entering the Canadian cannabis market with cultivation project in Nova Scotia, Canada. The group also continues to expand its Crystal Mountain business which now has access to the UK and European hydroponics equipment markets.
THC Global has successfully secured the key infrastructure required to commence a vertically integrated manufacturing process within Australia of high-grade pharmaceutical cannabis products for sale into the domestic and global markets. The progress outlines the THC’s now increased capacity Cultivation Site in Northern NSW, Manufacturing Facility in Southport, Queensland and the company’s strain Research and Development (R&D) and Secondary Manufacturing site in South Eastern Queensland.
THC Bio-pharm Prod R&D Facility (Source: Company’s Presentation)
Mr Xu stated that “Since THC’s Annual General Meeting, its Board and Management has undertaken a refocusing of the company towards building a global, diversified and vertically integrated cannabis company reflecting newer and greater opportunities than ever before.”
Moreover, two more manufacturing licenses stand waiting in the queue for approval. It includes- a license for large-scale GMP-ready Manufacturing Facility in Southport, Queensland and another license for smaller scale manufacturing to complement the company’s existing R&D and cultivation programs in South Eastern Queensland.
As per the latest communication with the Office of Drug Control, THC Global has been reportedly advised that both manufacturing licence applications are progressing, with one application currently before a delegate of the Health Ministry for review prior to granting, and the second soon to reach the same final review stage.
THC’s Queensland Growing and R&D Facility (Source: Company’s Presentation)
To count on the major developments undertaken by the company in the recent past year, THC’s first strategic partnership in Asian Market comes under the spotlight. This translates the THC’s partnership with a biotech and agri-tech firm in Malaysia, as a first step in executing our Asian Market Strategy.
The transcript read that THC Global is having a competitive edge in a medicinal cannabis market as it holds large-scale asset, key commercial and stable partnerships and experienced talent that shapes the company to structure its future business growth towards near term strong revenue generation.
Looking forward, Mr Xu confirmed the company’s position stronger than it was 12 months ago. He stated that “THC now have a clear path towards leading the Australian cannabis market in terms of ability to produce significant quantities of high-grade pharmaceutical medicinal cannabis products for supply to Australian patients and the global export market.”
The market players seem to favour the stock on the day of its Annual General Meeting as the stock has gone up by 5.682% in the early trade. THC stock price currently stands at $0.465 as at 28 May 2019 (1:11 PM AEST).