Less than a week after signing an agreement with European supplier Endoca, The Hydroponics Company (ASX: THC) reported it has teamed up with Israeli medicinal cannabis company BOL Pharma to supply BOL Pharma’s cannabinoid products in Australia.
The letter of intent with BOL Pharma was secured through The Hydroponics Company’s wholly owned subsidiary Canndeo Ltd and encompasses Canndeo importing BOL Pharma’s cannabinoid products for eventual distribution to patients suffering from dementia, epilepsy and other neurological disorders.
According to The Hydroponics Company chief executive officer David Radford this latest agreement is part of The Hydroponics Company’s “dual supply” strategy to import medicinal cannabis products as well as developing its own for the Australian market.
Initially, BOL Pharma’s products will be used in a clinical trial, with a view to being used in further clinical trials during 2018.
BOL Pharma chief executive officer Tamir Gedo said the agreement with The Hydroponics Company and Canndeo was gave BOL Pharma leverage into Australia’s medicinal cannabis market.
He added BOL Pharma anticipated this was the start of a “long and productive collaboration”.
BOL Pharma has been developing medicinal cannabis products in Israel since 2007 and sources its 99% pure pharma grade CBD, THC and other cannabinoids from its own certified cultivation and production facilities.
Last week, The Hydroponics Company announced Canndeo has secured an agreement with Endoca to supply the Australian market with Endoca’s certified medicinal cannabis including high purity CBD oil, capsules and a combined CBD and CBDA oil.
Meanwhile, Canndeo has gained its cannabis research and medical licences, with the remaining manufacturing licence pending approval. Once the manufacturing licence is secured, Canndeo will be able to legally operate tis research, development and growing facility in Australia.
Since the medicinal cannabis market was legalised in Australia 12 months ago, more than 20 small cap cannabis stocks are now operating on the ASX.
Global demand for medicinal cannabis is forecast to hit $500 billion by 2029, making it a very lucrative market to break into, with the US alone accounting for US$50 billion by 2026.
In the past month, The Hydroponics Company’s stock price has sky-rocketed a massive 400% from A$0.23 on 20 October to today’s early afternoon high of $1.15 per share.