As per the ASX announcement dated 21st December 2018, the THC Global Group Limited (ASX: THC), formerly The Hydroponics Company Ltd, announces approval of two major cannabis permits by its wholly owned subsidiary Canndeo Limited. The receipt of grants from the Office of Drug Control (ODC), will allow the cultivation and production of the companyâs proprietary high CBD strains at its Queensland Growing and R&D facility.
At the request of the company releasing major announcement, ASX placed the securities of THC Global Group Ltd on a trading halt effective 19th December 2018. The securities resumed trading today. The shares of the company rallied to 46.5 cents, up by 8.14% at the close of the trading session.
The company is expanding the cannabis plant supply for processing into cannabis oils and other medicinal cannabis drugs at its Australian manufacturing facility. The granting of these licenses complements THC Globalâs farm-to-pharma medicinal cannabis strategy. Additionally, the company aims at maximizing yields and quality in its full-scale cultivation at Australian growing facilities. The company will be henceforth assisted by the data generated through the research under the permits.
THC Global Group is a biopharmaceutical company involved in providing medicinal cannabis products. THC has two high-grade medicinal cannabis growing sites based in Australia. One is âNSW Growing Siteâ with a large-scale capacity of up to 600k plants every year. The second is âQueensland Growing and R&D facilityâ capable of producing expected 850k strain clones per year
The company also operates a global hydroponics business, focusing on the manufacturing and distribution of hydroponics equipment, materials, and nutrients across North America, via Crystal Mountain Manufacturing (100% Owned by THC Limited). As announced on 28th November 2018, THC also expanded its reach across New Zealand medicinal cannabis market. This is an excellent step considering the recent proposal for cannabis legalization for New Zealand patients.
The THC Global has two additional manufacturing licence applications under review over two areas- ODC permitted growing and R&D facility, and its large-scale manufacturing facility.
The company is in a unique position with strong potential of establishing its mark as a leading cannabis producer. It has fully built production ready sites, submitted for licencing and permitting while some of its peer companies in the industry are struggling for the license in the pre-construction phase.
The companyâs Global CEO, Ken Charteris commented stated that the company is looking forward to establishing itself as one of the only Australian companies to have production ready facilities with licencing and permitting at an advanced stage soon. The management is planning to partner with global commercial partners in further research and development activities on the proprietary strains.
With a meagre performance change of 6.17% since its inception on May 4, 2017, THC stock has been on a downtrend this year. The companyâs stock offers a negative YTD return of 38.13% till date.
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