THC Global is one of Australia’s largest medical cannabis companies, but despite their reputation and their market position, their share price has continuously decreased over the past 12 months. They’re looking to change all that.
Back in May 2020, THC Global launched its Canndeo brand of medicines. Although these Schedule 8 medicines contain a small percentage of THC (the psychoactive component of cannabis), they have been in high demand in Australia ever since. The company also bought Tetra health – a clinic whose patient numbers increased by 30% in June. Speaking to the media, CEO Ken Charteris was quoted as saying:
As a result of the significant increase in demand, both domestically and internationally, THC global is accelerating the expansion of production activity.
However, despite these expansions, THC Global’s shares have fallen 26% in the past 12 months, to a price of $0.30 as of July 3rd. Investors have also noted that the company failed to make a profit throughout 2019, even though their revenue grew by 80%.
Despite its lack of enthusiastic investors, the companies international reach seems to be growing. In New Zealand, the company sold 2250 bottles of their white-labelled medicines to Medlead Therapeutics for $260,000. From October 1st, these medications will be distributed to over 800 New Zealand patients.
Over in Canada, THC Global is expected to enter the market in the third quarter of 2020, with a shipment of 3,000 bottles of medicinal cannabis. As Canada’s medical cannabis market is nearly a decade older than Australia’s, THC has a customer base of over 350,000 registered patients. THC Global is also expecting to enter the European cannabis oil market in the fourth quarter of 2020, in light of new international cannabis export legislation.
Despite these developments, Australian investors should take notice – as Australia’s medical cannabis market may soon be valued at over $200 million annually. THC Global’s products are produced through several Australian facilities, with over 396,000 square meters of manufacturing space. The company is also sourcing dried cannabis from Australia, and cannabis extract from Southern Africa and Canada.