The Australian Government’s Office of Drug Control has granted Hydroponics Company Limited (ASX:THC) subsidiary Canndeo a medical cannabis license.
The license authorises the cultivation of cannabis plants for medicinal purposes and is the second of three licences the company is pursuing.
“This licence is a major milestone in the company’s objective to supply high quality medicinal cannabis products from both local and international sources to the Australian patient groups,” said THC’s Chief Executive Officer David Radford.
In July this year, Canndeo was granted a medicinal cannabis research licence; among the first companies in the nation to do so. Canndeo is among the few companies to hold two licences. The final licence the company covers manufacturing – an application for which has already been lodged.
Canndeo intends growing and processing cannabis in Bundaberg, Queensland.
The Hydroponics Company listed on the ASX in May this year, following a successful $8 million capital raising through a heavily oversubscribed IPO.
The firm states it has 600 products and 9 registered trademarks. As well as its medical marijuana growing and processing aspirations, it manufactures and distributes hydroponic cultivating and processing equipment, plus related materials and nutrients. THC also engages in the design, construction and management of small to large-scale greenhouses.
THC’s acquisition of Canndeo Limited, which was founded by Agri Fibre Industries Pty Ltd, brought the company more than 17 years of experience in the breeding, variety selection and growth management of Cannabis sativa.
In May this year, US-based pharmaceutical company Phoenix Life Sciences agreed to a strategic alliance with Canndeo; which THC said would accelerate the introduction of medicinal cannabis into Australia
THC says it is targeting multiple markets with high purity cannabidiol (CBD). In its latest quarterly activities report, the company said it had identified several potential partners for a range of medical solutions across Europe and in Israel, with negotiations concerning contracts currently in play with several prospects.
The company also has its sights set on increasing the scale and scope of its services to the lucrative Canadian marijuana market through wholly owned subsidiary Crystal Mountain Dragon Vision (CMDV) and has signalled an intent to acquire similar operations.
