It has been lately reported that out of about 28 companies listed on ASX, with their active interest in the medical cannabis space, 19 companies have their business operations largely based around marijuana.
Out of this number, 13 companies have posted data for the ‘customer receipts’ mentioning the data on how much money the companies have received from customers during the quarter. The majority of the stocks have shown a significant growth and have started making good amount with just six companies presenting nil receipts during the September quarter. Out of these six companies, four companies were mainly from biotech and pharmaceuticals space.
Excluding Elixinol Global (ASX: EXL), the only profitable pot stock, other 18 companies were paid a total of $2.9m in the September quarter and Elixinol was paid $9.8m totaling to $12.7m during the September quarter. EXL Production and manufacturing cost jumped over $4m in the current year. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]
One of the biggest beer brewers of the world is highly bullish on the cannabis –infused beverages.
As per the recent update made by Molson Coors, one of the seventh biggest brewer in the world by volume and owner of popular US beer brands such as Miller and Coors on the market size of the non-alcoholic cannabis infused beverages, 30% of the total market in Canada alone up to $US 3 billion can be trapped by them.
Migration to the emerging legal recreational cannabis market is well expected by many brewers as they fear that legal marijuana can eat the alcohol sales. The new market will open several investment avenues for varied industries. As per the recent market research made on the industry size, the current size is estimated to be around $18 million and is expected to be worth billions with a decade.
The biggest brewer has made very clear that the sector has promising opportunities and their company will surely be a leading participant in the market. A special team is formed which will be working down the line to explore the opportunity in cannabis.
In order to produce cannabis infused beverages for the Canadian market, the company has entered into a joint venture with HEXO, a Quebec based marijuana cultivator in the month of August. Australia legalized the usage of cannabis in October 2016. State governments have permitted the prescription of the medicinal cannabis to certain patient groups under certain conditions.
With the decline in the beer sales slightly across the industry, Molson Coors’ forayed into the cannabis space. Speculation prevails over what will be the stimulation factor that could kick the Australian marijuana industry into high gear.
Two of the ASX’s biggest pot stocks that remained at the bottom end earners were Althea (ASX: AGH) and Cann Group (ASX: CAN). With the legalization of Cannabis and strong market size of the non-alcoholic cannabis infused beverages, huge potential and investment avenue opens for varied companies operating primarily in this space and the impact of the same can be seen in near term with the shares of all major companies who are actively involved in this space to new records.
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