The THC Global Group Ltd (ASX: THC) share price has returned from its trading halt and is zooming higher on Tuesday morning.
At the time of writing the cannabis company's shares are up 11% to 34.5 cents.
Why was the THC Global share price in a trading halt?
THC Global requested the trading halt on Friday pending the release of an announcement relating to the receipt of an additional permit from the Australian Office of Drug Control (ODC) for its operations.
This morning the company revealed that it has received an expanded commercial cultivation permit from the ODC. This has allowed it to commence production towards the supply of medicinal cannabis medicines to an initial 6,000 Australian patients.
According to the release, THC Global will supply medicinal cannabis under the Canndeo brand. Supply will be direct to pharmacies, clinics, and hospitals, meeting the requirements of the Narcotic Drugs Act and Regulations.
In addition to this, the company advised that it has established CanndeoCare for the support of doctors and health care professionals.
CanndeoCare will provide information on prescribing as permitted by the Therapeutic Goods Act from a team of qualified healthcare professionals focused on supporting responsible and legal prescribing of medicinal cannabis.
The company's CEO, Ken Charteris, said: "We are committed to bringing lower costs and higher quality to Australian patients. Our complete control of cannabis biomass, manufacturing, supply, and support will help achieve this. We expect to supply at least an initial 6,000 patients using Canndeo medicinal cannabis on an ongoing basis commencing from Q2 2020. Further Australian patients and global exports will follow."
Elsewhere in the industry today, Althea Group Holdings Ltd (ASX: AGH) and Cann Group Ltd (ASX: CAN) shares are also on the rise. They are up 14% and 12%, respectively, at the time of writing. This appears to have been driven by improving investor sentiment.
