Cannabis: THC has started making medical marijuana products; shares jump 18pc
Health & Biotech
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Medical cannabis play THC Global Group (ASX:THC) has led small cap cannabis gains on the ASX this morning, adding up to 18 per cent after locking in the final manufacturing licence for its Southport facility in Queensland.
The Therapeutic Goods Administration-granted licence gives THC the go-ahead to manufacture, package and test medicinal cannabis.
THC’s Good Manufacturing Practice (GMP) Licence is recognised in 29 nations across the world as proof it’s a good source of supply — meaning it can now legally make drugs based on cannabis.
Any THC-manufactured drugs from the Gold Coast facility can now be supplied to big markets like Europe, Asia and Canada.
The TGA licence had been the last licensing hurdle for the company, which has now started production at the lab under the guidance of new THC Pharma chief operating officer Angela Macquire.
THC is expected to use Australian-grown cannabis and imported crude extract as source materials as it scales to full production levels with products for domestic and international markets.
CEO Ken Charteris called the GMP licence a “rarity in the cannabis world” and said the company was now wrapping up commercial negotiations with potential clients.
“We anticipate near-term completions of commercial negotiations with multiple parties interested in our scalability, quality of production and ability to compete on price globally,” he said.
THC’s share price was up 12.8 per cent to 44c by late morning.
Roto-Gro International (ASX:RGI) was sitting up 4 per cent at 13c this morning after revealing Oakum Cannabis Corporation had achieved 26 per THC levels from its first harvest of commercial-scale cannabis crops that use RotoGro Rotational Hydroponic Garden Systems.
Agricultural biotech Roots Sustainable Agricultural Technologies (ASX:ROO) also advanced today, gaining 4.8 per cent to trade at 4.4c by late morning after it secured a patent from the Australian Department of Industry, Innovation and Science. The Australian patent is for its Israeli-tested heat exchange stub used at the top of plant pots and grow bags.