Just a bit of info on THC was on the internet today = 9 July 2020, Written by Matt Ogg and David Simmons
Head office: Sydney Official listing date: 4 March 2017 2019 position: 10 Market Cap: $47.9m
By virtue of creating a vertically integrated supply chain over the last year, the aptly named THC Global (ASX: THC) has rapidly risen up the ranks of the Top Cannabis Companies list in 2020.
Over the last three years THC has made a name for itself as one of the fastest-moving suppliers of medicinal cannabis in Australia. From growing to manufacturing to distribution, THC is in the driver's seat.
A new manufacturing facility in Southport, a production centre Bundaberg and the acquisition of national cannabis clinic network Tetra Health are all part of THC's canabidiol crusade.
It has now been almost a year since THC received a manufacture licence for cannabis at the Southport Facility, dubbed the 'largest bio-pharma extraction facility in the Southern Hemisphere'. With the centre is now up and running THC is able to produce its own product.
Of course, a manufacturing and development facility is only going to be useful if you have a steady supply of raw materials coming in. Naturally, THC had a solution for that problem.
In September 2019 the company announced it has secured a lease over a prime site for cannabis production in Bundaberg, Queensland.
The site includes 6.6 hectares of existing hydroponic greenhouses plus an additional 180,000 sqm of agricultural land suitable for open-field cannabis or hemp cultivation.
With the foundations for its own supply chain in place and a product in development, THC had just one last hurdle to overcome: getting the medicine to those who need it.
This was solved in May 2020 when THC announced it had acquired cannabis clinic network Tetra Health for $3 million.
That deal was completed on 1 June 2020, and has given THC access to Tetra's network of medical practitioners, comprising more than 600 referring physicians, 30 prescribing physicians and a national network of dispensing pharmacies.
This gives THC access to a list of 10,000 prospective patients, all interested in the medicinal benefits of the cannabis plant.
By June 2020 THC has already witnessed an increase in patient enquiries of 30 per cent.
"Through the acquisition of Tetra, THC is advancing the industry across the chain, enabling the Company to increase accessibility and reduce costs of medicinal cannabis medicines to Australian patients, by cutting out intermediary markups and handling costs," THC said.
The acquisition of Tetra came at the right moment for THC; just over a week before it was completed the company announced that its first Australian-produced medicinal cannabis product was available for prescription to patients under the Special Access Scheme.
Released under THC's Canndeo brand, the product is a full-spectrum cannabidiol medicine and is distributed via Tetra's network of physicians.
Everything seems to be falling into place for THC. As its supply chain was coming together the company continued to work with other global cannabis leaders from around the world on importing and distributing the drug in Australia.
Of particular note is its recently struck supply deal with MGC Pharma (ASX: MCX), another company on this list.
The agreement saw MGC Pharma provides THC Global with a source of medicinal cannabis products to be packaged and made available to Australian patients under THC's Canndeo brand.
The deal also saw the two ASX-listed companies agree to collaborate in the future to supply those that need medicinal cannabis with the product, including products from THC's Southport Facility.
More recently THC linked up with a leading grower of medicinal cannabis to develop and manufacture Cannatrek-branded products from its Southport facility.
In return for the extraction and manufacturing, Cannatrek will deliver THC an equal quantity of dried cannabis flower for THC to use in its own medicines.
THC's Tetra Health will also make Cannatrek medicine available for prescription and supply via its network of prescribing physicians.
The Southport facility has also come in handy as THC enters the white-labelling business. In late June the group announced a partnership with New Zealand-based Medleaf Therapeutics that will see THC to produce and supply white-labelled medicines.
Looking good...
THC Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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