Marijuana stocks or pot stocks are catching investors eyes these days after the legalisation of cannabis for medicinal and recreational use in many countries. According to Australian health department all the cannabis formulations such as tinctures, oil and some other extracts, which have therapeutic application comes under “medicinal cannabis products”.
In Australia, there are various companies in the cannabis space and have entered towards the manufacturing and export of medicinal cannabis products.
Cannabis is the newest and most modern herb on the planet. The federal government’s Office of Drug Control (ODC) has issued an ever-increasing number of licences that permit the companies to develop cannabis for commercial purposes, cultivate cannabis for research, and produce cannabis-based formulations.
The Therapeutic Goods Administration (TGA) regulates who can utilise medical cannabis in Australia, under two special access schemes: One scheme SAS A is for palliative care and the other SAS B is for unapproved formulations.
The Narcotic Drugs Act 1967 allows the Office of Drug Control (ODC) to issue four types of licences-
THC Global Group Limited (ASX: THC)
On 21 January 2020, the stock of THC closed the day’s trade at $0.430, zooming up by 10.256 per cent from its previous close. The company’s market capitalisation stood at nearly $54.9 million, with almost 140.77 million shares outstanding. THC stocks 52 weeks high and low-price stands at $0.630 and $0.305. The company has delivered a positive return of 4.00 per cent in last one month.
About the company-
One of Australia’s leading medicinal cannabis companies THC Global Group Limited (ASX: THC) has all the three key cannabis licenses- a cannabis research license, one license for its cultivation and two licenses for manufacturing. The company’s Southport manufacturing facility is one of the most extensive pharmaceutical bio-floral extraction facilities in Southern Hemisphere; in addition, THC global also operates in Canada.
The company has a significant presence in Canada in addition to Australian medicinal cannabis assets. In Nova Scotia, Canada, THC owns a holder of property- Canndeo Canada, that is being established into a large-scale manufacturing site of cannabis.
The company is in prime position to initiate medicinal cannabis manufacturing to benefit both domestic patients as well as the international export market.
Let us now discuss the recent activities of THC Global contributing towards its increasing share price-
Manufacturing Licence Granted for Southport Facility
On 21 January 2020, THC global revealed that the company had received a manufacturing license to manufacture the Therapeutic Goods for the Southport Facility by Australian Therapeutic Goods Administration. This license is known as GMP license, and after receiving this license, THC has completed all the licenses required to initiate the manufacturing of medicinal cannabis commercially.
By this GMP licence, the company has rights to manufacture- API (Active Pharmaceutical Ingredient) extracts; packaging and formulation of medicines; on-site analysis and testing; and supply of therapeutic cannabis for human trials in Australia as well as internationally.
The Southport Facility of THC, which is a European built and designed pharmaceutical bio-floral extraction facility meets essential requirements for entering the European market and distinguishing THC Global from almost all established global cannabis companies.
On 02 January 2020, the Office of Drug Control (ODC) clarified that appropriately permitted and licensed organisations may import cannabis material, as well as extracts, for use in production.
THC Global would utilise cannabis grown in Australia and has imported crude extract to accelerate its timeline for local manufacture. The method will certify that THC Global can scale towards full site capacity as it increases domestic and international market reach.
Production of cannabis derived medicines started under newly appointed THC Pharma’s COO, Angela Macquire, who has a significant experience in the pharmaceuticals industry at several senior-executive levels.
In an ASX announcement dated 20 January 2020, THC Pharma unveiled that it has signed a Supply Agreement with MGC Pharmaceuticals Ltd (ASX:MXC).
The key points related to this agreement are-
- According to this supply agreement, MGC Pharma will offer THC with an immediate supplementary source of therapeutic cannabis formulations, which will be packaged and made accessible to patients under the Canndeo brand.
- THC Global anticipates launching cannabis - based products in New Zealand and Australia during the first quarter of 2020.
- Under this agreement, MGC Pharma and THC Global will collaborate for the supply of API (Active Pharmaceutical Ingredients) extracts and other finished formulations, as well as from the Southport Facility of THC, in the near future.
- THC would supply the medicinal cannabis products to patients under its Canndeo brand and in partnership with MGC Pharma would launch three oral liquid formulations-
- high CBD + low THC;
- balanced CBD + THC;
- high THC low CBD.
- Both the companies are actively developing global export market opportunities, and through this agreement expect to be in a position to cost competitive high-quality pharmaceutical grade medicinal cannabis products to the South American, North American, Asian, Oceanic and European markets.
By looking at the recent achievement of THC Global towards developing cannabis derived medicines, with the completion of essential requirements for entering the European market, it distinguishes the company from almost all the other established global cannabis companies.