This agreement takes advantage of THC Global’s Southport’s Facility as a high volume world-class pharmaceutical production facility.
Cannatrek is also developing a new facility in Shepparton, Victoria, which was granted Major Project Status by the Australian Government as a new greenfield development.
The first supply of dried cannabis flower from Cannatrek under this arrangement is expected to begin next quarter with first Cannatrek branded medicines to be released by THC Global in the December quarter of 2020 following production and validation.
Chief executive officer Ken Charteris said: “This is a significant milestone for THC Global and Cannatrek but also for the Australian medicinal cannabis industry.
“By utilising our Southport Facility to produce high-quality medicinal cannabis medicines for Cannatrek’s brand as well as our Canndeo brand, we are increasing the number of Australian produced medicines available to patients and supporting the development of the industry as a whole.”
Improving patient access
Cannatrek chief executive officer Tommy Huppert said: “The Australian medicinal cannabis industry is maturing rapidly in 2020 and the THC Global-Cannatrek production agreement provides excellent opportunities for deploying both agronomic and manufacturing excellence in the supply chain.
“More importantly the agreement will allow patients to have access to 100% Australian made medicinal cannabis for therapeutic purposes, at a more affordable price.”
The terms of the agreement include:
- In return for the extraction and manufacturing, Cannatrek to deliver THC Global an equal quantity of dried cannabis flower used in Cannatrek’s production for THC Global’s own use in its medicines;
- Minimum annual supply by Cannatrek of 480 kilograms of dried flower to THC Global – 240 kilograms for production of Cannatrek medicines and 240 for THC Global’s Canndeo medicines; and
- In a separate agreement with Tetra Health, Cannatrek’s medicines to be made available for prescription and supply through Tetra’s network of more than 600 prescribing physicians.
Cannatrek will supply dried cannabis flower to THC Global for the manufacture into oil-based medicinal cannabis medicines at its Southport Facility.
Through THC Global’s ownership of the extraction process, on-site laboratories for product development and validation, and a pathway to patient access through Tetra Health, THC Global can offer a complete solution for expert cannabis cultivators like Cannatrek.
Beneficial for Australian cannabis industry
Alongside THC Global’s low cost of medicines production at its Southport Facility, this arrangement is a low-cost means of acquiring cannabis plant material to scale-up proprietary medicines production.
This arrangement with Cannatrek is greatly beneficial for the Australian medicinal cannabis industry and for Australian patients by delivering more choices of high-quality Australian produced medicines.
THC Global shares have been up more than 9% to 41 cents intra-day.