The Hydroponics Company Ltd’s (ASX:THC) chairman, Steven Xu and acting chief executive officer, Ken Charteris have returned from Canada where they reviewed the operations of THC subsidiaries.
Their objective was to identify the support required by THC subsidiary Crystal Mountain Products to be ready for the implementation of the Canadian Cannabis Act to legalise the use of recreational cannabis.
READ: The Hydroponics Company welcomes Canadian bill to legalise recreational cannabis
THC chairman Steven Xu said: “We see the implementation of the bill in Canada and the possible acceptance of state legislation in the USA to provide a blueprint for the future adoption of legal cannabis in Australia.
“The more we understand the changing landscape the better prepared THC will be for these changes.”
Importantly, the letter of intent with Ascent Industries Corp was negotiated during the Canadian visit and discussions continue regarding the proposed Canadian Hydroponics company acquisition.
READ: The Hydroponics Company to exchange cannabis strains with Canada’s Ascent Industries
The relationship with Ascent provides THC with access to additional cannabis strains, offtake for THC pharmaceutical grade medical cannabis and considerable information of on the medicinal cannabis market in North America.
Xu added: “There are obvious synergies for THC. THC is positioning itself to be able to capitalise on its existing Canadian business and expand its operations throughout North America.
“We look forward to developing relationships and expanding our hydroponics operations into the USA.”
THC, through its wholly owned subsidiary Crystal Mountain Products, is settling an exclusive supply agreement into Europe.