Cannabis: THC Global hits milestone with first cannabis production at Southport
Health & Biotech
Health & Biotech
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Pot stock THC Global (ASX:THC) is in business at Southport, the largest medicinal cannabis production hub in the southern hemisphere.
The company announced the release of its completed Canndeo line of cannabis medicines, cultivated using material from the company’s Bundaberg site.
It’s been a busy year for THC, which has spent a fair chunk of 2019 finalising all the relevant permits and licences for cannabis production.
And the company cited today’s announcement as a validation of its farm-to-pharma business model, with the capacity now to scale up production in 2020.
Shares in THC rose 8 per cent in morning trade to 40c.
THC’s Southport facility is expected to be able to process 120,000kg of cannabis biomass annually.
Inputs can be sourced from either the company’s vertically-integrated farming network, or external cultivators that have the relevant licences and permits.
CEO Ken Charteris said the announcement was a “major milestone” for the company, which is now in position to benefit from growth in the medicinal cannabis market both locally and abroad. THC added that it’s also been granted import and export licences from the Office of Drug Control.
“THC Global has ready-to-go production assets within Australia capable of servicing over 50,000 patients, in addition to the global export market,” Charteris said.
The company’s Canndeo brand is a line of prescription-only CBD oral liquid medicines.
Stockhead has contacted the company for comment on which Southport revenue channel it’s most focused on for 2020 — domestic sales of Canndeo, export sales of Canndeo or fee-paying production using material from external cultivators.
Pot stock THC just got a manufacturing licence for its Bundaberg plant
THC Global has landed its manufacturing licence for Southport
THC Global has scored its permit, aims for commercial launch in Southport early next year
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