THC Provides Update on Global Hydroponic Equipment Operations and Release of Securities from Escrow

  • Apr 18, 2019 AEST
  • Team Kalkine
THC Provides Update on Global Hydroponic Equipment Operations and Release of Securities from Escrow

THC Global Group Limited (ASX: THC) is a small cap Australian company that deals in delivery of high quality medicinal cannabis products to Australian patients and the export market. The company was officially listed on 4th May 2017 on ASX. The company operates under “Farm to Pharma” model. THC’s two core business units in Canada, Crystal Mountain Products and Vertical Canna Inc., manufacture and distribute hydroponics equipment, materials and nutrients.

THC Global Group Limited (ASX: THC) is a small cap Australian company that deals in delivery of high quality medicinal cannabis products to Australian patients and the export market. The company was officially listed on 4th May 2017 on ASX. The company operates under “Farm to Pharma” model. THC’s two core business units in Canada, Crystal Mountain Products and Vertical Canna Inc., manufacture and distribute hydroponics equipment, materials and nutrients.

Today, the company has provided an update about its earlier offer (Announced on 5 April 2019) to eligible shareholders to apply for up to $15K news shares at $0.50 under SPP offer, 14.6% discount to the 5-trading day VWAP. The company informed the market today that its CEO and directors have confirmed their participation in the Share Purchase Plan. The allotment and issue of New Shares is expected to be on 6 May 2019.

THC Global Group earlier issued an update on release of securities from Escrow Account. As per the information, the securities to be released on 4 May 2019 include 37,514,450 fully paid ordinary shares, 24,132,225 options exercisable at $0.40 (expiring 31 December 2019) and 20,500,000 performance shares.

THC Global provided an update on one of its core business unit, Crystal Mountain on 17 April. Crystal Mountain is now-a-days focussing on expanding in the United Kingdom, Europe and Canadian market by obtaining distribution agreements. The company anticipates to see robust sales in the above regions with the settlement of the distribution agreements.

By distributing new products that are imported from its partners across Canada, the company has amplified its product range. The company plans to import the products from international market soon. The company is aiming for expansion and is seeking new sales channels like introduction of online cannabis-focussed offerings for micro-cultivator market.

The company’s unaudited revenue increased by 22% in the March quarter as compared to the December quarter and was recorded at A$991,000 (annualised A$3.964 million). The increase was a result of company’s strong performance in sale of lighting equipment product ranges.

Chief Executive Officer, Ken Charteris opines that the company is pleased to see its hydroponics equipment division continuously growing. According to him, this success was due to the company’s partnership strategy as it enabled the firm to expand its market reach and widen its product offering. He considers market reach and product offering as the core drivers of revenue growth.

In early April, THC Global secured a mutually exclusive partnership with Malaysia-based agri-tech firm, Heleogenics.

In this financial report for the year ending 31 December 2018 , THC Global Group declared a loss after tax of $8,611,270 in 2018 as compared to the loss of $2,558,525 in 2017.

THC Global’s stock closed at AUD 0.540 (at 7:41 PM AEST on 17th April 2019), up by 1.887% compared to the previous day’s market price. The company reported the market capitalization at 68.25 million with 128.78 million shares currently outstanding. The 52-week high and low value was recorded as 0.790 and 0.415 respectively.


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