Today, THC Global Group Limited [ASX:THC] announced they have been granted a medicinal Cannabis licence by the Australian Office of Drug Control (ODC), as well as an Australian export licence, which includes a binding intention with EVE Investments Limited [ASX:EVE].
Earlier today, THC Global’s share price was trading 6.81% higher to $0.47. At time of writing, shares are trading at $0.46.
What do these licenses mean for THC Global’s share price?
Gaining these licenses is a significant step for THC as it puts the company in a better position in its manufacturing capabilities.
It also ensures the cannabis company has greater global reach.
Specifically, securing the Medicinal Cannabis Export licence is a necessary step for THC to export cannabis from Australia, and a key component in developing a pathway for THC Global’s Australian cannabis.
The binding intention with EVE Investments allows THC to lease an additional USDA certified organic land, meaning the total leased land for the Northern NSW cannabis cultivation has an extended potential of 150,000m2.
The licence will expand its Northern NSW cannabis cultivation project, as well as allow the company to explore new productive development opportunities.
Naturally, this is subject to whether the land is suitable for lodgement of the cultivation license application with the ODC and must be confirmed by THC.
THC says it is committed to the off-take agreement with EVE, where EVE Investments will be able to buy cannabis cultivated form the NSW, which will then be used in EVE’s Meluka Health brand.
What’s next for THC Global?
As we edge further and further into 2019, operational highlights and production status are becoming integral to THC Global’s wellbeing.
Currently, THC has a 60,000m2 land leased for cultivation of medical cannabis, but if the land leased is increased then this could help benefit manufacturing and production. THC has already progressed to ‘assessment phase’ by the ODC, which means is it likely to be received this year.
That’s exciting stuff for THC investors, as the license will allow an extended project which is set to provide biomass for production at its biopharmaceutical manufacturing facility.
THC is focussing on increasing cannabis extraction activities which helps to monetise its excess production capacity.
More to come.
For Money Morning
PS: Download your free report to learn four of the hottest pot stocks on the ASX right now.