Cannabis investor EVE is up 12 per cent this morning after finalising a deal to lease its tea tree plantation to fellow pot stock The Hydroponics Company (THC).

The shares moved to 0.9c in early trade with 11 million shares changing hands. (It has 2.2 billion in circulation though).

In May, EVE struck a deal to lease part of a tea tree plantation that is recently bought in northern NSW to THC for growing medical cannabis.

However, the growing of medicinal cannabis on the site is still subject to “statutory and regulatory approvals”.

In May, THC confirmed it had applied to the Office of Drug Control to gain the relevant licences to grow organic medicinal cannabis on the site.

The site will become the main cannabis source for a large-scale THC marijuana manufacturing operation in Queensland and includes a sales agreement with EVE’s half-owned subsidiary Meluka Health.

Meluka plans to use THC’s medicinal cannabis in its honey products.

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