Australia’s THC Global (ASX:THC) announced on Wednesday the company has been granted a licence to export medical cannabis by the nation’s Office of Drug Control.
Australia’s Federal Government decided in January last year to permit the export of medical cannabis products. The announcement allayed concerns the country was heading for a glut of medicinal cannabis given the number of players jumping into the industry (and how difficult it continues to be for patients to access products).
“Securing this licence is a key milestone in developing a future export pathway of THC Global’s Australian cannabis, and places THC Global in an increasingly stronger position to take advantage of its industry leading manufacturing capability and its global reach,” stated the company.
THC Global, formerly known as The Hydroponics Company, says it operates under a ‘farm to pharma’ pharmaceutical model and is already providing medicinal cannabis products to Australian patients through existing access schemes. However. t seems at this point the products are sourced through another supplier.
THC Global currently has two Australian based growing facilities. The company says its Queensland site is expected to produce 850,000 clones per year to seed its New South Wales grow site and up to 20,000m2 of partner sites. Back in December 2018, THC Global subsidiary Canndeo Limited was granted cultivation and production licences for its high cannabidiol (CBD) strains to be grown at the facility.
The NSW facility currently has capacity for up to 600,000 plants per year. However, also announced Wednesday was THC Global’s binding intention with EVE Investments Limited (ASX:EVE) to lease additional USDA certified organic land from EVE, which will boost the site from the current 60,000m2 up to a potential 150,000m2.
“We will formally commit to the lease and settle terms upon confirmation that THC Global will be able to receive a medicinal cannabis cultivation licence over this extension,” said THC Global CEO Ken Charteris
The cultivation licence for the NSW facility has not yet been granted – it is currently in the ODC’s “assessment phase” and the company expects to receive it this year.
Cannabis produced at the NSW site will supply THC Global’s bio-pharmaceutical manufacturing facility and EVE, the latter under an off-take agreement for Meluka Health’s proposed cannabis honey product. Eve holds a 100% interest in Meluka Health.