THC’s Share Price Up 10% after Gaining Licence| ASX:THC
Today, THC Global Group Ltd’s [ASX:THC] wholly owned subsidiary, THC Parma Pty Ltd, received a manufacturing licence from the Australian Office of Drug Control for its Southport Manufacturing Facility.
At time of writing, THC’s share price is trading at 47 cents, up 10.71%.
THC’s most significant manufacturing licence in Australia
Gaining this manufacturing licence at its Southport Manufacturing Facility is another great milestone for THC.
According to today’s announcement, initial yearly production from Southport will be more than 12,000kg of Good Manufacturing Practices (GMP) compliant Active Pharmaceutical Ingredient (API) isolates, or equal amounts of full and broad spectrum extracts.
Which will be turned into cannabis medicines like oil, tinctures and capsules.
Chief Executive Officer Ken Charteris commented on this achievement:
‘The Manufacture Licence we have now received is the most significant Manufacture Licence granted in Australia to date, as THC Global has the largest bio-pharma extraction facility in the Southern Hemisphere.
‘We are ready to commence GMP API production of medicinal cannabis at globally significant volumes and at very competitive prices.
‘We expect to be supplying Australian patients with Australian products with Australian produced medicinal cannabis by early 2020, as well as responding to the rapidly expanding global demand for pharma-grade GMP API isolates and formulated medicines.’
The product produced from Southport will be available for clinical and study trails in Australia, and discussions about exporting to Asia are set to start soon.
THC expects to complete its product validation by Q4 this year, and for commencement of its cannabis production to start in early 2020. The company expects this production commencement will bring significant revenue generation to the business.
THC’s 2019 share price outlook
The manufacturing licence is really a breakthrough for THC Global, positioning it in one of the biggest growth industries on the market.
For investors interested in cannabis, this is exciting news. It is also potentially exciting news for THC’s share price outlook — more production, means more product and hopefully more revenue.
THC can only hope that this is the right time and right market for cannabis medicine, which many analysts are arguing it is.
Chairman Steven Xu left shareholders with this note:
‘The licencing of THC Global’s Southport Manufacturing Facility cements the Company’s position as being primed and ready to be a significant player in the global cannabis market, particularly within the Asia Pacific region. We have been able to secure industry leading facilities including two licenced manufacturing facilities, an experienced executive team, and the technical expertise to deliver success.
‘We look forward to supplying product to patients in need in Australia and globally once commercial production commences in early 2020 from our Australian cannabis production assets.’
For Money Morning
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