Exclusive Interview: The Hydroponics Company’s Dual Focus on Canada and Australia
November 27th, 2017
News, Top News
CFN Media’s Rachelle Gordon recently spoke with The Hydroponics Company Ltd. (ASX: THC) CEO David Radford about the company’s parallel focus on Canada and Australia and its long-term plans to grow through both organic growth and acquisitions.
The company was recently issued a Medicinal Cannabis License from the Office of Drug Control under the medical cannabis provisions of the Narcotics Drugs Act of 1976 in Australia, which was a major milestone in the company’s goal to supply high quality products to Australians. Currently, the company is completing a facility in Queensland for research and growing operations that will be key to monetizing Canndeo’s (a wholly owned subsidiary of The Hydroponics Company Ltd.) cannabis strain IP and leveraging its experience in breeding, growing, and developing Cannabis Sativa.
Rachelle Gordon: You are an international portfolio-based business capitalizing on the global cannabis markets by providing resources to cultivators but also through the development and delivery of your own cultivated medical cannabis, tell us about this model?
David Radford: The model is designed to give investors exposure to the rapidly growing Canadian market through our wholly owned subsidiary-Crystal Mountain, and in parallel to enable them to share in the upside from the legalisation of medicinal cannabis in Australia.
Where and how you are sourcing medical cannabis, where is the company (through its subsidiary) cultivating on its own and which global markets are you serving?
As has been announced, the Company has entered into an agreement with Endoca for the supply of high quality medicinal cannabis products. This gives us the ability to supply the Australian market whilst the Company is waiting upon finalisation of its licensing to allow production and manufacturing of local product. The company is focused in the Australian medicinal cannabis market.
Which assets do you own and control, including licenses and research capabilities in order to deliver on your overall strategy?
The 2 Medicinal Cannabis licenses owned by the Company allow for R&D and Growing of medicinal cannabis. The Company is waiting upon Government approval for its final licence, the Manufacturing licence. This will give THC all 3 available licences in Australia
In October, THC was issued a Medicinal Cannabis Licence by the Office of Drug Control, which is the second of three licences required to commence cultivating and manufacturing medicinal cannabis at our Australian facilities. We expect the final licence, a Manufacturing Licence, will be issued in the near term and have invested substantially in our Australian facilities to enable a rapid transition to commercialisation
THC has invested in R&D and growing facilities in Australia and is able to work with the cultivation and selection of specific strains of medicinal cannabis
Explain the high level monetization strategy that includes proprietary cannabis strain IP, breeding and other expertise?
The Australian market is predominantly focused on the CBD market in the short term. THC through its subsidiary Canndeo has the capability to select and grow specific strains of Cannabis sativa, with plant breeding rights on 6 strains of plants. Initial discussions have been held with several companies in Canada to explore the opportunities for R&D projects in Australia, which would be able to qualify for the Australian Government’s R&D tax credit-currently 43c/$ for locally conducted R&D.
What is the high level plan to seize on the projected growth of the global cannabis industries?
Exposure to the Canadian market provides THC with an opportunity to share in the growth of the market through their “picks and shovels” business-Crystal Mountain. Developing new medicinal cannabis products through Clinical Trials.
Finally, as an investor in THC, which markets and segments are THC investors exposed to and how is their investment de-risked?
Canada: Expansion plans include both organic and acquisitive. Organic growth through the addition of new products and agencies to the Catalogue. Acquisitive growth once suitable targets have been identified.
Australia: Exposure to both Canadian and Australian markets. Australia will develop through innovative solutions to building the market.
About The Hydroponics Company
The Hydroponics Company (ASX: THC) is at the forefront of developing a leading, diversified worldwide cannabis business, focused on the development and delivery of medicinal cannabis, manufacturing and distribution of hydroponics equipment, materials and nutrients. We aim to capitalise on the surging global cannabis market, generating significant near term value through our strategic assets, rapidly expanding these core businesses in 2017 and beyond.
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About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
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