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The Hydroponics Company secures lease for cannabis growing site and off-take

Published: 02:50 24 Jul 2018 BST

two hands holding pens signing a paper
Shares in the company last traded at 60.5 cents

The Hydroponics Company Ltd (ASX:THC) has satisfied conditions precedent for the lease of a northern New South Wales property to grow strains of medicinal cannabis.

The growing site is to be established as the primary cannabis source for the company’s large-scale manufacturing facility in southern Queensland.

The land lease was one of three secured agreements that also included off-take and supply agreements with Meluka Health.

READ: The Hydroponics Company recognises value in manufacturing facility

THC’s chief executive officer Ken Charteris said: “Securing both an additional medicinal cannabis growing site and an off-take agreement further advances THC’s path to near term revenue generation from its medicinal cannabis business and complements our acquisition of an industry leading pharmaceuticals manufacturing facility.

“With both a significant growing and manufacturing capability in place, THC is even more attractive to global commercial partners who see THC as being one of the most advanced in the industry.”

The off-take agreement will see THC provide exclusive access to its medicinal cannabis for use in Meluka’s honey products.

The supply agreement provides THC with access to Meluka’s tea tree extracts for use in any future development of new medicinal cannabis products.

READ: The Hydroponics Company new directors buy shares on market

Earlier this month, THC received a vote of confidence from two recently appointed board members, who had both recently purchased shares on market.

Lou Cattelan and Gary Radcliff were voted in by shareholders as directors of the board at an extraordinary general meeting (EGM) in March 2018.

Cattelan purchased $51,323 worth of shares at an average price of 58 cents through on-market trades and Radcliff purchased $23,369 worth of shares.

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