The THC Global (ASX: THC) share price has jumped 1.5 cents or 5% higher to 31.5 cents in early Thursday trading after the medicinal cannabis company announced a rapid uptake of Canndeo medicines since launch in May.
In an announcement to the ASX, THC Global said Canndeo medicines, launched in May 2020, have been in high demand from patients and prescribers looking for a more affordable medicine compared to current full spectrum medicines available in Australia.
Additionally, THC Global said it has received significant enquiries with respect to white-labelled production of pharmaceutical GMP cannabis medicines. It said the first order from Medleaf Therapeutics in New Zealand has now been received with an initial supply of 2,250 bottles at A$260,000 expected to be delivered on 1 October 2020.
THC Global also said it was expecting its first export to Canada, anticipating an initial shipment of 3,000 bottles of medicinal cannabis in the 3rd quarter of 2020.
THC Global said it is simultaneously securing first firm purchase orders into Europe for cannabis oil, anticipating its first purchased supply into the continent in the 4th quarter of 2020.
As a result of this significant increase in demand, both domestically and internationally, THC Global said it is accelerating the expansion of production activity at its Australian pharma GMP manufacturing facility.
THC Global is the first ASX listed entity to fully own and operate end to end commercial medicinal cannabis production facilities under Australia’s cannabis regulations. THC Global’s Southport Facility in Southport, Australia is one of the largest pharmaceutical GMP cannabis manufacturing facilities in the world.
THC Global also owns and operates a fast growing turnkey cultivation solutions provider, including a hydroponics equipment and supplies wholesaler and retailer servicing the rapidly expanding cannabis sectors in North America and Europe.
Formerly known as The Hydroponics Company, THC Global recently raised $6.6m in fresh capital to purchase equipment for its manufacturing facility as well as for commercial trials of cannabinoid pharmaceuticals.
John Athanasiou of Red Leaf Securities recently said the diversified cannabis pharmaceuticals company has established several revenue sources, making it a leader in the medicinal cannabis space. His firm believes the THC Global share price offers upside value.
With a market capitalisation of around $50m, THC Global shares have fallen 26% over the past 12 months.