THC Global Group Limited is an ASX-listed medicinal cannabis producer with a vertically integrated business model—find out why they're primed for success in 2020.
THC Global (ASX:THC) is an ASX-listed pot stock, headed by CEO Ken Charteris, which we believe is positioned to skyrocket in the coming months. There are several key factors that have cemented THC as one of the better ASX-listed pot stocks, and at its current standing of 32c a share, there's no better time to purchase THC Global stocks.
Let us outline some of the reasons we think THC is going to make splashes in 2020.
1. The Southport Facility
The Southport Facility is the largest extraction facility in the Southern Hemisphere, estimated to be capable of producing an annual processing capacity of 120,000kg of cannabis. In total, it's estimated that the facility has the capacity to support more than 250,000 Australian patients, while also maintaining enough additional supply to begin exportation into the global cannabis market.
Once the extraction and isolation process is complete, the company will then process these formulations into finished medicinal products, including oils, tinctures, and capsules.
While the facility is a behemoth, THC was able to scoop it up at a fraction of the cost, when it acquired the facility from its' original owners, Leo Pharma, who were left with a redundant asset following a Phase 3 drug trial failure. This allowed THC to pick up the facility—which has an insurance value of $35 million—for a very modest $2.55 million.
The large scale, pharmaceutical-grade manufacturing facility, is built to European GMP standards, meaning exports to the European Union, in particular, will be easily achieved. This is especially prudent given the increasing demand for value-added cannabis products such as extracts and edibles across the globe.
The facility is loaded with machinery and systems that have been designed to produce high-quality active pharmaceutical ingredient (API) and isolated cannabinoids that are distilled into an end product. Additionally, it can also process the whole plant for full-spectrum isolates that create the entourage effect.
This facility alone sets THC Global above the rest in manufacturing capacity and will give the company a massive leg-up over competitors in the coming months.
2. Vertically Integrated
THC Global operates a "Farm to Pharma" Model, meaning the company is decked out with all the facilities, and licenses, to produce high-quality cannabis products from start to finish.
The company's Southport Facility now possesses all federal and state licenses and permits needed to enable commercial-scale pharmaceutical GMP manufacture of medicinal cannabis extracts from the Southport Facility.
This full-gamut of permits and licenses allows THC Global to export its products into Europe and North America, on top of supplying patients in Australia and New Zealand.
And if the Southport Facility wasn't enough, THC has several operations throughout Australia, one of which is its Bundaberg Facility.
The Bundaberg Facility is fully licensed by the ODC for Cultivation and Research & Development, holding the full suite of cannabis licenses under the Australian medicinal cannabis regulatory scheme, including a Cannabis Research Licence, a Medicinal Cannabis (Cultivation) Licence, and a Manufacture Licence, allowing for farm-to-pharma production at the site.
This full-spectrum of licenses will also allow the company to utilise on-site analytical lab equipment, which will significantly reduce the cost of product research and development and strengthen its quality and safety assurance capabilities. This is extremely important, as the THC stock is currently pursuing GMP certification for its medicinal products.
For all of these reasons, the company's CEO, Ken Charteris, says that THC's products will be: "a higher quality, more consistent cannabis medicine at a significantly lower cost than the currently imported products available to Australian patients."
3. The Show Is Just About to Begin
If you like the fact that THC has cost-effective, GMP-certified, full-spectrum cannabis extracts ready to go, as well as the necessary licenses to export these products globally, then you'll want to keep your eyes on THC Global in 2020 – as this is the year THC is set to kick-off.
2020 is the year THC's 'Canndeo' branded medicinal cannabis medicines are expected to be completed and supplied to Australian patients. The company's management has also confirmed that they expect to see a "strong increase in patient numbers" over the next 12 months, as THC launches head-first into commercial-scale production activities.
THC's medicinal cannabis product timeline estimates that the company will complete its listing on the ARTG – the Australian Register of Therapeutic Goods – in April this year, which will allow for the export of it's finished products to the global market, targetting Europe, Canada, Australia and New Zealand.
Additionally, because these upcoming products are GMP-certified, THC's products will sit far higher up on the value chain than companies simply producing raw flower, meaning the profits will be far higher too.
With zero debt across the company, an estimated $7 million in revenue through the company's hydroponics business Crystal Mountain, and the commencement and upscaling of operations both in Australia and abroad, 2020 is the year of THC Global.
To learn more about them, visit their company HQ here.
This could be one of the best investing opportunities of 2020
Legislative changes are blowing through the US, and with it, an ever-increasing number of states legalising cannabis for recreational use.
With the success seen in Illinois, which legalised for adult-use on January 1 and saw products moving off the shelf at an unprecedented rate, this company is primed to take advantage of the booming US recreational market.
They have secured partnerships with the biggest cannabis companies in the US, and their portfolio is second to none.
And with the sector-wide pullback of 2019, this company is now at a bargain-basement price.
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