The Hydroponics Company (ASX: THC) had a big day on the share market on Thursday after it announced its acquisition of a new Southport based refinement facility.
Shares in THC soared after the medical marijuana company acquired one of the largest pharmaceutical plant extraction and refinement facilities in the southern hemisphere.
The company closed up 11.5 per cent to 68 cents per share on Thursday afternoon.
The new facility, based in Southport, Queensland, cost THC $2.5 million. Acquired from LEO Pharma, the facility will enable THC to produce high-quality, pure cannabinoids for use in drug treatments.
Chairman Steven Xu hopes this acquisition will give THC the ability to become a global player in the medicinal cannabis game.
"This is a game-changing investment undertaken by THC providing it with large-scale, state-of-the-art bio-manufacturing capabilities required to lead Australia's medicinal cannabis industry," says Xu.
"The addition of this acquisition is a major component of our roll-out strategy that will generate substantial growth for the company."
THC has two business units: the development of medicinal cannabis and the manufacture of hydroponics equipment.
LEO Pharma's spokesperson says the company is excited that THC could come in and utilise the facility to its full potential.
"LEO Pharma's support to Australian patients with skin diseases remains the same. But as global production plans were changed, keeping the facilities at Southport did not match with our future strategy for manufacturing of products," says LEO Pharma.
"We are therefore glad that THC will take over the facilities in Southport."
On Friday the company announced its quarterly revenues increased by 31 per cent from the December quarter, with expected annual revenue to reach $4.3 million.
The group now has $13.2 million in cash at the end of the March quarter.
Business News Australia