Canadian Cannabis Growing Facility Binding Agreement Signed
Key Points:
• THC Global’s wholly owned subsidiary, Vertical Canna Inc has signed a binding due diligence agreement for the build out of a Canadian licenced cannabis producer
• Acquisition remains subject to due diligence and finalisation of terms • On acquisition, and subject to finalisation of licencing, THC Global will own a full-scale cannabis growing facility in Canada in addition to its Australian facilities
• Targeting the Canadian medicinal and recreational cannabis markets with direct sales
THC Global Group Limited (THC Global or the Company) (ASX: THC) advises that its wholly owned subsidiary, Vertical Canna Inc has entered into a binding agreement to conduct due diligence for the acquisition of a Canadian company which is in final stages of becoming a Licenced Producer of Cannabis.
On acquisition, THC Global will complete the build out of a full-scale cannabis growing facility which will be able to offer direct retail sales in addition to supporting other commercial sales. THC Global is also in negotiations to engage specialist personnel in the Cannabis sector to support this build out.
THC Global’s objective is for Vertical Canna to pursue a build out of a vertically integrated cannabis business across North America through strategic acquisitions and partnerships with a focus on short paths to profitability with strong potential for value development. In parallel to this strategy, Vertical Canna is currently developing a new retail cannabis and equipment brand which will soon be available across stores in Canada.
The pursuit of a stronger presence in Canada is in response to positive feedback received from the Canadian capital markets and the broader cannabis sector towards THC Global as a high-growth cannabis business with the capacity to produce large quantities of pharma-grade product in the near term.
Chief Executive Officer, Ken Charteris, commented: “THC Global is looking at entering new international markets to further cement its presence as a full-scale global cannabis producer. Canada is a logical next step in the Company’s global expansion plans given our existing Canadian presence with Crystal Mountain Products. Our focus in identifying new global opportunities will be to seek acquisition assets and strategic partnerships that lead to near term revenue generation.
“Further, the opportunity to enter the retail sector in Canada in the coming months is very attractive and will offer deep synergies with our Crystal Mountain Products business and may lead to future supply opportunities from our existing Australian production facilities.”
For further information, please contact:
Ken Charteris
Chief Executive Officer
Henry Kinstlinger
Company Secretary
THC Global Group Limited Level 2, 131 Macquarie Street Sydney, NSW 2000 Australia
P: +61 2 9251 7177 E: henry.kinstlinger@thcl.com.au E: ken.charteris@thcl.com.au
Michael Lovesey
Director Corporate Media Relations
MMR Corporate Services Pty Ltd Level 2, 131 Macquarie Street Sydney, NSW 2000 Australia
P: +61 2 9251 7177 M: +61 449 607 636 E: michaell@mmrcorporate.com
THC Global Group Limited (ASX: THC)
THC Global operates under a ‘Farm to Pharma’ pharmaceutical model and is currently delivering high quality medicinal cannabis products to Australian patients through existing access schemes. Having secured both a significant growing capacity over two grow sites, and an industry-leading pharmaceuticals biomanufacturing facility with attached testing and product development laboratory, THC Global is in prime position to service both domestic patients and the export market. THC Global’s commercial partners operate across four continents, supporting future international growth. In addition to its core medicinal cannabis business, THC Global owns two Canadian companies, being Crystal Mountain Products and Vertical Canna Inc. Crystal Mountain Products operates a revenue generating global hydroponics retailer and distributor of equipment, material, and nutrients to cannabis growers and producers. Vertical Canna Inc is an investment vehicle through which THC Global intends to build, through acquisitions and strategic partnerships, a vertically integrated Canadian cannabis producer and retailer.