The Hydroponics Co Ltd (ASX:THC) has completed stage I of its research and development facility and growing capability in Queensland.
Since October 2017, the company has increased the investment in, and focus upon, the development of the Queensland site.
A premium growing facility that will focus on the production of high-quality medicinal cannabis has been established.
David Radford, chief executive officer, said: “We look forward to being granted the manufacturing licence and final approvals.
“These will allow us to commence the growing and manufacturing program of high-quality medicinal products”.
New site allows for increasing demand
The site has been developed to allow for increasing demand for high-quality medicinal cannabis products in both local and export markets.
Stage I of the development includes greenhouses for indoor cultivation and growth of medicinal cannabis.
It also has a drying and shredding facility for the initial processing of the dried plants, and an extraction laboratory for the processing of crude extract from the shredded plants.
The site will provide an onsite laboratory for the development of new strains, as well as testing and quality control of harvested products.
Vertically integrated business model
The current site, when fully optimized, will be scalable to meet the demands of a growing market.
THC plans to vertically integrate along the industry value chain by producing a high quality, processed product.
This will differentiate The Hydroponics Company from companies focused solely upon the production of medicinal cannabis as an agricultural commodity.
Stage II to focus on processing of raw material
Stage II of the company’s growth plan will focus on the processing of raw material into higher value medicinal cannabis oils for use in Australia and overseas.
These products will be provided to approved Australian patients through the National Access Cannabis (NAC) clinics in Australia as a branded product.
There will also be the opportunity to promote other premium products sourced from the company’s international partners.
Discussions have commenced with NAC Canada to supply high-quality Canndeo products to supplement NAC’s existing product portfolio.
Management is also considering an acquisition in Canada.