Lens through ASX Cannabis Stocks For 2020

Lens through ASX Cannabis Stocks For 2020

The cannabis industry is one of the most debated on a global scale, and significant progress has been seen in this industry worldwide. Medicinal cannabis products manufactured in Australia must be created under a Good Manufacturing Practice (GMP) license. The Australian Government, through the Office of Drug Control and the Therapeutic Goods Administration (TGA), regulates medicinal cannabis in Australia.

Pot Stocks or Cannabis stocks have gained a lot of popularity in Australia, given that medicinal cannabis was legalised in Australia in February 2016. Various companies have quickly progressed with the various clinical trials of the related medicinal products in order to take advantage of the shortage in supply and contribute towards the treatment of several types of medical conditions.

There are many ways one can invest in pot stocks:

  • Global cannabis stocks- Few of the largest players in the global cannabis market are listed on stock exchanges in countries such as the United States of America or Canada. With broker services, one can get access to these stocks;
  • Cannabis stocks listed in Australia- One way to invest in cannabis stocks is to buy stocks of cannabis companies or companies with cannabis exposure that are listed on the Australian Securities Exchange (ASX);
  • Exchange Traded Funds (ETFs) focussing on Cannabis- These often track an index of stocks. Approximately 6 cannabis ETFs are listed in the US.

In this article we will discussing about four ASX listed cannabis stocks and their recent activities.

Cann Group Limited (ASX: CAN)

Cann Group Limited is engaged in the cultivation of cannabis for research and medicinal uses, and it also manufactures medicinal cannabis products.

CAN and IDT Medical Cannabis Ready for Commercial Release

Cann Group Limited and IDT Australia Limited has announced that the first commercial medicinal cannabis product to be produced from Cann Group’s Australian-based cultivation operations has been packed by IDT under cGMP conditions and will undergo stability testing ahead of release in the first quarter of calendar year 2020.

  • Medicinal Cannabis Dried Flower has been packed into 10g bottles in IDT’s licensed cGMP manufacturing facilities;
  • Stability testing data is due to be available at the end of January 2020;
  • This will clear the way for commercial launch by Cann Group to Australian patients early in 2020. They can access the product under the Special Access Scheme (SAS)

The product will be used for Australian domestic requirements; however, the company continues to develop pathways for exports. Recently, the company finished its first export of Australian grown and packaged medicinal cannabis dry flower to Aurora Cannabis Inc. in Canada.

Source: Company’s Report

Stock Performance

The stock of CAN closed the day’s trading at $0.805 per share on 03 January 2020, up by 28.8% from its previous closing price. The company has a market capitalisation of $89.01 million as on 03 January 2020. The total outstanding shares of the company stood at 142.42 million. The stock has given a total return of -59.15% and -69.66% in the time period of 3 months and 6 months, respectively.

AusCann Group Holdings Limited (ASX: AC8)

AusCann Group Holdings Limited is an Australia-based pharmaceuticals company engaged in the business of cultivation, manufacture and supply of cannabinoid-based medicines within Australia and internationally.

The Company Completes Board Renewal Process

The company has appointed Mr Max Johnston and Mrs Krista Bates as Non-Executive Directors of the company as part of the Board renewal process. Mr Max Johnston will also be appointed Chairman of the company after the departure of Interim Chairman Hon. Cheryl Edwardes AM on 19 January 2020. Mr Johnston is a highly regarded health care industry director with a wealth of executive and pharmaceutical experience. Mrs Krista Bates has over 18 years of expertise in the legal field and is currently a Partner at leading Western Australian law firm Lavan, specialising in Corporate law and is Head of Mining & Resources.

The Company Releases Hard-Shell Capsules to Clinical Evaluation

The company has completed testing and manufacturing of its proprietary cannabinoid-based capsules and made them available for evaluation. It is working to develop a commercially focused, short clinical evaluation process. The company is targeting to have the hard-shell capsules commercially available for physicians to prescribe in Australia during the first half of CY 2020.

Stock Performance

The stock of AC8 closed the day’s trading at $0.300 per share on 03 January 2020 with no change from its previous closing price. The company has a market capitalisation of $95.11 million as on 03 January 2020. The total outstanding shares of the company stood at 317.05 million. The stock has given a total return of -10.45% and -17.81% in the time period of 3 months and 6 months, 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 Limited has three divisions: Medical Cannabis Research, Medical Cannabis, and All-Natural Foods.

The Company Enters into a Strategic Partnership with Koegas

The company has entered into an agreement with Koegas Medicinal Herbs Ltd (Koegas), a South African company. This is intended to start a JV (in which the company will hold a 70% stake). This will spearhead medicinal Cannabis distribution and production in Africa. This includes medicinal cannabis applications in South Africa, in respect to four strategic locations in South Africa.

  • This new JV adds substantially to the current global network of CGB in Asia, Australia, Israel and North America in pursuit of the African markets as well;
  • The company considers Africa to be a potentially huge emerging market.

The Company Signs Exclusive Agreement for the IP rights

The company has signed an agreement to secure the rights to the IP of the medicinal cannabis formulations. These that have been used by Olivia Newton John in countering her recent health problem. With her holistic approach to her stage 4 metastatic breast cancer, Olivia credits these formulations in conjunction with her conventional therapies for her much-improved health condition.

Stock Performance

The stock of CGB closed the day’s trading at $0.015 per share on 03 January 2020, up by 7.143% from its previous closing price. The company has a market capitalisation of $44.41 million as on 03 January 2020. The total outstanding shares of the company stood at 3.17 billion. The company has given a total return of -48.15% and -51.72% in the time period of 3 months and 6 months, respectively.


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There is no one left untouched by the charm of the multibillion-dollar global boom in cannabis. Its glorious journey from a criminalized drug to being used in over 20 countries for treating medical conditions.

No wonder the cannabis stocks are on the edge of a green rush. Don’t miss out on the happenings in the cannabis sector and take advantage of the growth phase of this sector by subscribing to our report on Marijuana stocks in Australia.

Find out the drivers for the rise in cannabis stock rates Even though the cannabis sector is in its growing phase, Australian cannabis stocks have already started to rise actively due to a hastily increasing patient base, and a legislative landscape that is gradually beginning to liberalise.

Outreach and future of cannabis stocks As countries liberalise regulation for medical and recreational use of cannabis, it is predicted that the industry would grow sharply in upcoming years The global cannabis market stands currently at around $8 billion and it is expected that the hemp derived CBD market to hit approximately $22 billion by 2022. 

Key Players in the sector Althea Group Holdings Limited (ASX: AGH) and Cann Group Limited (ASX: CAN) are amongst the top players. Other Australia cannabis market players are- MGC Pharmaceuticals Ltd (ASX: MXC), Elixinol Global Limited (ASX: EXL), THC Global Group Limited (ASX: THC), AusCann Group Holdings Limited (ASX: AC8)

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