Half Yearly Report
Sydney, Aug 30, 2018 AEST (ABN Newswire) - Your directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of The Hydroponics Company Limited (
ASX:THC) (HDRPF:OTCMKTS) (referred to hereafter as the 'Company') and the entities it controlled at the end of, or during, the half-year ended 30 June 2018.
Review of Operations
Establishment of Executive and Management Leadership Teams
THC announced the appointment of Ken Charteris as the Group Chief Executive Officer on 11 July 2018 in addition to a number of other key strategic appointments over the past half year across both its global medicinal cannabis operations and its North American hydroponics business.
Group CEO, Ken Charteris, an experienced bio-tech and pharmaceuticals executive is supported by a global team who each have significant experience working with working in the pharmaceuticals and hydroponics industries.
The Medicinal Cannabis leadership team is headed up by Dr Andrew Beehag and includes Katy Williams-Day as Product & Regulatory Affairs Manager, John Hall as an expert in Cannabis Strain Development and R&D, and Dr Michael Harrison as manager of the Southport bio-pharmaceutical facility.
The Company also secured the continued services of Mr Jason Colquhoun, who is the head of the Company's revenue generating global hydroponics division. Jason is overseeing the expansion of the Company's hydroponics operations as it seeks to take advantage of the burgeoning micro-LP and home-grower markets in Canada following recent legislative changes and expands into the greater North American and European markets.
Manufacture, Product Development and Distribution of Hydroponic Equipment
The Company remains committed to the continued expansion of the Company's global revenue-generating hydroponics operation, Crystal Mountain Products. The Company has recently entered into an agreement with BioFloral, an east coast Canadian hydroponics business who will together work toward building a distribution network for the Company's products across North America.
Increased Medicinal Cannabis Growing and R&D Capabilities
The Company also expanded its growing capability significantly in the period, having secured an additional growing site in Northern NSW which it expects to develop to be able to cultivate up to 600,000 plants per year.
The large-scale capacity will allow the Company to grow plants using both its proprietary strain IP and imported strains from commercial partners attracted in the first half of 2018.
The Company continues to be engaged with the relevant Australian Government authorities to pursue the Company's licencing and permitting program for its medicinal cannabis operations.
Pharma-grade Bio-manufacturing facility enabling full sale pharma production
The Company acquired a bio-pharmaceutical manufacturing facility on 1 May 2018 for $2.55 million. Following a revaluation of the facility by AON Valuation Services, the asset now sits on the Company's balance sheet at over $16 million. The acquisition secures an industry-leading asset for the Company allowing it to move towards the sale and export of locally produced medicinal cannabis products. The acquisition places the Company far ahead of other medicinal cannabis companies who lack any significant means of moving to full-scale commercial pharma-grade production of medicinal cannabis products in the near term.
To view the full report, please visit:
http://abnnewswire.net/lnk/BH3A66S3
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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