Corporate Update - January 2019
Sydney, Jan 31, 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 activities as it transitions into full-scale domestic operations having secured almost all licencing and permitting required for its vertically integrated, Farm to Pharma business model.
Key Points:
- THC Global to transition to full-scale domestic operations upon finalisation of licencing and permitting
- Commenced cultivation following permitting for research and product validation at THC Global's manufacturing and cultivation site in Queensland
- Appointment of new CFO - specialist in cross border and high-growth strategies
- Acquisition of Nova Scotia cultivation site to complete imminently with appointments of experienced management team for Vertical Canna Inc
- Expansion into New Zealand in December to be followed by strategic positions in the Asian markets - product export and medical engagement
- Hydroponics equipment distribution agreements for its proprietary trademarked products into the European Union secured with commencement in Q1 2019
- Patient enquiries received for epilepsy, autism, pain (neurological and chronic)
- Strong balance sheet - unaudited net equity $28.3 million
The Company has commenced cultivation activities having received permits for the cultivation and R&D site owned by THC Global subsidiary Canndeo. A Manufacturing licence for this site is expected shortly which will allow product validation and study trial production additionally to the full-scale manufacturing that THC Pharma will undertake at its other manufacturing facility.
In addition to the expansion into New Zealand in December, where THC Global is providing imported CBD products to patients in New Zealand under exclusive distribution agreements, THC Global is also exploring strategic opportunities to the broader Asian region. The Company expects to announce further details of these negotiations and early-stage partnerships as they develop towards commercial outcomes in the coming months.
The Company's expansion into Canada with its wholly owned subsidiary Vertical Canna Inc has also been successful - with Vertical Canna focussing on acquiring assets with short revenue generation runways such as the Nova Scotia cultivation site, which is being positioned to not only be a cultivation site but also allow for retail and wholesale cannabis supply. The site is fully scalable, with the Company to expand growing capacity as it secures off-take agreements to underpin revenue targets.
In order to support the Company's expanded activities globally, the Company appointed Mark Fortugno as Group Chief Financial Officer. Mark's expertise will support the Company's cross border acquisition activities and progression into full-scale production.
The Company's balance sheet is stronger than ever, with an unaudited net equity of $28.3 million expected to be reported in the 2018 Annual Report to be released in the coming months.
THC Global's hydroponics equipment division, Crystal Mountain, expects to grow significantly as the Company enters the retail market to supply to micro-cultivators and other new markets. The Crystal Mountain CEO, Jason Colquhoun has secured a number of new distribution agreements which will see distribution of Crystal Mountain's trademarked products such as Spinpro to be distributed across the European Union commencing Q1 2019.
Revenue generation from the sale of imported cannabis products under the exclusive Endoca distribution agreement for Australia and New Zealand will also be more prominent in upcoming quarters as the Company continues prescriber, pharmacy, and patient engagement programs for the products sold by THC Pharma and THC Pharma (NZ). Patient enquiries have been primarily for epilepsy, autism, neurological pain and chronic pain.
Chief Executive Officer, Ken Charteris commented:
"Q4 2018 has been a pivotal quarter for the Company focussing on developing a vertically integrated global cannabis business and marking the Company's transition into production mode as its domestic facilities receive final licencing and permitting required.
"We are pleased to see first plants on site at our manufacturing and cultivation site, and look forward to commencing the first stage of our manufacturing activities to support the domestic market with a view to our larger facility being used to pursue export opportunities."
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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