Changing winds for Pot Stocks - AC8, CAN, CGB

Changing winds for Pot Stocks - AC8, CAN, CGB

Cannabis is one of the most sought-after herbs worldwide. The federal government’s Office of Drug Control (ODC) has issued an ever-increasing number of licences that permit companies to develop cannabis for commercial purposes, cultivate cannabis for research, and produce cannabis-based formulations. The Therapeutic Goods Administration (TGA) regulates who can utilise medical cannabis in Australia, under two special access schemes: One scheme, SAS A, is for palliative care while the other, SAS B, is for unapproved formulations.

Pot stocks in Australia are on the brink of a green rush. Even though the cannabis sector is in its growing phase, Australian pot stocks have already started to rise actively due to a patient base that is proliferating, and a legislative landscape that is beginning to liberalise steadily.

Also, the government gave a go-ahead to marijuana exports last year and opened the growing global market to Australian cannabis companies. In the meantime, several clinical studies were initiated to test the impact of medicinal cannabis on a range of diseases such as multiple sclerosis, epilepsy, insomnia, and autism.

The medicinal cannabis market is expected to grow globally in upcoming years:

In this article, we are discussing three ASX listed pot stock - AC8, CAN, CGB - and their recent activities.

AusCann Group Holdings Limited (ASX: AC8)

An Australian-based pharmaceutical company, AusCann Group Holdings Limited focuses on the advancement, manufacturing, and distribution of medicines based on cannabinoid across Australia as well as in the international markets. The company is changing the way cannabis is dispensed for the medicinal purpose by producing standardised dose-controlled therapeutic formulations of cannabinoids and clinical evidence available to physicians, patients, and health care providers.

AusCann allows physicians to cure their patients with a trustworthy, standardised and stable pharmaceutical product, observe treatment results as well as modify medication algorithms using a product portfolio.

AusCann has shown steady growth in the Australian market, and the use of cannabis for medicinal purposes is gaining significant momentum.

Appointment of Board

According to an announcement on 20 December 2019, AusCann, as part of the Board renewal process revealed during late-October 2019, has appointed Mr Max Johnston and Mrs Krista Bates as Non-Executive Directors of the company. Mr Johnston would also become AusCann Group’s Chairman effective from Interim Chairman’s (Hon. Cheryl Edwardes AM) exit on 19 January 2020.

AusCann’s hard-shell capsules are under clinical evaluation

AusCann Group released its proprietary cannabinoid-based hard-shell capsules for clinical assessment after completion of manufacturing and testing. With the aim of providing valuable exposure information related to the dose selection, the company is working to develop a short, commercially focused clinical evaluation. The hard-shell capsules of AusCann are a unique presentation for cannabinoid derived medicines. The company would update the market, following the commencement of the clinical evaluation.

Key highlights related to the clinical evaluation are:

ü Standardised validated tests were used for evaluating solid shell capsules within the pharmaceutical industry for the confirmation of the quality of the formulation before the availability in the market;

ü After the testing of hard-shell capsules, it was found that all applicable pre-defined standards set by relevant International Pharmacopoeial standards, Therapeutic Goods Administration (TGA) and AusCann’s procedures related to quality and control, were met by the capsules;

ü Following positive results from the clinical evaluation, AusCann would progress with an augmented path for the commercialisation of hard-shell capsules and would supply the capsules to physicians;

AusCann aims to make solid shell capsules accessible to Australian patients during H1 CY2020.

Stock information

AC8’s market capitalisation stands at around $88.77 million, with nearly 317.05 million shares outstanding. The stock closed at $0.270 on 31 December 2019, a decline of 3.571%. The AusCann’s stock has 52 weeks high and low price at $0.790 and $0.170, respectively.

Cann Group Limited (ASX: CAN)

An ASX-listed cannabis company, Cann Group Limited is focused on building a global business focused on breeding, cultivation and production of therapeutic cannabis for sale across Australia. Cann has well-established cultivation facilities in Melbourne and is determined to offer access to cannabis for medicinal purpose for patients in Australia. The company has executed collaboration agreements for enabling it to establish a prominent position in plant breeding, genetics, extraction, assessment and manufacture techniques necessary to facilitate the supply of medicinal cannabis for various diseases as well as medical conditions.

Issue of fully paid ordinary shares

On 24 December 2019, Cann group announced that it had issued 550,278 fully paid ordinary shares through a placement to Commonwealth Scientific and Industrial Research Organisation, as settlement of an invoice, under Part 6D.2 of the Corporations Act, for services rendered without disclosure to the investor.

CAN and IDT to Produce Commercial Medicinal Cannabis Product

ü According to an ASX announcement on 19 December 2019, Cann Group and IDT Australia Limited (ASX: IDT) revealed that the first commercial medicinal cannabis product of Cann Group has been packed by the IDT under current good manufacturing practice conditions and would undertake testing for confirmation of the stability;

ü The product release is awaited in the first quarter of the calendar year 2020. Both companies have a contract in place under which, IDT would offer current good manufacturing practice (cGMP) manufacturing services and support for the conversion of medicinal cannabis into cGMP grade Active Pharmaceutical Ingredients (API) and drug formulations for Australian patients, as well as global markets;

ü Medicinal cannabis (dried flower) has been packed into 10g bottles in licensed cGMP manufacturing facilities of IDT and data from the stability testing would be available at the end of January. Primarily, the first commercial medicinal cannabis formulation would be used for domestic requirements in Australia with Cann Group continuously developing the export pathways;

ü Recently, Cann Group completed the first export of packaged medicinal cannabis dry flower grown in Australia to a Canadian player - Aurora Cannabis Inc.

Stock information

CAN’s market capitalisation stands at around $96.13 million, with nearly 142.42 million shares outstanding. The CAN stock closed at $0.630 on 31 December 2019, a decline of 6.667%. CAN’s stock has 52 weeks high and low price at $2.570 and $0.375, respectively.

Cann Global Limited (ASX: CGB)

Cann Global Limited is a leading player in the medical cannabis and hemp industries. The main aim of the company is to grow and cultivate hemp in a legal manner for the research and development of medicinal cannabis products. Cann Global has three divisions: Medical Cannabis Research, Medical Cannabis, and All Natural Foods.

Strategic Partnership with Koegas Medicinal Herbs

The Board of Cann Global unveiled on 19 December 2019 that the company has entered into a Heads of Agreement (HOA) with Koegas Medicinal Herbs to establish a joint venture for production and distribution of medicinal Cannabis in Africa, including local South African medicinal cannabis applications. This joint venture (JV) would be entered into via Cann Global’s subsidiary, Cann Global South Africa (CGSA).

Stock information

CGB’s market capitalisation stands at around $44.41 million, with nearly 3.17 billion shares outstanding. The CGB stock closed at $0.014 on 31 December 2019, in line with the previous day’s closing price. CGB’s stock has 52 weeks high and low price at $0.051 and $0.013, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

In this article, we are discussing three ASX listed pot stock - AC8, CAN, CGB - and their recent activities.

AusCann Group Holdings Limited (ASX: AC8)

An Australian-based pharmaceutical company, AusCann Group Holdings Limited focuses on the advancement, manufacturing, and distribution of medicines based on cannabinoid across Australia as well as in the international markets. The company is changing the way cannabis is dispensed for the medicinal purpose by producing standardised dose-controlled therapeutic formulations of cannabinoids and clinical evidence available to physicians, patients, and health care providers.

AusCann allows physicians to cure their patients with a trustworthy, standardised and stable pharmaceutical product, observe treatment results as well as modify medication algorithms using a product portfolio.

AusCann has shown steady growth in the Australian market, and the use of cannabis for medicinal purposes is gaining significant momentum.

Appointment of Board

According to an announcement on 20 December 2019, AusCann, as part of the Board renewal process revealed during late-October 2019, has appointed Mr Max Johnston and Mrs Krista Bates as Non-Executive Directors of the company. Mr Johnston would also become AusCann Group’s Chairman effective from Interim Chairman’s (Hon. Cheryl Edwardes AM) exit on 19 January 2020.

AusCann’s hard-shell capsules are under clinical evaluation

AusCann Group released its proprietary cannabinoid-based hard-shell capsules for clinical assessment after completion of manufacturing and testing. With the aim of providing valuable exposure information related to the dose selection, the company is working to develop a short, commercially focused clinical evaluation. The hard-shell capsules of AusCann are a unique presentation for cannabinoid derived medicines. The company would update the market, following the commencement of the clinical evaluation.

Key highlights related to the clinical evaluation are:

ü Standardised validated tests were used for evaluating solid shell capsules within the pharmaceutical industry for the confirmation of the quality of the formulation before the availability in the market;

ü After the testing of hard-shell capsules, it was found that all applicable pre-defined standards set by relevant International Pharmacopoeial standards, Therapeutic Goods Administration (TGA) and AusCann’s procedures related to quality and control, were met by the capsules;

ü Following positive results from the clinical evaluation, AusCann would progress with an augmented path for the commercialisation of hard-shell capsules and would supply the capsules to physicians;

AusCann aims to make solid shell capsules accessible to Australian patients during H1 CY2020.

Stock information

AC8’s market capitalisation stands at around $88.77 million, with nearly 317.05 million shares outstanding. The stock closed at $0.270 on 31 December 2019, a decline of 3.571%. The AusCann’s stock has 52 weeks high and low price at $0.790 and $0.170, respectively.

Cann Group Limited (ASX: CAN)

An ASX-listed cannabis company, Cann Group Limited is focused on building a global business focused on breeding, cultivation and production of therapeutic cannabis for sale across Australia. Cann has well-established cultivation facilities in Melbourne and is determined to offer access to cannabis for medicinal purpose for patients in Australia. The company has executed collaboration agreements for enabling it to establish a prominent position in plant breeding, genetics, extraction, assessment and manufacture techniques necessary to facilitate the supply of medicinal cannabis for various diseases as well as medical conditions.

Issue of fully paid ordinary shares

On 24 December 2019, Cann group announced that it had issued 550,278 fully paid ordinary shares through a placement to Commonwealth Scientific and Industrial Research Organisation, as settlement of an invoice, under Part 6D.2 of the Corporations Act, for services rendered without disclosure to the investor.

CAN and IDT to Produce Commercial Medicinal Cannabis Product

ü According to an ASX announcement on 19 December 2019, Cann Group and IDT Australia Limited (ASX: IDT) revealed that the first commercial medicinal cannabis product of Cann Group has been packed by the IDT under current good manufacturing practice conditions and would undertake testing for confirmation of the stability;

ü The product release is awaited in the first quarter of the calendar year 2020. Both companies have a contract in place under which, IDT would offer current good manufacturing practice (cGMP) manufacturing services and support for the conversion of medicinal cannabis into cGMP grade Active Pharmaceutical Ingredients (API) and drug formulations for Australian patients, as well as global markets;

ü Medicinal cannabis (dried flower) has been packed into 10g bottles in licensed cGMP manufacturing facilities of IDT and data from the stability testing would be available at the end of January. Primarily, the first commercial medicinal cannabis formulation would be used for domestic requirements in Australia with Cann Group continuously developing the export pathways;

ü Recently, Cann Group completed the first export of packaged medicinal cannabis dry flower grown in Australia to a Canadian player - Aurora Cannabis Inc.

Stock information

CAN’s market capitalisation stands at around $96.13 million, with nearly 142.42 million shares outstanding. The CAN stock closed at $0.630 on 31 December 2019, a decline of 6.667%. CAN’s stock has 52 weeks high and low price at $2.570 and $0.375, respectively.

Cann Global Limited (ASX: CGB)

Cann Global Limited is a leading player in the medical cannabis and hemp industries. The main aim of the company is to grow and cultivate hemp in a legal manner for the research and development of medicinal cannabis products. Cann Global has three divisions: Medical Cannabis Research, Medical Cannabis, and All Natural Foods.

Strategic Partnership with Koegas Medicinal Herbs

The Board of Cann Global unveiled on 19 December 2019 that the company has entered into a Heads of Agreement (HOA) with Koegas Medicinal Herbs to establish a joint venture for production and distribution of medicinal Cannabis in Africa, including local South African medicinal cannabis applications. This joint venture (JV) would be entered into via Cann Global’s subsidiary, Cann Global South Africa (CGSA).

Stock information

CGB’s market capitalisation stands at around $44.41 million, with nearly 3.17 billion shares outstanding. The CGB stock closed at $0.014 on 31 December 2019, in line with the previous day’s closing price. CGB’s stock has 52 weeks high and low price at $0.051 and $0.013, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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