In the wake of THC Global (ASX: THC) reporting it has secured its medicinal cannabis manufacturing licence, partner Eve Investments (ASX: EVE) noted the licence now paves the way for the duo to advance existing site lease, tea-tree and cannabis offtake agreements.
Last week, THC reported its wholly-owned subsidiary Canndeo had been granted a medicinal cannabis manufacturing licence from the Australian Office of Drug Control.
The licence completes THC's 'farm to pharma' vertical integration strategy with the company already holding research and cultivation permits.
Via its wholly-owned subsidiaries Jenbrook and Meluka Honey, Eve has agreed to allow THC to grow cannabis at its tea tree plantation site in New South Wales, which is more than 2,000 acres.
At the plantation, Eve produces and sells organic tea tree honey, tea tree oil, and a variety of other tea tree and honey-based products for health and wellness markets.
In return for allowing THC to grow medicinal cannabis at its plantation, Eve will have access to THC's medicinal cannabis for incorporation in its products including Meluka Honey.
Additionally, THC's operations in Australia and Canada, along with its planned expansion into Asia and other regions could offer Eve a platform to distribute its Meluka Honey cannabis and tea tree honey products.
"THC's manufacture licence receipt is a critical milestone in the joint strategy between Eve and THC towards development of medicinal cannabis honey, as well as other potential future activities between the companies," Eve stated.
Meanwhile, Eve is using THC's manufacturing facility to produce melaleuca tea tree extracts enabling the company to fast-track its variety of new tea tree honey-based products to market.
"We are excited to be able to move to the next stage in the research and development of our cannabis honey products via our agreement with THC," Eve investment director Ben Rohr said.
He added THC securing the manufacturing licence was an important milestone for this process.
& Keep Up to Date
Get the latest pot stock recommendations, cannabis news
and industry updates straight to your inbox!