Cucumber farm leased to grow cannabis

THC Global cannabis lease
THC Global has secured a lease from Eden Farms over greenhouses and open farm land to grow cannabis.

Medicinal cannabis company THC Global has secured a lease over 6.6 hectares of hydroponic greenhouses and 18ha of land from Eden Farms near Bundaberg.

The ASX-listed company announced the greenhouses will be repurposed from growing cucumbers to produce 80,000kg of dried cannabis.

“It's a major step in being able to deliver Australian-produced medicinal cannabis products to Australian patients in early 2020,” the company said.

“THC Global will submit a request to the Australian Office of Drug Control (ODC) for the property to be an additional cultivation site under an existing licence held by subsidiary Canndeo Limited.

“Canndeo currently holds all three cannabis licences in Australia.”

Canndeo last week officially opened its Bundaberg medicinal cannabis research and plant production facility, announcing plans for expansion and more than 70 jobs.

THC Global will look to use part of the open-field land to grow hemp for global food and nutraceutical markets.

A nutraceutical is a pharmaceutical alternative which claims physiological benefits.

THC Global chief executive Ken Charteris said obtaining the Eden Farms site would fast-track production “without having to undertake a multi-million dollar capital expenditure program which could take years to become operational”.

“This facility complements our existing cannabis production assets in Australia.”

Terms of the lease will be settled with the ODC application and are expected to be based on the volume of cannabis produced.

Medicinal cannabis grown at Bundaberg will be processed at the company's Southport facility.

Eden Farms was established in 1983 as the first supplier of continental cucumber on the east coast of Australia.

A greenhouse on Eden Farms growing cucumber.

THC Global shares closed today at 47.5 cents, up 1.06 per cent.