THC Global Group Ltd (ASX:THC) has entered into a binding agreement to conduct due diligence for the acquisition of a Canadian medicinal cannabis company.
The Canadian company is in the final stages of becoming a licenced producer of cannabis.
On acquisition, THC Global will complete the build-out of a full-scale cannabis growing facility which will be able to offer direct retail sales in addition to supporting other commercial sales.
This deal provides the opportunity for THC Global to own a full-scale cannabis growing facility in Canada in addition to its Australian facilities.
THC Global’s CEO Ken Charteris said: “THC Global is looking at entering new international markets to further cement its presence as a full-scale global cannabis producer.
“Canada is a logical next step in the company’s global expansion plans given our existing Canadian presence with Crystal Mountain Products.
“Our focus in identifying new global opportunities will be to seek acquisition assets and strategic partnerships that lead to near-term revenue generation.
“Further, the opportunity to enter the retail sector in Canada in the coming months is very attractive and will offer deep synergies with our Crystal Mountain Products business and may lead to future supply opportunities from our existing Australian production facilities.”
Plans for vertically integrated cannabis business across North America
THC Global’s objective is to pursue a build out of a vertically integrated cannabis business across North America through its subsidiary Vertical Canna Inc.
It plans to do this through strategic acquisitions and partnerships with a focus on short paths to profitability with strong potential for value development.
In parallel to this strategy, Vertical Canna is currently developing a new retail cannabis and equipment brand which will soon be available across stores in Canada.
A high-growth cannabis business
The pursuit of a stronger presence in Canada is in response to positive feedback received from the Canadian capital markets and the broader cannabis sector towards THC Global.
THC Global is as a high-growth cannabis business with the capacity to produce large quantities of pharma-grade product in the near term.