Business

THC shares high on acquisition

Pot stock The Hydroponics Company has soared after the company acquired one of the largest plant extraction facilities in the southern hemisphere.

Shares in The Hydroponics Company (THC) have soared after the pot stock acquired one of the largest pharmaceutical plant extraction and refinement facilities in the southern hemisphere.

THC shares added seven cents, or 11.5 per cent, to 68 cents.

The company says the $2.5 million acquisition of the facilities in Southport, Queensland from LEO Pharma will enable it to produce high-quality, pure cannabinoids for use in drug treatments.

Cannabinoids are the chemicals which give the cannabis plant its medical and recreational properties, such as THC (tetrahydrocannabinol) and CBD (cannabidiol).

THC believes that the acquisition will help it become a globally significant manufacturer of medicinal cannabis products for the domestic and future export markets.

"This is a game-changing investment undertaken by THC providing it with large-scale, state-of-the-art bio-manufacturing capabilities required to lead Australia's medicinal cannabis industry," THC chairman Steven Xu said in a statement on Thursday.

"The addition of this acquisition is a major component of our roll-out strategy that will generate substantial growth for the company."

The Hydroponics Company has two business units: the development of medicinal cannabis, and the manufacture of hydroponics equipment.

Other pot stocks, such as Auscann Group, Creso Pharma and Cann Group, were also higher in intraday trading on Thursday.

A recent report on the ABC's Four Corners program said that major players in the cannabis sector are optimistic that cannabis will be legalised for recreational use in Australia now that it has been legalised for medicinal purposes.

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