Hydroponics Company Ltd (ASX:THC) has negotiated a warehouse lease providing it with the capacity to increase its range of products for the Canadian medicinal cannabis market.
This development has occurred as Crystal Mountain, the company’s Canadian business, closed the year generating revenues of $1.8 million during the seven month period of ownership.
With The Hydroponics Company positioning Crystal Mountain for expansion in 2018 additional warehousing will be strategically beneficial.
Canada expansion to assist in geographic diversification
Expansion in Canada is vital to the company’s goal of developing a cannabis business that is geographically diversified.
Another key feature of the group’s business model is to establish a vertically integrated business that controls the supply chain from development through to distribution
Management changes at Crystal Mountain
Jay Colquhoun, who transitioned Crystal Mountain from a privately owned business to its current position will be stepping down from that role has decided to depart the business.
While a new chief executive is yet to be appointed The Hydroponics Company is likely to move fairly quickly given the pending ramp-up of Crystal Mountain’s operations.
New South Wales government provides industry support
In a separate development, the New South Wales government has provided a commitment to streamline the approval process for doctors and patients to access medicinal cannabis treatment.
Instead of both the Commonwealth and NSW Health overseeing the approvals, NSW will rely on a single clinical assessment by the Therapeutic Goods Administration (TGA).
Streamlining of approval system
A single approval process effectively streamlines the application process to the extent that doctors prescribing cannabis medicines would typically get approval within 36 hours.
The arrangement which will start in the coming weeks removes barriers and ends a duplication of regulatory requirements.
This announcement follows THC’s recent approval by the Office of Drug Control to commence importing high-quality medicinal cannabis products.
READ: The Hydroponics Company granted approval to import medicinal cannabis products
This will be facilitated under its distribution agreement with European supplier Endoca.