The Hydroponics Company gets approval to grow cannabis, its shares go nuts

Saeed Khan/AFP/Getty Images

Shares in the Hydroponics Company soared after it announced its subsidiary Canndeo has been granted a licence to grow medicinal cannabis in Australia.

At the close, the shares were up 42% to $0.32.

The company says the licence from the Australian Government’s Office of Drug Control is an important step to becoming a legal domestic source of cannabis for medicinal use.

“It is a major step in the transition of the company towards commercial supply and monetisation of the opportunity that exists in the medicinal cannabis market,” says CEO David Radford.

Australian created new laws in October last year to allow the cultivation, production and manufacturing of medicinal cannabis products in Australia.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at