THC Global Group Ltd (ASX:THC) has secured an agreement to lease a property with 66,000 square metres of existing hydroponics greenhouses, and an additional 180,000 square metres of agricultural land for the cultivation of medicinal cannabis in Bundaberg, Queensland.
The new property is in addition to THC’s existing Bundaberg and Northern NSW cannabis cultivation facilities.
In addition to the 66,000 square metres of hydroponic greenhouses on the new property which are able to be easily repurposed for medicinal cannabis cultivation, it has an attached 180,000 square metres of open agricultural land suitable for open-field cannabis or hemp cultivation.
Within the next 14 days, THC will submit a request to the Australian Office of Drug Control (ODC) for the property to be an additional cultivation site under an existing cultivation licence held by THC’s subsidiary Canndeo.
Canndeo currently holds all three cannabis licences in Australia and has primary operations at another facility in Bundaberg, Queensland.
THC expects to be able to produce an initial 80,000 kilograms of dried cannabis flower from hydroponics growing annually at the new property, with the potential to increase this capacity through exploitation of the open-field cultivation area.
Rapid acceleration of production
In additional to medicinal cannabis, THC will explore using part of the open-field land for hemp cultivation, potentially enabling the company to enter the food and nutraceutical markets globally.
The medicinal cannabis cultivated at the new property will be processed at THC’s Southport Facility, which is capable of producing Good Manufacturing Practice (GMP) certified Active Pharmaceutical Ingredient (API) isolates as well as full-spectrum and broad-spectrum extracts.
Access to an additional cultivation site which could be in production within months will support a rapid acceleration of production at the Southport Facility.
THC chief executive officer Ken Charteris said: “THC Global has now secured access to 66,000 square metres of ready-to-cultivate hydroponic greenhouses and an additional 180,000 square metres of open-field agricultural land.
“With this facility, we will be able to cultivate over 80,000 kilograms of dried cannabis flower almost immediately following licencing and permitting, without having to undertake a multi-million-dollar capital expenditure program which could take years to become operational.
“This facility complements our existing cannabis production assets in Australia, where we are currently the holder of all three medicinal cannabis licences from the Office of Drug Control enabling a Farm to Pharma production process at our facilities.”