Any Smoke For These Pot Stocks - AGH, THC, AC8, CAN, CGB, MDC

  • Nov 18, 2019 AEDT
  • Team Kalkine
Any Smoke For These Pot Stocks - AGH, THC, AC8, CAN, CGB, MDC

Lately, cannabis stocks in the US have come under pressure, following the rising death toll from vaping that reached 42 so far in 2019, according to media reports. Meanwhile, in Canada, Canopy Growth unveiled that returned cannabis oil products resulted in a loss of USD 20.3 million, following the rejection from retailers. Canopy is the largest cannabis company in terms of market value, globally.

Meanwhile, in Australia, cannabis companies are more focussed on developing medicinal cannabis products. However, the capital of Australia – Canberra has legislation, allowing the use of cannabis for recreational purpose to some extent.

In this article, we are discussing six stocks from the Australian cannabis industry.

Althea Group Holdings Limited (ASX: AGH)

Surpassing Milestones

On 15 November 2019, Althea reported on the uptake of its medicinal cannabis products in Australia. AGH added 486 new patients in October while surpassing the 3k patient mark in the country.

October witnessed a record number of patient additions at 486 compared to the previous record of 462 patients in the previous month. At the end of October, the company had prescribed a total of 2,815 patients.

AGH surpassed the 3k patient milestone in Australia in November this year, leveraging its 375 Australian Healthcare Professionals (HCPs). It also remains on track to achieve an ambitious target of 4k patients by the end of this year.

Althea has a focus on medical education along with its proprietary technology platform Althea Concierge, which is certainly working out considering the prolonged patient uptake. In addition, the growth is also augmented by increasing TGA SAS Category B applications, which added 3,594 approvals in October, marking the highest rate of growth.

Moreover, the company is expecting sales from its recently announced highly concentrated full spectrum cannabidiol (CBD) product to improve patient numbers in the short, medium and long term.

On 18 November 2019 (AEST 01:01 PM), the AGH stock was trading at $0.455, down by 2.151% relative to the previous close.

THC Global Group Limited (ASX: THC)

Largest Extraction Capacity in Australia

Recently, the company announced that manufacturing permit was received for Southport Facility. The permit complements the company to receive medicinal cannabis from domestic cultivators with permits and licences.

It also enables the company to supply medicinal cannabis from its own cultivation facilities and provides the capability to commence production of Australian cannabis medicines immediately.

This development aids the company with the largest extraction capacity for medicinal cannabis in the country, with the prowess to support a minimum of 250k Australian patients and excess capacity for global exports.

The facility is capable of producing packaged and bulk medicinal cannabis. Moreover, it is anticipated that production validation would be completed in December with a commercial launch expected in early 2020.

September Quarter

By the end of September quarter on 30 September 2019, the company had cash and cash equivalents of $4.02 million. In October, the repayment of an employee loan of $1.1 million was recognised by THC.

During the Quarter,

  • THC secured Schedule 8 Controlled Substance and Schedule 4 Prescription Medicine Manufacturing and Wholesale Licences from Queensland’s Department of Health for its Southport and Bundy facilities.
  • Its Canadian hydroponics equipment wholesaling and retailing division delivered unaudited YTD revenue of over $3 million.

On 18 November 2019 (AEST 01:09 PM), the THC stock was trading at $0.410, up by 1.235% relative to the previous close.

AusCann Group Holdings Limited (ASX: AC8)

Board Updates

In November 2019, the company appointed Mr Christopher Mews, a nominee of the largest shareholder, as a Non-Executive Director.

Dr Paul MacLeman resigned as an Executive Director of the company, who had joined as part of the CEO leadership transition in late 2018, which is now completed with Mr Ido Kanyon (CEO) in full charge.

September Quarter

In the September 2019 quarter, the company progressed with the developments in its hard-shell capsules, new product development facility, and supply chain optimisation. AusCann’s hard-shell medicines are designed to provide physicians with a stable product to treat chronic pain.

The company has been working closely with its manufacturing partner, PCI Pharma Services, regarding production and quality testing. It remains on track to deliver the capsules for clinical trials by the end of 2019.

In Perth, the company is constructing a product development site that has reached an advanced stage. The project remains within the budget and on schedule with practical completion expected by the end of 2019.

In addition, the company revised agreement with Tasmanian Alkaloids, consistent with its strategy to de-risk and provide geographical diversity in its supply chain with a core number of pharmaceutical GMP suppliers.

On 18 November 2019 (AEST 01:18 PM), the AC8 stock was trading at $0.255, down by 3.774% relative to the previous close.

Cann Group Limited (ASX: CAN)

Commercialisation

In early November, it was reported that the company was launching imported medicinal cannabis products for patients falling under the Special Access Scheme. A distribution agreement was executed with a retail and hospital supplier in Australia – Symbion Pty Ltd.

The company has also made significant progress in the product manufacturing validation program with IDT Australia Ltd (ASX: IDT) and expects to launch domestically manufactured products in Q1 2020.

It was also reported that the first shipment of high THC oil formulations was received, and permits are in place to import and supply additional five products being supplied by Aurora, which is a cornerstone investor in Cann. The company is working with a network of Australian compounding pharmacies in an effort to develop the capacity to manufacture compounded products, formulated for individual patients.

On 18 November 2019 (AEST 01:21 PM), the CAN stock was trading at $0.885, down 10.606% relative to the last close.

Cann Global Limited (ASX: CGB)

New Launches

Recently, the company treated its Australian and Asian consumers with the launch of two new and nutritious ‘Black Label’ Hemp Seed Oil and Hemp Seed mixes. These products were produced by the company’s T12 food division.

  • The division is continuing to progress with its tradition to complement mixes (healthy, nutritious, and vitamin-packed) to its stable of top-selling premium grade Hemp Seed products;
  • The segment boosted the line up with the roll out of products including Flax Seed, Chia and Manuka Honey;
  • In addition, the segment was preparing the company’s VitaHemp Premium Hemp Seed Oil capsules for the wholesale outlets of Costco in the country.

The company notified that products have successfully passed standard requirements for the delivery, and they could be accessed from Costco’s nation-wide store network.

On 18 November 2019 (AEST 01:25 PM), the CGB stock was trading at $0.017, with on change relative to the last close.

Medlab Clinical Ltd (ASX: MDC)

October Update

Recently, the company announced that a record 846 bottles of its products were sold in the month of October, which included NanaBis™ and NanaBidial™.

The company’s lead pain drug candidate – NanaBis™ witnessed an unprecedented increase in demand. The sales were achieved via Special Access Scheme, and the sharp increase in demand reflects two emerging factors differentiating Medlab products;

  • NanaBis™ status with clinical trials at Royal North Shore Hospital;
  • Allowing doctors and patients to take part through TGA approved Observational Study, which has been designed in partnership with the US Food and Drug Administration.

The increase in demand required a rescaling of the production process, and the company has around 4k units of Nanabis™ in production to meet short term needs.

Meanwhile, Nanabis™ continues to achieve very positive results through its prescription via the SAS and Observational Study. Recent case studies have reported:

  • Reduction in medications taken.
  • Improvement in quality of life, including improved sleep, increase in appetite, decrease in anxiety and pain reduction.

On 18 November 2019 (AEST 01:30 PM), the MDC stock was trading at $0.375, up by 1.351% relative to the previous close.


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