The Hydroponics Company jumped more than 40 per cent on Monday after announcing it had won medicinal cannabis licence from the federal Office of Drug Control.

The Office of Drug Control is the national regulator of drug manufacture, imports and exports and the cultivation of cannabis for medicinal purposes.

The Hydroponics Company — ASX code THC — jumped 10c to 33c in Monday lunchtime trade.

The government granted THC’s subsidiary Canndeo a medicinal cannabis licence on Friday — allowing it to grow cannabis plants for medicinal use.

THC was worth $10.6 million on Monday after its stock jumped to 33c. Source: Investing.com

THC also has a research licence, granted in July, and is waiting on a manufacturing permit which would allow it to make medicinal cannabis products in Australia.

THC chief David Radford told Stockhead he was growing a revenue-generating business in Canada — and would now focus on building the use of medicinal cannabis in Australia.

THC had a two-pronged strategy of importing products while also planning to build a manufacturing facility to become a vertically integrated cannabis product developer.

Mr Radford was appointed chief executive in mid-October.

THC spent $661,000 in the last quarter and expects costs of $1 million this quarter.