Expands Cannabis Cultivation and Granted Export Licence
Sydney, May 15, 2019 AEST (ABN Newswire) - THC Global Group Limited (THC Global or the Company) (ASX:THC) (HDRPF:OTCMKTS) is pleased to provide an update on the Company's domestic cannabis operations, including securing an Australian export licence, expanding the Company's Northern NSW cannabis cultivation project, and exploring new product development opportunities.
- Medicinal Cannabis Export Licence granted by the Office of Drug Control
- THC Global expands Northern NSW Growing Capacity with agreement to lease additional land up to 150,000m2 on same property
- Licence application for existing Northern NSW cultivation site progressing
- TGA in-principle advice received allowing both cannabis and non-cannabis production at THC Global's Manufacturing Facility, subject to licencing
- Pilot scale extraction of EVE tea-tree product completed at Manufacturing Facility
Medicinal Cannabis Export Licence Granted
THC Global confirms that it has been granted a Medicinal Cannabis Export Licence by the Australian Office of Drug Control (ODC) which is required in order to be able to export medicinal cannabis from Australia. Securing this licence is a key milestone in developing a future export pathway of THC Global's Australian cannabis, and places THC Global in an increasingly stronger position to take advantage of its industry leading manufacturing capability and its global reach.
Northern NSW Cultivation - Increased Cultivation Capacity
THC Global has confirmed its binding intention with EVE Investments Limited (ASX:EVE) to lease additional USDA certified organic land to bring the total leased land for the Northern NSW cannabis cultivation site up to a potential 150,000m2. The lease is subject to THC Global confirming that the additional land is suitable for lodgement of a cultivation licence application with the ODC.
The currently leased 60,000m2 land is the subject of a medicinal cannabis cultivation licence lodged by THC Global last year, which has now progressed to "assessment phase" by the ODC and is expected to be received this year. Receipt of this licence will allow for the first part of the extended project to commence which is expected to deliver biomass for production at THC Global's biopharmaceutical manufacturing facility as well as for supply to EVE under an off-take agreement for Meluka Health's proposed cannabis honey product.
Product Development at Manufacturing Facility
THC Global has received in-principle advice from the Therapeutic Goods Administration (TGA) advising that subject to relevant licencing and approval of procedures, both cannabis and non-cannabis products will be able to be produced from the Company's Queensland bio-pharmaceuticals extraction facility. This will provide THC Global with the ability to monetise excess production capacity through extraction of other botanicals for medical, pharmaceutical, or nutraceutical purposes as the Company progressively increases cannabis extraction activities. Successful pilot-scale extraction of tea-tree product has been completed for EVE as part of the collaboration agreement with THC Global.
The potential to conduct other complex botanical extractions at large scale is being explored, which may enable the formulation of novel cannabis-blended products for sale into other markets.
THC Global remains committed to the cannabis off-take agreement with EVE whereby EVE will be able to purchase cannabis cultivated at the Northern NSW site for producing cannabis honey products under their Meluka Health brand. Additionally, THC Global's expansion into new markets such as Canada, New Zealand, and the Asian region may provide stronger routes to market for EVE's cannabis honey product whilst also expanding THC Global's product offering internationally.
Ken Charteris, Chief Executive Officer of THC Global commented: "We are pleased to be able to secure additional land for our cannabis cultivation activities on EVE's USDA certified organic land in Northern NSW. We will formally commit to the lease and settle terms upon confirmation that THC Global will be able to receive a medicinal cannabis cultivation licence over this extension.
Additionally, our success in using our bio-pharmaceutical manufacturing facility for other complex botanical extractions, including EVE's tea-tree product, confirms that we may be able to explore the development of novel cannabis-blended formulations in the near future."
Ben Rohr, Investment Director of EVE commented: "We are very pleased with the initial work we have conducted with THC Global, including pilot extraction at their bio-pharmaceutical manufacturing facility in Queensland. The ability to now explore new product development opportunities enabled by our partnership, taking advantage of THC Global's significant botanicals extraction capabilities is a major asset to both parties. We look forward to THC Global commencing cannabis cultivation on our property once licencing is completed, which will give Meluka Health access to high quality cannabis for our proposed cannabis honey products".
EVE Investments Limited (ASX:EVE) [eveinvestments.com.au]
EVE Investments invests in companies with a focus on the medical nutrition sector. The Company's investment strategy has a three pronged approach.
1. To invest in businesses that are in the early growth phase with the aim to support their expansion programs.
2. To identify products that have unique medicinal properties and a global reach application.
3. Preference for natural organic products that have demonstrated medicinal benefits.
For further information, please visit www.eveinvestments.com.au and follow us on Twitter @EVEInvestments Meluka Health Pty Ltd is a subsidiary of EVE Investments and is a wellness and nutrition company that develops and sells its naturally derived, organic and ecologically pure products created using its old growth Australian Melaleuca tea tree plantation which are acclaimed for their medicinal activity.
About THC Global Group Limited
THC Global Group Limited (ASX:THC) (OTCMKTS:HDRPF) (FRA:9TH) operates under a 'Farm to Pharma' pharmaceutical model, now holding all three key cannabis licences being a Cannabis Research Licence, a Medicinal Cannabis Licence (Cultivation), and a Manufacture Licence through its domestic medicinal cannabis subsidiaries THC Pharma and Canndeo. THC Global has secured a significant cannabis growing capacity over multiple cultivation projects and owns a pharmaceuticals bio-manufacturing facility with attached testing and product development laboratory. THC Global is in prime position to commence medicinal cannabis production to service both domestic patients and the global export market. THC Global is active globally with operations in Australia, New Zealand, and Canada and partnerships across Europe, Asia, and the Middle East. In addition to its core Australian medicinal cannabis assets, THC Global has a significant Canadian presence – both in cannabis and in hydroponics equipment. THC Global's Canadian cannabis operation, Vertical Canna, holds property in Nova Scotia, Canada being developed into a large scale cannabis production site. THC Global's hydroponics equipment division, Crystal Mountain, is a revenue generating manufacturer, wholesaler, and retailer of hydroponic equipment and supplies.