THC Global Group Ltd (ASX:THC) will boost production at its Southport facility as it makes inroads with cannabis sales, having secured its first sales of white-labelled medicines in New Zealand and prepares to ship its first bottles to Canada.
The company is also expecting to ship out its cannabis oil to Europe in the fourth quarter while there has been a rapid uptake of Canndeo medicines since the launch in May with patients across Australia.
This increasing demand and production scale-up at the Southport facility will result in the company securing additional cannabis plant material from the international markets.
First-order from New Zealand
The first order from Medleaf Therapeutics in New Zealand has been received with an initial supply of 2,250 bottles at $260,000, to be delivered on October 1, 2020.
This order is expected to support up to 800 patients in New Zealand on an ongoing basis.
THC Global is competitively positioned in the New Zealand market due to the requirement from October 2020 for the supply of all future medicines into the country, including future locally sourced medicines, to meet stringent registration requirements.
These include the provision of a six-month expiry date on medicines, which will be a significant time barrier on new market entrants based in New Zealand.
First supply to Europe in Q4
The company is expecting its first purchased supply into Europe in the fourth quarter this year.
It is completing verification of Good Agricultural and Collecting Practice (GACP) supply for its external suppliers, which is a mandatory requirement for export into Europe.
THC Globals manufacturing facility is Good Manufacturing Practices (GMP) licensed by the Therapeutic Goods Administration in Australia and has reciprocal recognition across Europe in meeting EU-GMP requirements.
Move to Canada
Leveraging on receiving Health Canada licensing for Class I, II, III devices and Natural Health Products, it is now competitively positioned for the direct supply of its cannabis medicines into Canada.
It anticipates an initial shipment of 3,000 bottles of medicinal cannabis in the current quarter, establishing a high-quality and cost-effective medicine supply into Canadas established market of more than 350,000 registered patients.
Boosting GMP manufacturing facility
As a result of the significant increase in demand, both domestically and internationally, THC Global is accelerating the expansion of production activity at its GMP manufacturing facility.
To support this, it has secured additional crude cannabis extract supply from southern Africa, in addition to the existing crude extract supply from Canada and dried cannabis flower from Australian cultivators and the companys own cultivation facilities.
This robust supply chain, combined with cost-effective supply allows production to pivot rapidly towards in-demand Canndeo medicines and white-labelled production, aimed at better meeting patient needs, ensuring continuous supply, and continued positive revenue growth.
Rescheduling of CBD medicines in Australia
The company is also preparing for the rescheduling of CBD medicines expected in the first quarter of 2021 and is readying products for the required specific Schedule 3 registration thRead More – Source