THC Global and Cannatrek have signed a 12-month supply and manufacturing agreement in a deal they dubbed “a significant milestone for the Australian medicinal cannabis industry”.
The arrangement leverages Cannatrek’s cultivation expertise and THC’s pharmaceutical production capability with the first supply of dried cannabis flower from Cannatrek expected in Q3 2020 and Cannatrek-branded medicines to be released by THC in Q4 following production and validation.
In a separate agreement with Tetra Health, THC’s recently acquired clinic network, Cannatrek’s medicines will be made available for prescription and supply via Tetra’s 600 prescribing physicians.
The deal takes advantage of THC’s Southport pharmaceutical production facility, while Cannatrek is adding to its growing facilities outside Brisbane with a new site in Shepparton, Victoria granted Major Project Status by the Australian Government as a new greenfield development.
THC Global CEO Ken Charteris said: “This is a significant milestone for THC Global and Cannatrek, but also for the Australian medicinal cannabis industry. By utilising our Southport facility to produce high-quality cannabis medicines for Cannatrek’s brand as well as our Canndeo brand, we’re increasing the number of Australian-produced medicines available to patients and supporting the development of the industry as a whole.”
He added THC would welcome partnerships with other cultivators.
Cannatrek CEO Tommy Huppert said: “The Australian medicinal cannabis industry is maturing rapidly in 2020 and the THC Global-Cannatrek production agreement provides excellent opportunities for deploying both agronomic and manufacturing excellence in the supply chain. More importantly, it will allow patients access to 100% Australian-made medicinal cannabis for therapeutic purposes at a more affordable price.”
UPDATE: THC Global went into a trading halt on the ASX on Tuesday (June 16, 2020) as it entered a capital raising to fund an upgrade of its Southport manufacturing facility and commercial trials of cannabinoid pharmaceuticals.
The halt will stay in place until trading starts on Monday, unless there is an earlier announcement.
The company hopes to raise $6 million at a discounted 30¢ per share (shares last traded at 38¢). Bidding closes at 10am on Friday.