The Australian government legalised the medicinal use of marijuana last year. But they’re certainly not making it easy for companies to provide the product.
If liquor stores and gambling venues thought they had a lot of red tape to cut through, they need to chat with ASX-listed medical cannabis company THC Global.
THC Global is facing ‘extraordinary delays’ receiving it manufacturing permits for two facilities in Queensland, according to their chairman Steven Xu.
However, chief executive Ken Charteris’ recent contacts with the Office of Drug Control has been ‘highly positive’, Xu stated.
It is now expected, by the company, that the licences will be approved in the near future, Xu told shareholders at its AGM in Sydney on Tuesday, AAP reports.
Approval expected this year
The licences are for its pharmaceutical plant extraction and refinement plant in Southport, Queensland that they purchased in 2018 from LEO Pharma. As well as its research and development site in Southeast Queensland.
‘Receipt of these manufacturing licences will complete the THC Global’s vertical integration strategy — allowing for true “Farm to Pharma” cannabis production by THC Global within Australia,’ Mr Xu said.
Currently, one of the permits is with a representative of the Health Ministry for review, and it is expected that the second one will soon be in the final reviews stages, according to Xu.
THC Global goes global
THC Global is holding out for a licence this year that will allow the 60,000 square metres of lands it’s leased in Northern NSW for cannabis cultivations. The can also expand the lease up to 150,000 square metres.
The company has a permit for cannabis R&D at its Southport site. It has been researching high CBD strains of cannabis. It is also looking at extracting non-cannabis material, including tea tress for a partner company, AAP reports.
The company has an export permit and is planning to serve both domestic and international medical cannabis markets once it receives the required manufacturing licences.
THC Global has entered the Canadian cannabis market by cultivating the plant in Nova Scotia through a subsidiary. It is also growing its hydroponics equipment business in Vancouver, Xu said.
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