THC Global Group Ltd (ASX:THC) has received an expanded commercial cultivation permit and has commenced production towards the supply of medicinal cannabis medicines to an initial 6,000 Australian patients.
Under the law, cultivation includes all steps up to, but not including, harvest.
The company will exercise the permit at the cultivation facility at Bundaberg, Queensland, as well as associated research permits and licence amendments.
THC's Bundaberg growing site consists of 6.6 hectares of hydroponic greenhouses.
This will support at least an initial 3,000 patients with 100% Australian medicinal cannabis.
Shares have been up almost 20% to an intra-day high of 37 cents.
The medicinal cannabis will be supplied direct to pharmacies, clinics and hospitals, meeting the requirements of Australia’s Narcotic Drugs Act and Regulations.
With Australian patients currently paying from $300 to $600 per month for their legal cannabis medicines, this market is a good revenue opportunity for the company.
Aiming to supply from June quarter 2020
THC Global’s CEO Ken Charteris said: “We are committed to bringing lower costs and higher quality to Australian patients.
“Our complete control of cannabis biomass, manufacturing, supply, and support will help achieve this.
“We expect to supply at least an initial 6,000 patients using Canndeo medicinal cannabis on an ongoing basis commencing from Q2 2020.
“Further Australian patients and global exports will follow.”
Uniquely positioned for future clinical trials
A commercial cultivation permit, manufacturing permit and pharmaceutical GMP licence are prerequisites for Australian cannabis medicines to have valid data generation in study and clinical trials.
THC Global aims to commence trials from the September quarter 2020, with first trials focusing on Australian patient groups with high CBD dosage requirements.
Notably, the company's Southport facility is licensed for the production and supply of clinical trial material.