The group previously known as The Hydroponics Company Ltd has received an Australian Office of Drug Control (Australian ODC) manufacture permit for the facility where it can make medicinal cannabis.
This facility can support a minimum of 250,000 Australian patients with affordable Australian produced medicines as well as supplying the global export market.
Australian Health Minister Greg Hunt opened the facility pharmaceutical manufacturing facility on Queensland’s Gold Coast in August 2019.
“A major milestone”
THC group chief executive officer Ken Charteris said, “This is a major milestone for THC Global, and for the Australian medicinal cannabis industry as a whole, with THC Global now able to operate the largest pharmaceutical bio-floral extraction facility in the Southern Hemisphere.
“Our scale and technology will enable us to offer patients a higher quality, more consistent cannabis medicine at a significantly lower cost than the current imported products available to Australian patients.”
Shares have been up as much as 14% to an intra-day high of 41.5 cents.
THC reported the permit gave the group the largest cannabis medicinal cannabis extraction capacity in Australia.
It said, “The manufacture permit allows the company to now accept medicinal cannabis plant material from any Australian licensed and permitted cultivator, including from the company’s own cultivation facilities, and to immediately commence production of Australian medicinal cannabis medicines.”
Product validation a focus
THC already has Schedule 4 pharmacy medicines and Schedule 8 controlled substances manufacture and wholesale licences from the Australian ODC for the facility.
Now that the company is licensed and permitted for medicinal cannabis production at Southport, it’s also expecting a reduction in R&D costs as it will be able to use its own own-site product testing laboratory.
Two weeks ago Charteris spoke to Proactive and acknowledged the company was in “go mode” as it focused on product validation at its two analytical labs this quarter.
The other is facility in Bundaberg, also in Queensland.
Charteris said, “Now we can … start preparing ourselves for the first batch of cannabis to come into our facilities for validation before the end of the year.”
The company plans to spend about A$2.3 million in the December quarter to progress its work program.
Group reports revenue
THC is also in the business of hydroponics equipment manufacturing and distribution and wrote A$1.1 million in customer receipts during the period, with its Canadian hydroponics subsidiary Crystal Mountain, a notable gainer.
The Canadian hydroponics equipment division reported unaudited year-to-date revenue of more A$3 million in the September quarter.
Its quarter-over-quarter cash receipts increased to A$1 million, an 80% gain despite the market.
The growth company collected A$325,000 from investors exercising options last quarter and expects to continue writing revenues as the financial year progresses.
Among these are expected additional options exercises this quarter.
THC reports its results on an annual basis in about March, tending to hold an annual general meeting about May.