Australian medical cannabis companies Cannatrek and THC Global (ASX:THC) have signed a supply and manufacturing agreement that appears to involve a bit of barter.
THC Global has operations in Canada and a pharmaceutical production facility in Southport in Queensland, claimed to be one of the largest pharmaceutical GMP cannabis manufacturing facilities in the world. The firm also has a cultivation facility in Bundaberg, in the same state.
Cannatrek has a 16,000 square metre greenhouse facility near Brisbane, Queensland and is building a huge project in Victoria; a venture that was awarded Major Project status by the Australian Federal Government early this year. The Victorian project, to be located in the Shepparton region, will be 10 times larger than Southport in terms of greenhouse area. The company has previously stated it could potentially grow 160 tonnes of medical cannabis annually at the facility, which will also provide hundreds of jobs for local workers.
Under the new arrangement between the two companies, THC Global will produce oil-based cannabis medicines from flowers supplied by Cannatrek from its Southport facility. The minimum annual supply will be 480kg – 240kg for production of Cannatrek medicines and 240kg for THC Global’s Canndeo medicines.
“By utilising our Southport Facility to produce high quality medicinal cannabis medicines for Cannatrek’s brand as well as our Canndeo brand, we’re increasing the number of Australian produced medicines available to patients, and supporting the development of the industry as a whole,” said THC Global CEO, Ken Charteris.
In a separate agreement with Tetra Health, which was acquired by THC Global last month, Cannatrek medicines are to be made available for prescription and supply through Tetra’s network of more than 600 prescribing physicians.
Cannatrek says it expects to supply the first shipment of dried cannabis flowers under the agreement in the third quarter of this year, with the first Cannatrek-branded medicines to be released by THC Global in the final quarter of 2020.
The first Canndeo branded medicines manufactured in Australia rolled off THC Global’s production line late last year. The products were based on extracts from cannabis supplied by THC Global’s Bundaberg cultivation facility.