Latest In The Emerging Cannabis Space- THC, AGH, CAN, CGB

Cannabis Industry

The Australian cannabis industry is the newest and the most dynamic sector after the legalization of cannabis for medicinal as well as recreational purposes. The cannabis industry refers to the activities and all the professionals who are involved in the production, transport, consumption and sale of medical or recreational cannabis, hemp and all the products derived from them.

In Australia, the Office of Drug Control issued 69 licenses for the production, cultivation and manufacturing of medical cannabis. This include-

  • Licenses for the cultivation of marijuana for medicinal use (24)
  • Licenses for the cultivation of cannabis for research (16)
  • Licenses for the manufacturing of medicinal cannabis products (23)

The cannabis industry is growing tremendously after the legalization of marijuana, and the companies are performing research and development to identify some new medicinal uses of hemp products. In Australia, there are various companies which have started manufacturing, production and export of hemp and related products after legalization of their medicinal usage. Clinical research is undergoing for identification of the use of the constituents present in the hemp plant. The main active chemical constituents in the hemp plant are cannabinoids which majorly comprised of Cannabidiol (CBD) and tetrahydrocannabinol (THC). Most common medicinal use of cannabis is in reducing the chronic pain and muscle spasm, and there is research going on for identification of other beneficial treatments related to marijuana.

Let’s zoom the lens on recent activities of four cannabis stocks

THC Global Group Limited (ASX: THC)

One of Australia’s leading medicinal cannabis companies, THC Global Group Limited (ASX: THC) has all three key cannabis licenses- a cannabis research license, one license for its cultivation and two licenses for manufacturing. The company’s Southport manufacturing facility is one of the most extensive pharmaceutical bio-floral extraction facilities in Southern Hemisphere; in addition, THC global also operates in Canada.

Manufacturing Permit for Southport Facility-

  • According to one recent announcement the company unveiled about the grant of manufacture permit from the Australian Office of Drug Control for its manufacturing facility in Southport.
  • The company will immediately start production of packaged and bulk medicinal cannabis.
  • With this permit, the Southport facility of the company will receive medicinal cannabis plant material from licensed and permitted growers.
  • After this facility the company has the largest extraction capacity for cannabis and is capable of supporting up to 250,000 patients in Australia.

Stock performance-

The company’s stock closed at $0.420 on 13 November 2019, up by 5%, with a market cap of nearly $54.67 million. The stock has a 52-week high price of $0.630 and a 52 weeks low price of $0.305. The stock has approximately $ 136.67 million shares trading on ASX.

Althea Group Holdings Limited (ASX: AGH)

An ASX listed cannabis company, Althea Group Holdings Limited (ASX: AGH), is headquartered in Australia. It is engaged in production, supply and export of pharmaceutical-grade medicinal cannabis in the Australian market. The company’s medicinal cannabis products help patients who are suffering from debilitating conditions. Althea is planning to expand in the European and Asian cannabis markets.

Supply of products for clinical trials-

According to one recent announcement, Althea unveiled that it has signed an agreement with NHMRC-funded Australian Centre and will supply cannabis for Cannabinoid Clinical and Research Excellence. After this, the company will become one of the product suppliers for clinical trials. This clinical trial will be to explore the therapeutic effect of cannabis in advanced cancer symptoms. With this agreement, the company would supply two cannabis medicine for clinical research.

German market entry-

  • Althea has signed a Memorandum of Understanding (‘MOU’) with nimbus health GmbH, which is a Germany based leading wholesale pharmaceutical license holder, for distribution and sale of its medicinal cannabis product in Germany.
  • The company will continue its expansion into European markets after entering in the German cannabis market.
  • According to this agreement, Nimbus will distribute and sell pharmaceutical-grade medicinal products of cannabis under the brand name of Althea in the German cannabis market.
  • In Germany health insurers typically cover the total fee for medicinal cannabis; hence this market is unique, and there is no cost to patients for cannabis-related medical treatment.
  • Both the companies will involve in the establishment of yearly sales targets, marketing and marketing strategies.
  • The shipment of its medicinal cannabis products in the German market will be in the first half of 2020.

Stock performance-

The company’s stock settled at $0.475 on 13 November 2019 with a market cap of nearly $110.82 million. The stock has a 52 weeks high price of $1.445 and a 52 weeks low price of $0.175. The stock has approximately 233.31 million shares trading on ASX.  The stock has delivered a return of 79.25% on year to date basis.

Cann Group Limited (ASX: CAN)

An ASX listed medical cannabis company Cann Group Limited (ASX: CAN) is engaged in breeding, cultivating and manufacturing the medicinal cannabis for sale and use in the Australian market. The company was the first Australian cannabis company which has granted license and permit from Federal Government for the cultivation of medicinal cannabis in Australia and has the license for medicinal cannabis research and its cultivation, and both licenses were granted to the company in 2017.

In a recent ASX update on 7 November 2019 the company announced that it had signed an agreement for distribution with Symbion Pty Ltd, which is a supplier of healthcare products and services. Symbion supplies services to 1300 hospitals and more than 4000 retail pharmacies in Australia.

The products are under the validation & stability testing, and the company expects to launch its first locally sourced and manufactured formulations in the first quarter of FY2020. The company is working in advancing the cannabis product manufacturing capabilities with IDT Australia.

The company announced that its annual general meeting would be held on Friday, 29 November 2019 in Melbourne, Australia. The main agenda of this meeting are-

  • Discussion of Financial Statements and Reports
  • Adoption of Remuneration Report
  • Re-election of Director
  • Ratification of prior issue of Shares
  • Approval of Long-Term Incentive Plan
  • Approval of 10% placement capacity for 12 months

Stock performance-

The company’s stock closed at $1.015 on 13 November 2019, with a market cap of nearly $147.55 million. The stock has a 52 weeks high price of $2.750 and a 52 weeks low price of $0.950. The stock has approximately 141.87 million shares trading on ASX.

 

Cann Global Limited (ASX: CGB)

An Australian medical cannabis company, Cann Global Limited (ASX: CGB) which was formerly known as Queensland Bauxite Limited (ASX: QBL) is listed on ASX since 14 January 2008. The company is engaged in the production of cannabis-related preparations.

T12 Food division update

The company’s food management team at T12 has announced about its new and nutritious ‘Black Label’ Hemp Seed Oil and Hemp Seed mix product range for consumers in Australia and the Asian region.

Source: Company’s Report

Costco delivery update

  • The new capsules of VitaHemp Premium Hemp Seed Oil of the company are now ready to be delivered in Australian Costco Wholesale Stores.
  • The products have passed all the standards which are required for sale or delivery to Costco.
  • The capsules are now available in the extensive store network of Costco in Australia for purchase.

Stock performance-

The company’s stock closed at $0.020 on 13 November 2019, with a market cap of nearly $60.08 million. The stock has a 52-week high price of $0.051 and a 52-week low price of $0.019. The stock has approximately $3.16 billion shares trading on ASX.


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