The THC Global Group Ltd (ASX: THC) share price has returned from its trading halt and surged higher.
At the time of writing the cannabis company’s shares are up 11% to 41 cents.
Why were THC Global’s shares in a trading halt?
THC Global requested the trading halt whilst it prepared an update on production at its Southport Manufacturing Facility.
It has now released that update and revealed that it has completed the first farm-to-pharma processing of medicinal cannabis at the facility.
The Southport Facility is the largest pharmaceutical bio-floral extraction facility in the southern hemisphere and is licensed and permitted to process medicinal cannabis.
Management believes the first production of medicinal cannabis by the company is a significant milestone for both it and the Australian medicinal cannabis industry. It signifies the commencement of its production activities and will now be able to offer large scale medicinal cannabis production.
It also feels this validates its farm-to-pharma operation capability, which it believes lays the path for the company to scale up its cultivation and extraction activities through 2020.
THC Global’s chief executive officer, Ken 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 medicinal cannabis at our Southport Facility, in advance of our commercial scale launch next year.”
“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,” he added.
It isn’t just THC Global making an announcement today. This morning Zelira Therapeutics Ltd (ASX: ZLD), formerly known as Zelda Therapeutics, announced that it will bring its HOPE Franchise to the state of Louisiana with a licensing agreement.
This agreement is expected to generate immediate revenue through a licensing arrangement which includes an up-front fee and ongoing royalties.
The post THC Global share price surges 11% higher on cannabis production update appeared first on Motley Fool Australia.
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