Medicinal cannabis producer THC Global (ASX: THC) is to begin production at its Southport manufacturing facility following the issue of permits from Australia’s Office of Drug Control (ODC).
CEO Ken Charteris revealed in a statement this morning the issue of permits covering production from licensed and permitted medicinal cannabis growers, including from the Company’s own cultivation facilities.
The company is now fielding enquiries from Australian licensed and permitted cultivators hoping to supply the new plant.
Charteris said: “The issue of a Manufacture Permit by the ODC allows THC Global to produce local medicinal cannabis from Australian production, dramatically reducing costs to Australian patients currently reliant on high priced imports.
“This is a milestone, not only for THC Global but for the Australian medicinal cannabis industry as a whole.
“THC Global is now able to operate the largest pharmaceutical bio-floral extraction facility in the Southern Hemisphere.”
With up to 20 cannabis stocks listed on the ASX still without permits, their share prices languishing, THC Global appears to have stolen a march on competitors.
Cann Group (ASX:CAN) is one awaiting ODC permits and has seen its share price slump 49 per cent in FY20.
THC Global has the capacity to supply 250,000 users and expects its first commercial product to be available early in 2020.
Charteris said: “Our scale and technology will enable us to offer patients a higher quality, more consistent cannabis medicine at a significantly lower cost than the current imported products available to Australian patients.”
Picture: THC Global/Southport
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