THC Global has hit another major milestone with the completion of its first round of cannabis processing, validating its "farm-to-pharma" model.
THC Global Group Limited (ASX:THC) hit another major milestone today, after the company's Southport Manufacturing Facility—which is the largest extraction facility in the Southern Hemisphere—completed its first "farm-to-pharma" processing of Medicinal Cannabis.
This is great news for investors, as the official commencement of production activities means that the company can now also begin accepting cannabis biomass from any licensed cultivator in Australia.
Once fully operational, the Southport Facility is expected to have an annual processing capacity of 120,000kg of cannabis, which will give THC the flexibility to focus on large scale extraction activities or expanding its farm-to-pharma operations. The facility is also capable of producing Therapeutic Goods Administration (TGA) certified pharmaceutical Good Manufacturing Practice (GMP) finished product, enabling it to supply patients in the Australian and global export market.
More importantly, the success of this initial round of cannabis processing provides validation for THC's vertically integrated business model, paving the way for the company to scale up its extraction and cultivation efforts in 2020.
The initial supply of medicinal cannabis processed by the facility has already been earmarked for use in the local Australian market, while product exported for the global market will be sold under the Canndeo brand name.
The first production processed by the Southport Facility made use of THC Global's proprietary Australian high-CBD cannabis strain and was grown at the company's Bundaberg cultivation site.
THC will initially be launching with a Schedule 4 CBD oral liquid medicine, which will subsequently be followed by additional CBD-THC formulated products later in 2020 financial year.
According to the CEO of THC Global, Ken Charteris, the company intends to leverage its extraction and cultivation facilities to become a global exporter of medicinal cannabis.
"THC Global has ready-to-go production assets within Australia capable of servicing over 250,000 patients in addition to the global export market, making THC Global a leader in the Australian medicinal cannabis industry, and in prime position to be a global exporter of Australian medicinal cannabis medicines," Charteris said.
"THC Global's medicinal cannabis team have achieved a major milestone today both for the company and for the Australian medicinal cannabis industry by producing our first farm-to- pharma processing of Australian medicinal cannabis at our Southport Facility, in advance of our commercial scale launch next year."
The company is now well positioned to benefit from the growing market for medicinal cannabis—both in Australia and globally—thanks to its "world-class" cultivation and extraction facilities.
To learn more about THC Global visit their Company HQ here.
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