Shares in medical marijuana junior The Hydroponics Company Ltd (ASX: THC) soared 75% today after the group reported its wholly-owned subsidiary Cannadeo Limited has signed a deal with a European partner to "distribute cannabis delivery systems throughout Australia".
Initial products supplied by its European partner, Endoca, include CBD oil and CBD (cannabidiol) capsules that theoretically doctors could prescribe to patients suffering from any number of common medical complaints. The Hydroponics Company currently has 104.1 million shares on issue and after today's almost vertical share price rise it boasts a market cap around $90 million at 92 cents per share.
Revenues for the quarter ending September 30 2017 were just $463,000, with an operating cash loss of $661,000.
In today's announcement the company didn't reveal just what impact it expects the deal to have on its revenues or bottom line. It looks another speculative business serious investors might want to avoid.
