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- THC Global (THC) has signed a supply agreement with MGC Pharmaceuticals (MXC) for its medicinal cannabis products
- THC’s Canndeo branded medicinal cannabis product range will be launching in Q1 2020
- The agreement has a minimum term of 18 months and the first purchase order has been submitted for more than $40,000
- THC has entered a trading halt with shares last priced at 39 cents apiece
THC Global (THC) has signed a supply agreement with MGC Pharmaceuticals (MXC) for its medicinal cannabis products.
Under the agreement, MGC Pharma will provide THC with an immediate supplementary source of medicinal cannabis products which will be packaged and made available to patients under the Canndeo brand.
THC expects to launch these products in Australia and New Zealand through the the first quarter of 2020.
The agreement also provides for both companies to collaborate on the future supply of Active Pharmaceutical Ingredients (API) extracts as well as other finished products.
Assessing an immediate supplementary sure of medicinal cannabis products enables THC to scale up its supply to patients quicker and offer patients a broader initial product range under the Canndeo brand.
The agreement with MGC Pharma also provides THC with access to tetrahydrocannabinol (THC) containing formulations complementing its current focus on producing cannabidiol extracts.
THC will supply the medicinal cannabis products to patients under its Canndeo brand.
Initially, the company will launch three oral liquid formulations in partnership with MGC Pharma and these products are expected to be available for patients in Australia and New Zealand in Q1 2020.
Both companies are actively developing global export market opportunities and, through this agreement, expect to be a position to price competitive high quality pharmaceutical grade medicinal cannabis products to the Asian, South and North American, European, and Oceanic markets.
“Our agreement with MGC Pharma provides THC Global with an immediate extension of our Canndeo branded medicinal cannabis product range, as well as a pathway for further collaboration with MGC Pharma taking advantage of THC Global’s Southport Facility,” THC CEO Ken Charteris commented.
“We are pleased to partner with THC Global to produce and supply white label Canndeo branded phytocannbinoid products,” MGC Pharma CEO and Managing Director Rob Zomer said.
“We expects that further discussions between MGC Pharma and THC Global on mutual exports of product to respective international markets will be beneficial to all going forward,” he added.
The agreement has a minimum term of 18 months and includes a bi-annual review towards the expansion of the agreement.
The first order has been submitted by THC for approximately €25,000 (AUD$40,300) and subsequent orders of no less than €50,000 (AUD$80,600) when required.
THC has entered a trading halt with shares last priced at 39 cents in a $54.90 million market cap.
