The THC Global Group Ltd (ASX: THC) share price has returned from its trading halt and rocketed higher.
In morning trade the cannabis company's shares are up 19% to 46 cents.
Why is the THC Global share price rocketing higher?
Investors have been buying THC Global's shares after it announced that the Australian Therapeutic Goods Administration (TGA) has granted it a licence to manufacture therapeutic goods from its Southport Facility.
The licence, which is more commonly known as a GMP Licence, means it now has all the licences required to commence the commercial manufacture of medicinal cannabis.
The company's Southport Facility is the largest pharmaceutical bio-floral extraction facility in the Southern Hemisphere and is now one of the world's largest pharmaceutical GMP licenced facilities for the manufacture of medicinal cannabis.
What is a GMP Licence?
A GMP Licence is a mandatory requirement for the commercial manufacture of medicinal cannabis in Australia. It is also recognised for the supply of pharmaceutical goods in 29 countries across Europe, Asia and, North America (Canada).
The licence authorises THC Global to manufacture Active Pharmaceutical Ingredient (API) extracts, to formulate and package medicines, conduct on-site testing and analysis, and supply medicinal cannabis for human trials in Australia and globally.
What now?
The company revealed that it will now seek to complete negotiations for the export supply of cannabis medicines. The European design and equipment origin of the Southport facility meets key requirements for entering the rapidly expanding European market.
Management believes this differentiates THC Global from almost all established cannabis companies internationally.
THC Global's chief executive officer, Ken Charteris, commented: "THC Global has now received a pharmaceutical GMP licence issued by a government authority, which remains a rarity in the cannabis world. We anticipate near-term completions of commercial negotiations with multiple parties interested in our scalability, quality of production and ability to compete on price globally."
Also on the move this morning is cannabis company Creso Pharma Ltd (ASX: CPH). Its shares are up 10% to 21 cents after announcing that it has now sold over three million anibidiol portion sachets since it was launched in late 2017.
