Cannabis Strains Exchange with Canadian Licensed Producer Key Points:
• Exchange of cannabis strains with Canadian LP, Ascent Industries Corp. to expand THC’s plant catalogue
• THC to supply pharmaceutical grade CBD product via Offtake Agreement to Ascent
• THC and Ascent to collaborate on development of CBD and THC based medicines
• Information exchange on medicinal cannabis market in Canada, Australia and other markets including cannabis extracts and their medicinal application
• Ascent is a leading licensed producer in Canada that was recently selected by Aurora Cannabis Inc to supply its unique cannabis strains The Hydroponics Company Limited (“THC” or “the Company”) is pleased to advise THC Pharma Pty Ltd, a wholly owned subsidiary of THC, has concluded a Letter of Intent (LOI) with Ascent Industries Corp (Ascent). The LOI outlines the scope of cooperation between THC and Ascent through which the companies will share both cannabis product and knowledge to collaboratively grow their respective businesses. Both THC and Ascent have proprietary strains of Cannabis sativa and will provide these strains to each other on a royalty free basis. This arrangement will provide THC with access to additional unique cannabis strains, which THC can grow, cultivate and utilise in its manufacture of medicinal cannabis at its Southport GMP certified facility in Queensland. Organic growing will be possible at the organic certified land in northern New South Wales that THC proposes to lease (ASX: 3 May 2018). The companies have agreed to negotiate an offtake agreement for THC to supply Ascent with medicinal cannabis products that it will produce at its biomanufacturing facility at Southport. The facility, formerly owned by international pharmaceutical company LEO Pharma, is one of the largest pharmaceutical botanicals extraction and refinement plants in the Southern Hemisphere (ASX: 26 April 2018). The LOI also provides for collaboration in the development of CBD and THC based medicines and general knowledge exchange. Progression through to final agreements by THC and Ascent is subject to a number of conditions precedent including: generating financial return from any agreed joint development activities; successful due diligence by both parties; and agreement on terms. Whilst the LOI is non-binding it sets the framework and understandings for each party to progress to full form agreements.
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