THC Global Group Ltd (ASX:THC) (FRA:9TH) is well-positioned to be a globally significant exporter of TGA and EU GMP medicinal cannabis medicines with the capacity to process large volumes of cannabis with this strategy boosted by recent positive policy changes within the US and at the United Nations.
As owners and operators of one of the world’s largest medicinal cannabis extraction facilities by potential volume, the company welcomes a shift towards more positive attitudes to medicinal cannabis globally.
UN adoption of WHO recommendations
Last week the UN decided to remove cannabis and its derivatives from schedule IV of the 1961 Single Convention on Narcotic Drugs following recommendations from the World Health Organisation (WHO).
This emanated from WHO recommendation 5.1, which recognises the medical value of cannabis and will see it removed from Schedule IV of the 1961 Convention - reserved for substances with ‘particularly dangerous properties’ and little or no therapeutic value.
UN adoption of the WHO recommendations acknowledges the medicinal usefulness of cannabis and clarifies that cannabidiol (CBD) is not under international control.
Positive US policies
The company is also encouraged by positive policy and legislative stance changes within the United States of America.
The US House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act to decriminalise cannabis for the first time on a national level.
This Act removes cannabis from the US Controlled Substances Act and aims to erase certain federal convictions.
The bill was passed in the lower chamber 228 to 164 on December 4, 2020, and will now move to the Senate for voting.
Operation expansion
THC’s operations in Queensland expanded during the COVID-19 travel restrictions with the leasing of an additional adjacent warehousing facility in Southport.
The company also started its first commercial production of TGA and EU GMP medicinal cannabis medicines from the Southport Facility.
Site visit by CEO and COO
The CEO and COO completed a site visit to the Southport Facility following the opening of domestic borders to review site capacity for hard pressed encapsulation and other product finished good forms to expand manufacturing capabilities.
Accordingly, this first visit was critical to the full strategic review of the Southport operation and in advancing several strategic initiatives, including:
- Progressing the company’s expansion of manufacturing capability into further finished dosage forms and increased scale including TGA approvals and validation where required;
- Increasing the company’s S8 storage and warehousing capacity to enable a storage and logistics offering for medicinal cannabis medicines under the Medimar platform including additional licencing required from the Queensland Department of Health;
- Positioning Southport as the largest TGA and EU GMP extractor and additionally now the logistics and distribution hub for medicinal cannabis medicines in Australia and the wider South East Asian with the Medimar platform; and
- Preparing the Southport Facility and the team for the increased production volumes of medicinal cannabis medicines and the new logistics and distribution offering to begin in Q1 2021.
Change of name to Epsilon Healthcare
THC expects that the upcoming general meeting of shareholders next month will approve the company’s name being changed to Epsilon Healthcare Limited.
This will follow ASX approval of both the Notice of Meeting and confirmation of a new ASX code for the company – with the ASX yet to confirm whether ASX:EPN is available.
The company’s executive search for the next chief executive officer is progressing well with further updates to be provided in early 2021.
THC’s board now has a shortlist of high calibre candidates that it is reviewing and has started the process of conducting interviews with the shortlisted candidates.