Cannabis: THC is allowed to export, but still no sign of one crucial licence
Food & Agriculture
Food & Agriculture
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Queensland pot grower THC Global (ASX:THC) has got an export licence but there is still no word on when that elusive manufacturing permission will come through.
The company now has every licence and permit it needs to get cultivation and R&D moving in Australia — except manufacturing.
It did however receive in-principle advice from the Therapeutic Goods Administration (TGA) that it’ll be allowed to make cannabis and non-cannabis products at its prized Southport, Queensland manufacturing site.
THC says it means it can use excess capacity not dedicated to cannabis, but it also means it can start using and making money from the currently-dormant plant immediately for non-marijuana products, instead of waiting for licences.
THC has already run a tea tree extraction pilot for Eve Investments (ASX:EVE) at the plant.
THC also wants to lease more land in northern NSW to create a 150,000m2 organic growing site, and says the original 60,000m2 parcel has progressed to “assessment phase” of licensing, for which Eve is the exclusive offtaker to make cannabis honey.
Marijuana licensing is controlled by the Office of Drug Control (ODC), including for manufacturing which is an area normally looked after by the TGA, the drugs regulator.
Almost all company executives in Australia have expressed frustration to Stockhead about the overlap between the two organisations, saying it’s still unclear where the ODC’s jurisdiction ends and where the TGA’s begins.
AusCann (ASX:AC8) chairman Mal Washer said it was a shame the ODC didn’t stick to supervising the growing side, and leave manufacturing to the TGA, which already looks after Australia’s large opioid manufacturing industry as well as patient access to cannabis.
AusCann has all of the licences and permits it needs, but is waiting on partners Cann Group (ASX:CAN) to get manufacturing permission and Tasmanian Alkaloids to receive its permissions.
A spokesman for THC told Stockhead they hope to have manufacturing licences for both the Southport plant and a smaller facility on-site at their Queensland growing hub “in the near term”.
Cann Group has sold its first cannabis.
The Victorian government has taken delivery of cannabis resin from the company’s Southern facility in Melbourne for use by children with severe epilepsy. Cann won the tender in October last year. It hasn’t said how much the contract is to deliver, but it’s understood it is not a large volume.
Cann says this is the first Australia-grown product to be delivered to Australian patients.
Hemp grower Elixinol Global (ASX:EXL) has been given CBD processor authorisation by the New York State Department of Agriculture Markets.
What this means is that in addition to national quality standards, Elixinol’s hemp will also carry New York state approval as well.