THC's (ASX: THC) recent acquisition of a Southport manufacturing facility has added $16.8 million to the company's balance sheet, developing a clear path for the listed company becoming a dominating player in the medicinal cannabis industry.
The Hydroponics Company acquired the Southport facility in April 2018, which included a pharmaceutical botanicals extraction and purification facility, as well as land and building in the Gold Coast.
The facility complements its existing licensed research and development facility in Bundaberg, Queensland, and a 60,000sqm site in Northern NSW.
The company says the Southport facility will be a revenue generating asset, able to produce high-quality pharmaceutical grade GMP medicinal cannabis product.
Chairman of THC, Steven Xu, says the facility will allow the company to ramp up production and expand internationally.
"Having secured significant medicinal cannabis growing capability and a manufacturing facility with industry leading capacity, THC has a clear path to a revenue generating medicinal cannabis business in the near term, with the ability to service domestic patients and expert into other markets," says Xu.
"The increase in shareholder value from the acquisition of THC's Southport Manufacturing Facility highlights THC's prudent investment and corporate strategy."
The Southport facility is the largest southern hemisphere facility of its kind.
THC also announced on Wednesday morning that it has appointed a new chief executive officer, Ken Charteris.
Charteris will lead THC's global corporate strategy, focussing on the build-out of the group's medicinal cannabis business.
The new CEO is a veteran of multiple biotech and pharmaceutical companies over the past three decades, and has been involved with THC even before the group listed on the ASX.
Shares in THC are up 1.77 per cent to $0.58 per share.
Business News Australia