THC Global share price surges 11% higher on cannabis production update

The THC Global Group Ltd (ASX:THC) share price is surging higher after providing an update on its cannabis production activities…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The THC Global Group Ltd (ASX: THC) share price has returned from its trading halt and surged higher.

At the time of writing the cannabis company's shares are up 11% to 41 cents.

Why were THC Global's shares in a trading halt?

THC Global requested the trading halt whilst it prepared an update on production at its Southport Manufacturing Facility.

It has now released that update and revealed that it has completed the first farm-to-pharma processing of medicinal cannabis at the facility.

The Southport Facility is the largest pharmaceutical bio-floral extraction facility in the southern hemisphere and is licensed and permitted to process medicinal cannabis.

Management believes the first production of medicinal cannabis by the company is a significant milestone for both it and the Australian medicinal cannabis industry. It signifies the commencement of its production activities and will now be able to offer large scale medicinal cannabis production.

It also feels this validates its farm-to-pharma operation capability, which it believes lays the path for the company to scale up its cultivation and extraction activities through 2020.

THC Global's chief executive officer, Ken Charteris, said: "THC Global's medicinal cannabis team have achieved a major milestone today both for the Company and for the Australian medicinal cannabis industry by producing our first farm-to-pharma medicinal cannabis at our Southport Facility, in advance of our commercial scale launch next year."

"THC Global has ready-to-go production assets within Australia capable of servicing over 250,000 patients in addition to the global export market, making THC Global a leader in the Australian medicinal cannabis industry, and in prime position to be a global exporter of Australian medicinal cannabis medicines," he added.

Zelda update.

It isn't just THC Global making an announcement today. This morning Zelira Therapeutics Ltd (ASX: ZLD), formerly known as Zelda Therapeutics, announced that it will bring its HOPE Franchise to the state of Louisiana with a licensing agreement.

This agreement is expected to generate immediate revenue through a licensing arrangement which includes an up-front fee and ongoing royalties.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Man smiling on top of rocks with mountains in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were in a nervous mood today.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Beach Energy, Boss Energy, Cochlear, and Light & Wonder shares are pushing higher

These shares are having a good time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday session for ASX investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »