Canadian Cannabis Growing Facility Binding Agreement Signed
Sydney, Nov 16, 2018 AEST (ABN Newswire) - THC Global Group Limited (THC Global or the Company) (
ASX:THC) (HDRPF:OTCMKTS) advises that its wholly owned subsidiary, Vertical Canna Inc has entered into a binding agreement to conduct due diligence for the acquisition of a Canadian company which is in final stages of becoming a Licenced Producer of Cannabis.
Key Points:
- THC Global's wholly owned subsidiary, Vertical Canna Inc has signed a binding due diligence agreement for the build out of a Canadian licenced cannabis producer
- Acquisition remains subject to due diligence and finalisation of terms
- On acquisition, and subject to finalisation of licencing, THC Global will own a full-scale cannabis growing facility in Canada in addition to its Australian facilities
- Targeting the Canadian medicinal and recreational cannabis markets with direct sales
On acquisition, THC Global will complete the build out of a full-scale cannabis growing facility which will be able to offer direct retail sales in addition to supporting other commercial sales. THC Global is also in negotiations to engage specialist personnel in the Cannabis sector to support this build out.
THC Global's objective is for Vertical Canna to pursue a build out of a vertically integrated cannabis business across North America through strategic acquisitions and partnerships with a focus on short paths to profitability with strong potential for value development. In parallel to this strategy, Vertical Canna is currently developing a new retail cannabis and equipment brand which will soon be available across stores in Canada.
The pursuit of a stronger presence in Canada is in response to positive feedback received from the Canadian capital markets and the broader cannabis sector towards THC Global as a high-growth cannabis business with the capacity to produce large quantities of pharma-grade product in the near term.
Chief Executive Officer, Ken Charteris, commented:
"THC Global is looking at entering new international markets to further cement its presence as a full-scale global cannabis producer. Canada is a logical next step in the Company's global expansion plans given our existing Canadian presence with Crystal Mountain Products. Our focus in identifying new global opportunities will be to seek acquisition assets and strategic partnerships that lead to near term revenue generation.
"Further, the opportunity to enter the retail sector in Canada in the coming months is very attractive and will offer deep synergies with our Crystal Mountain Products business and may lead to future supply opportunities from our existing Australian production facilities."
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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