The Hydroponics Company Ltd’s (ASX:THC) shares are trading circa 12% higher intra-day at $1.04 following the federal government’s decision to allow medicinal cannabis to be exported from Australia.
David Radford, chief executive officer, said: “this federal government initiative supports the growth and further investment in Australian medicinal cannabis companies.
“THC is uniquely placed to both develop the international opportunities that will now open up through our international partnerships, as well as accelerate the Australian uptake of medicinal cannabis through our National Access Cannabis clinics that we plan to establish, commencing in early 2018.”
New Initiative to support the local medicinal cannabis industry
The federal government has approved the exportation of medicinal cannabis in a bid to strengthen the supply of medicinal cannabis amid growing demand domestically and worldwide.
This initiative is expected to foster the development of the local medicinal cannabis industry and lead to further investments within the medicinal cannabis market in Australia.
Pilot growing program in the first half of 2018
The Hydroponics Company is on track for a pilot cannabis growing program targeted for the first half of 2018, subject to government licencing.
Importantly, the build out of the company’s growing facility in Queensland is well advanced.
READ: The Hydroponics Company’s shares surge after signing medicinal cannabis deal
The company is on track to import the first medicinal cannabis product range from Endoca early in 2018.
Endoca is one of Europe’s most highly respected suppliers of certified medicinal cannabis, with sales exceeding €50 million per annum.
The Hydroponics Company is aiming to provide access to legal medicinal cannabis for eligible medical practitioners commencing with an initial selection of Endoca CBD products (3% CBD oil, 15% CBD oil).
READ: The Hydroponics Company raises $8 million to fast-track development of medicinal cannabis in Australia
The company recently raised $8 million via a placement to sophisticated and institutional investors at $0.63 per share.
Medicinal cannabis clinics program to commence in 2018
Early in 2018, the company will commence recruitment of staff for the expansion of the National Access Cannabis (NAC) clinic model.
The clinics will provide professional education and training for referring physicians and patients, and, in parallel collect meaningful patient data to support further advancement of the programs.