ASX cannabis stock THC Global Group Ltd (ASX: THC) has seen its share price surge higher in today's trade. The THC share price is up 3.66% at the time of writing to $0.42 per share as it recovers from Monday's declines.
So, what's driving the Aussie cannabis group's shares higher in today's trade?
Why this ASX cannabis stock is surging higher today
THC made a big announcement to the ASX this morning regarding its ongoing operations.
The ASX cannabis company reported the start of medicinal cannabis production with the largest bio-floral extraction facility in the Southern Hemisphere now in operation.
This comes after the company was granted a manufacturing license for the plant in early November.
Harvesting has started at its Bundy Facility and THC has the capacity to support over 250,000 Australian patients.
THC is targeting commercial scale supply of Australian-produced medicinal cannabis for domestic use and export by early 2020.
What else did THC report?
THC reported increased CBD product sales in New Zealand in a big plus for the ASX cannabis company.
After selling its entire recent shipment in New Zealand, THC has now reordered more stock. Simplified prescription processes have been a big boost for the company's sales across the ditch.
THC is expecting strong sales once its product is exported into New Zealand next year and investors have been impressed with the potential earnings boost today.
THC also reported $3 million in unaudited trading revenue over 9 months from its Canadian operations. The ASX cannabis company is looking to expand its revenue base to a potential $5 million in 2020.
Foolish takeaway
The THC share price climbed higher after the update as shareholders received the latest update well.
THC shares are trading at $0.42 per share, having edged lower on Monday although it is still a micro-cap stock.
THC has a market capitalisation of just $58 million, which means less liquidity if you do decide to buy in.
