Australia’s cannabis patient sector was just getting into motion when suddenly, The Hydroponics Company  dropped out of an agreement to launch Canadian-type cannabis clinics across the country.

Back in December, THC signed an IP licensing agreement with Canada’s National Access Cannabis to inaugurate NAC’s Canadian Clinic Model.

After visiting Australia recently, a National Access system implementation manager came to the conclusion that the country’s current regulations would not be a good match for the Canadian system.

THC Chairman says medical cannabis clinics in Australia are impossible to implement

This news doesn’t come as a major surprise, considering the fact that Australia lacks experience in prescribing medical cannabis.

The two companies don’t seem to be holding any grudges, however.

In fact, they are continuously engaging in communication pertaining to medicinal cannabis, e.g. services and products that could benefit patients in Australia.

“The Canadian Clinic Model is very attractive, and it is unfortunate that it is not possible to implement it at this time in Australia,” said THC Chairman Steven Xu.

“THC will continue to investigate ‘outside-the-box’ doctor and patient engagement opportunities. THC continues to develop its supply and distribution procedures including through its partnership with Synapse on the Medicinal Cannabis Medicines Portal and other avenues,” he continued.

Shareholders are disappointed at the news about medical cannabis clinics in Australia

Unfortunately, THC shares nosedived shortly after the announcement that the company wouldn’t be establishing Canadian-style medical cannabis clinics in Australia.

This news came as a surprise to shareholders, who were disappointed to discover THC shares tumble from 72c to 68c from opening to close on Friday, May 4.

An operations update has since been released by THC. The company disclosed how it is incorporating THC Pharma Pty Ltd (THC Pharma) as a way of operating the company’s New South Wales medicinal cannabis facility and Queensland-based pharmaceutical manufacturing site.

Executive Director Ken Charteris will lead THC Pharma in the forthcoming project.

Dr. Michael Harrison will also be getting involved in the project. As the former API Manager at LEO Pharma, Harrison should have no trouble familiarizing himself with the biomanufacturing site.

THC acquired the facility from LEO Pharma and, ironically, Harrison is leading THC’s Canndeo division as Executive Director.

Access to medicinal cannabis in Australia is currently restricted

Less than 1,000 patients can access medical cannabis in Australia – a shockingly low figure considering the drug was legalized for medicinal use two years ago.

Nevertheless, the outlook appears to be good for Australia in 2018, with active members of the cannabis community predicting more streamlined rules and increased clinic access for patients who are in-need of medicinal-grade cannabis treatments.

THC affirms that it will booster it’s efforts in submitting applications to the Office of Drug Control. By doing so, THC can gain the necessary approvals for processing to begin in its biomanufacturing facility.

Furthermore, THC strives to apply for necessary licenses and applications that will permit organic medicinal cannabis cultivation at the northern NSW site.