The Hydroponics Company (ASX: THC) has clinched its medicinal cannabis licence, leaving only its manufacturing licence left to be granted before it can legally operate its planned research and development and growing facility in Australia.
The Hydroponics Company chief executive officer David Radford said securing the medicinal cannabis licence was another milestone in the company’s strategy to supply medicinal cannabis products to Australian patients.
“The issuing of this licence supports the strategic growth plan, which, as advised in the recently released quarterly, is focused on a build out of the existing Canadian business and an accelerated path to market for medicinal cannabis in Australia,” Mr Radford said.
On Friday 27 August, the Australian Government’s Office of Drug Control issued the approval to The Hydroponics Company’s wholly owned subsidiary Canndeo.
This latest licence follows the cannabis research approval which was given in July.
The Hydroponics Company has planned a research and manufacturing facility in Australia to establish a domestic legal medicinal cannabis source.
Via Canndeo, The Hydroponics Company will develop a high purity cannabidiol (CBD) to be used in people suffering from dementia, epilepsy and other neurological disorders.
The Hydroponics Company is focussed on Australian and Canadian markets for its medicinal cannabis.
Due to take effect in mid-2018, Canada’s recently passed legislation will allow adult cannabis use. The Hydroponics Company anticipates the new market will grow to about $10 billion.
Meanwhile, in Australia, The Hydroponics Company plans to meet demand by importing and manufacturing locally.
The company has also inked an agreement with Sinapse to get a foothold into distributing its products via the Medicinal Cannabis Medicines Portal. This portal is believed to facilitate doctors prescribing, regulatory compliance and pharmacy wholesaler order and dispensing of medicinal cannabis products.
Additionally, Canndeo is in final negotiations regarding supplying medicinal cannabis products for Australian-based clinical trials.
The Hydroponics Company’s stock jumped almost 40% in mid-morning trade on the back of the announcement.