Today, THC Global Group Ltd [ASX:THC] confirmed it has been granted a medicinal cannabis manufacturing licence, providing the company all licensing needed for the research and production of medicinal cannabis products in Australia.
Despite THC’s share price opening higher today, shares have now closed lower at 46 cents, down 1.09%.
The fall in price could have something to do with the processing time of the licence, which under Australia’s Office of Drug Control has no statutory processing time.
Nonetheless, the favourable agreement news was met with an update on their agreement with Eve Investments Ltd [ASX:EVE].
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THC’s partnership with Eve Investments
Due to its agreement with THC, Eve now has a practical way to use the company’s manufacturing licensing for research and development of its cannabis honey products.
Eve’s Investment director, Ben Rohr, said:
‘We are excited to be able to move to the next stage in the research and development of our cannabis honey products via our agreement with THC. The granting of this license is an important step in this process.’
According to the announcement, the agreement includes ‘site lease, tea-tree-off-take, cannabis off-take, and are directed towards the organic farming operations of THC Global.’
THC already produces a range of melaleuca Tea Tree extracts with Eve, at its Southport facility.
CEO of THC Global, Ken Charteris, commented on the agreement:
‘Having now received this Manufacture Licence we look forward to further progressing our partnership with EVE, particularly with respect to the vast opportunities to develop the next generation of medicinal cannabis products.’
THC’s share price outlook
THC’s manufacturing licence is an important milestone for the partnership between THC and Eve, particularly its dealings with medicinal cannabis honey.
As for THC’s share price outlook, investors will have to wait to see further development of THC’s cannabis production.
So, shareholders could see further volatility in prices as the company continues its growth path into the cultivation of cannabis products.
More to come.
Editor, Money Morning
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