THC Global Group Ltd's (ASX:THC) new medicinal cannabis manufacturing licence provides Eve Investments Limited (ASX:EVE) with the ability to progress research and development of its cannabis honey products.
By way of agreements with THC Global, EVE now has a viable option to access THC's cannabis licensing.
A manufacturing licence, which was granted last week, gives THC Global the full scale of licensing required in Australia for the research and production of medicinal cannabis products.
The agreements with EVE encompass site lease, tea-tree off-take, cannabis off-take, and are directed towards the organic farming operations of THC Global as well as the development of novel tea-tree and cannabis products by both companies.
THC Global is producing a variety of Melaleuca Tea Tree extracts at its Southport facility on behalf of Eve Investments.
THC's chief executive officer Ken Charteris said: “Having now received this manufacture licence we look forward to further progressing our partnership with EVE, particularly with respect to the vast opportunities to develop the next generation of medicinal cannabis products.”
EVE investment director Ben Rohr said: “We are excited to be able to move to the next stage in the research and development of our cannabis honey products via our agreement with THC.
“The granting of this licence is an important step in this process.”
EVE, via its 100% subsidiaries Jenbrook and Meluka Honey, has an agreement with THC Global for the planned growth of cannabis at the site of its tea tree plantation.
Under the agreements EVE will be provided with access to THC Global’s medicinal cannabis for use in product development by Meluka Honey of novel cannabis blended products including incorporation of Melaleuca Tea Tree extract from EVE’s tea tree plantations.
Additionally, THC Global’s current and planned operations in Australia, North America and Asia could positively assist in the production and distribution of proposed Meluka Honey cannabis and tea tree honey products.
With THC Global having secured a manufacturing licence for medicinal cannabis, EVE now has a viable option covering all the medicinal cannabis licensing requirements within Australia to submit a permit for the development of its planned cannabis honey products.
The company has previously leased a portion of organic farmland from EVE for the cultivation of medicinal cannabis.
The leased land is the subject of a medicinal cannabis cultivation licence lodged by THC Global last year, which has now progressed to the ‘assessment phase’ by the Australian Office of Drug Control.
The licence is expected to be received this year and once received THC will be licensed to cultivate medicinal cannabis on EVE’s site with additional expansion into a larger area on the site in progress.
THC Global’s manufacture licence receipt is a critical milestone in the joint strategy between EVE and THC Global towards development of medicinal cannabis honey as well as other potential future activities between companies.
EVE has also progressed its R&D program for the production of a specialised melaleuca tea tree extract at THC’s Southport facility.
A variety of extracts have been produced from the leaf of EVE’s old growth melaleuca plantation, which will form the basis of many Meluka Honey’s new products.
The advanced technology available at THC’s Southport facility for botanical extractions is assisting EVE in advancing the pathway to market for its tea tree honey-based products.