Sydney, Australia (ABN Newswire) - The Hydroponics Company Limited (ASX:THC) (OTCMKTS:HDRPF) (THC or the Company), Australia's leading Medicinal Cannabis company(see Note below) advises that the conditions precedent have been met for the lease of a Northern NSW property to be used for the growing of medicinal cannabis strains as a primary source for its own manufacture within its Southport manufacturing facility.

Key Points

- Lease for Northern NSW cannabis growing site secured

- THC expediting regulatory approval lodging and site development for growth of THCowned strains as well as imported strains from international commercial partners

- Northern NSW site to be established as primary cannabis source for THC's large-scale manufacturing operation in Queensland

- Completed off-take agreement for THC's medicinal cannabis for use by Meluka Health

- Completed supply agreement for Meluka's tea-tree extract for use in THC medicinal cannabis products

The meeting of the conditions precedent and agreement to terms of the final agreements follow the Company entering into a Binding Term Sheet in May 2018 between THC, Jenbrook Pty Ltd (Jenbrook) and Meluka Health Pty Ltd (Meluka Health).

The terms agreed relate to the following:

- Medicinal cannabis supply agreement where THC will provide exclusive access to THC's medicinal cannabis for use in honey products by Meluka Health in its Meluka Honey products (the Cannabis Off-Take Agreement)

- Lease agreements to secure part of Jenbrook's Northern NSW property for the growing of medicinal cannabis (the Lease Agreement); and

- Tea tree supply agreement where THC will have access to Meluka's extract products for use in development of new medicinal cannabis products (the Tea Tree Extract Agreement).

Relevant licence applications have been agreed by THC and are being lodged on an expedited basis.

THC Chief Executive Officer, Ken Charteris commented:

"Securing both an additional medicinal cannabis growing site and an off-take agreement further advances THC's path to near term revenue generation from its medicinal cannabis business and complements our acquisition of an industry leading pharmaceuticals manufacturing facility.

"With both a significant growing and manufacturing capability in place, THC is even more attractive to global commercial partners who see THC as being one of the most advanced in the industry".

Note: Assessment based on key peers (CAN, AC8) comparison matrix



About The Hydroponics Company Ltd:

The Hydroponics Company Ltd (ASX:THC) (OTCMKTS:HDRPF) (FRA:9TH) is at the forefront of developing a leading, diversified worldwide cannabis business, focusing on two core business units: Development and delivery of medicinal cannabis, and manufacturing and distribution of hydroponics equipment, materials and nutrients.



Source:

The Hydroponics Company Ltd



Contact:

Henry Kinstlinger
Joint Company Secretary
The Hydroponics Company Limited
P: +61-2-9251-7177
E: henry.kinstlinger@thcl.com.au

Michael Lovesey
Director Corporate Media Relations
MMR Corporate Services Pty Ltd
P: +61-2-9251-7177
M: +61-449-607-636
E: michaell@mmrcorporate.com