Secures Northern NSW Site and Off-Take Agreements
Sydney, July 24, 2018 AEST (ABN Newswire) - The Hydroponics Company Limited (
ASX:THC) (HDRPF:OTCMKTS) (THC or the Company), Australia's leading Medicinal Cannabis company(see Note below) advises that the conditions precedent have been met for the lease of a Northern NSW property to be used for the growing of medicinal cannabis strains as a primary source for its own manufacture within its Southport manufacturing facility.
Key Points
- Lease for Northern NSW cannabis growing site secured
- THC expediting regulatory approval lodging and site development for growth of THCowned strains as well as imported strains from international commercial partners
- Northern NSW site to be established as primary cannabis source for THC's large-scale manufacturing operation in Queensland
- Completed off-take agreement for THC's medicinal cannabis for use by Meluka Health
- Completed supply agreement for Meluka's tea-tree extract for use in THC medicinal cannabis products
The meeting of the conditions precedent and agreement to terms of the final agreements follow the Company entering into a Binding Term Sheet in May 2018 between THC, Jenbrook Pty Ltd (Jenbrook) and Meluka Health Pty Ltd (Meluka Health).
The terms agreed relate to the following:
- Medicinal cannabis supply agreement where THC will provide exclusive access to THC's medicinal cannabis for use in honey products by Meluka Health in its Meluka Honey products (the Cannabis Off-Take Agreement)
- Lease agreements to secure part of Jenbrook's Northern NSW property for the growing of medicinal cannabis (the Lease Agreement); and
- Tea tree supply agreement where THC will have access to Meluka's extract products for use in development of new medicinal cannabis products (the Tea Tree Extract Agreement).
Relevant licence applications have been agreed by THC and are being lodged on an expedited basis.
THC Chief Executive Officer, Ken Charteris commented:
"Securing both an additional medicinal cannabis growing site and an off-take agreement further advances THC's path to near term revenue generation from its medicinal cannabis business and complements our acquisition of an industry leading pharmaceuticals manufacturing facility.
"With both a significant growing and manufacturing capability in place, THC is even more attractive to global commercial partners who see THC as being one of the most advanced in the industry".
Note: Assessment based on key peers (CAN, AC8) comparison matrix
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.
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