THC Global’s (ASX: THC) wholly-owned subsidiary Canndeo has achieved a major milestone by securing a manufacturing licence to produce cannabis extracts and tinctures in Australia.
The Australian Office of Drug Control granted the licence to Canndeo, which now completes THC’s vertical integration strategy to cultivate its own cannabis strains, harvest and process the material to produce its own cannabis-based products for Australian and international markets.
“We are very pleased to be granted a manufacture licence, which now completes our ‘farm to pharma’ model,” THC chairman Steven Xu said.
“This licence is a significant milestone for the company, with the next targets being the development of a new generation of proprietary medicinal cannabis products and securing our revenue outlook through offtake agreements and furthering our existing global partnerships,” Mr Xu added.
THC’s global growth plans
Via its subsidiaries, THC now holds the three key cannabis licences in Australia that allow it to research, cultivate and manufacture medicinal cannabis products in the country.
Additionally, THC has firmed up “significant cannabis growing capacity” via multiple cultivation projects, with 60,000 square metres of leased land subject to a cultivation permit.
THC also has an agreement with EVE Investments (ASX: EVE) to lease additional land bringing its cultivation site potential in northern New South Wales up to 150,000sq m.
In readiness of manufacturing medicinal cannabis products, THC owns a pharmaceuticals bio-manufacturing facility with an attached testing and product development laboratory.
As well as serving Australian medicinal cannabis demand, THC plans to sell its products into Canada, Europe, Asia and the Middle East through either local operations or partnerships.
THC has a strong presence in Canada including a property in Nova Scotia currently being developed into a large scale cannabis production site.
The company secured the site in March this year, with first stage development estimated to yield 37,000kg of dried flower annually.
THC’s share price shot up more than 13% on the manufacturing licence news to sit at $0.50 by mid-morning.