THC Global Group Ltd (ASX:THC) has been granted a back-to-back trading halt by the ASX with a capital raising announcement pending.
The company sought the halt in order to consider, plan and execute the capital raising.
This halt will remain in place until the beginning of regular ASX trade on Monday, June 22, or when an announcement is released to the market, whichever occurs earliest.
THC Global's shares last traded at 38 cents and have risen from 21.5 cents at the close on March 31, reaching 44 cents at the close on June 3.
Production deal with Cannatrek
THC recently agreed to a cannabis supply and manufacturing agreement with Cannatrek, a leading grower of medicinal cannabis in Australia.
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.