With the legalisation of cannabis for the medicinal and recreational purpose in the economies such as Canada and Australia, the companies which are dealing in this space are anticipated to grow at an exponential pace in the forthcoming years. Let’s have a closer look at these pot stocks listed on the ASX.
Cann Group Limited (ASX: CAN)
Cann Group Limited (ASX: CAN) produces and supplies medical cannabis. The company cultivates, extracts and breeds medical cannabis for a range of diseases and medical conditions. Cann Group markets its products in Australia.
In a recent development, the company has released its investor presentation. As per the same, the company has stated its mission to supply high-quality, trusted and innovative medicinal cannabis products and delivery platforms to enhance the wellbeing of patients in Australia and globally.
The company has shared its future outlook. As per the same, it expects to supply resin to the Victorian Department of Health. The group will also work towards IDT manufacturing (pending regulatory approval). The company will concentrate on Australian patient supply, and on progressing the Mildura facility. To make this a reality, the company continues to focus on growing the team with opportunities available for people with horticultural, pharmaceutical, manufacturing and engineering experience and CAN has also secured offtake agreement for growing its export markets.
For the half year ended on ended 31 December 2018, the company’s net loss from ordinary activities increased by $3.436 million to $4.898 million. The revenue from ordinary activities of $95K consists primarily of research and development credits received, totalling $92K and the remaining $3K consists of revenue from ordinary activities received from the sale of products.
The stock at market close on 29 March 2019, traded at $2.30, with a market capitalisation of $321.32 million. The stock has generated a year till date return of 15%.
THC Global Group Limited (ASX: THC)
THC Global Group Limited (ASX: THC) is engaged in the business of pharmaceuticals. The company is developing cannabis.
The company recently reported that its 100% subsidiary, Vertical Canna, has acquired a Canadian company, Canada Inc., which holds the property in Nova Scotia and is in the process of becoming a Licenced Cultivator of cannabis. The purchase price for the acquisition of Canada Inc. is an aggregate 450,000 shares in the company with C$200,000 paid to the two vendors. Jonathon Inkley is a vendor of Canada Inc. and will accordingly receive half of the purchase price.
For the year ended 31 December 2018, the company reported revenue from ordinary activities of 2,664,094, up 44% on a Y-o-Y basis. However, the loss from ordinary activities for the period after tax attributable to members came in at 8,611,270, up 237% on pcp.
The stock at market close on 29th March 2019, traded at $0.57 during the day’s trade, with a market capitalisation of $72.8 million. The stock has generated a year till date return of 22.34%.
Medlab Clinical Limited (ASX: MDC)
Medlab Clinical Limited (ASX: MDC) operates as a nutritional early phase drug development company. The company offers research and product development in the field of chronic kidney disease, obesity, depression, pain management, and muscular-skeletal health. Medlab Clinical develops bacteria-based medicines.
In a recent development, the company’s CEO, Dr. Sean Hall presented a clinical NanaBis™ update to the practitioners in medicine as a part of ongoing medical education. The company is enormously satisfied with the pooled data collected till date as well as the ongoing regulatory trial for a permitted drug.
For the half year ended 31 December 2018, the company registered revenue from ordinary operations of $3,079,012, up 26.3% on pcp. Also, loss from ordinary activities after tax attributable to members of the company came in at $3,665,900, up 61.5% on pcp.
The stock at market close on 29th March 2019, traded at $0.37 during the day’s trade, with a market capitalisation of $78.08 million. The stock has generated a year till date return of -5.13%.
Auscann Group Holdings Ltd (ASX: AC8)
AusCann Group Holdings Ltd (ASX: AC8) operates as a holding company. The company develops cannabis-based medical products.
In a recent development, one of the directors, Mr. Malcolm James Washer, as on 7 March 2019, in an on-market trade acquired 144,000 fully paid ordinary shares for a consideration of which can be bifurcated as 28,000 shares at $0.40 each and 116,000 shares at $0.4055 each.
The company lately published its investor presentation for the H1 FY19. The company has robust and tactical partnerships. Also, it has experienced team members, which provide the company with a competitive advantage. The company has a strategy to develop and produce cannabinoid pharmaceuticals addressing the needs of doctors and their patients.
As per the financial report for the H1 FY19, the company reported the loss of the consolidated entity for the half year at $4,438,372 (2017: $4,829,822).
The net assets of the consolidated entity increased to $43,255,881 as on 31 December 2018 from $14,112,032 as at 30 June 2018. The company’s balance sheet had over $41 million in cash as of 31 December 2018.
The stock, at market close on 29th March 2019, traded at $0.370, up by 2.778% during the day’s trade, with a market capitalisation of $111.27 million. The stock has generated a negative year till date return of -42.86%.
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