A significant progress has been seen in Cannabis industry at a global scale, a sector that has witnessed traction and speculation at the same time. Once, a topic of taboo, cannabis is one of the most debated topics worldwide currently.
Cannabis’ New Frontier-Cannabis 2.0
Canada stood as the first industrialised country and the second one in the world that has legalised cannabis for recreational purpose in October 2018. A year after Canada’s foray of legalising recreational cannabis/marijuana, Cannabis 2.0/Legalisation 2.0 kicked-off, which sanctions selling cannabis infused edibles, beverages, vape pens and extracts.
Canada's legalisation policy has widely been accepted and regarded as a conquest with $8 billion being generated from cannabis-related investment in just the first month post Cannabis2.0 legalisation, thus, providing a blueprint for other countries to follow. In view of this, Australian cannabis legalisation seems to be on the horizon.
Legalisation of Cannabis in Australia
In Australia, Narcotic Drugs Amendment Act provided a green signal to legally grow cannabis for medicinal use within Australia in February 2016, with a total of 69 licences issued for production, cultivation and manufacturing including-
- 24 licenses for the cultivation of cannabis for medicinal purpose
- 16 licenses for the cultivation of cannabis for research purpose
- 23 licences for the manufacturing of medicinal cannabis products
The overseas distribution of cannabis got legalised by the Government in January 2018.
Australian medicinal cannabis market is perhaps the most precipitously blooming sector globally which is presently valued at $17.7 million, and likely to generate $1.2 billion in the next 5 years. In fact, it is possible that it could be worth $3 billion by 2028. Australian Capital Territory (ACT), became the 1st ever Australian region to approve the new cannabis law legalising cannabis for recreational possession and cultivation, after raising a lot of eyebrows.
The Australian Capital - Canberra became Australia’s first city to legalise the cannabis recreational possession and cultivation in September 2019.
Although there are some conjectures and worries, it is for certain, that the Australian cannabis space is positioned well to grow and reap benefits in future.
Cannabis Players on ASX:
THC Global Limited (ASX: THC)
Operating under ‘Farm to Pharma’ pharmaceutical model, and holding all three key cannabis licences mentioned above, THC Global Limited has recently completed processing of first medicinal cannabis at the largest pharmaceutical bio-floral extraction facility in the Southern Hemisphere, the Southport Manufacturing Facility using the Company’s patented Australian high-CBD cannabis strain.
The product would be launched and marketed under THC Global’s Cannedo brand, a step representing a major milestone for the company as well the Australian industry. This plant-to bottle processing authenticates THC Global’s farm-to-pharma approach, laying the foundation for the company to scale up cultivation & extraction process in 2020.
THC Global Chief Executive Officer, Mr Ken Charteris, remarked:
THC Global is placed well in the flourishing cannabis space to reap benefits from the future of medicinal cannabis within Australia and globally.
Post the news THC’s shares soared 10% on an intraday basis while settling at 5.45% on 04 December 2019. Currently, the shares of the company are trading at $0.385, down 1.282% (at AEST 2:38 PM) as on 06 December 2019.
AusCann Group (ASX: AC8)
AusCann’s strategic implications is focused on global cannabis market developments. With the recent outbreak of lung injury and deaths linked with the use of vaping products including cannabis vape pens. AusCann while ditching producing products for inhalation, develops hard-shell capsules that offers a safer mode of administration to vaping or smoking.
With regards to various regulatory and compliance issues impacting the entire cannabis industry, AusCann is strictly follows the Therapeutic Good Administration (TGA) and the Office of Drug Control (ODC) guidelines and licences.
Defeating several impediments & challenges to market access for cannabinoid-based medicines including by lack of standardisation, medical acceptability and regulatory constraints, AusCann is focused on the value-additions to address investors unmet needs by delivering reliable, stable and standardised cannabinoid-based pharmaceutical products as well as produce clinical evidence to underpinning market access.
AusCann’s considerable R&D breakthrough was the fruitful conclusion of capsule product development. AusCann has clear road to market strategy underpinned by strong funding, the company is on the right track to achieve its goal of delivering consistent and stable dosage proprietary capsules.
AC8’s shares were trading flat at a price of $0.19 (2:52 PM), as on 06 December 2019.
CANN Group Limited (ASX: CAN)
CANN Group Limited is a fully integrated & globally competitive medicinal cannabis company with its in-house capabilities combined with strategic partnerships. It is all set to undertake industry-leading research & product development, cost-effective cultivation on a large scale, manufacturing of GMP grade medicinal products & sales & marketing to meet both Australian demand & valuable export opportunities.
Recent over-supply issues in Canada and some US states attributable delays in efficient distribution systems, have negatively impacted Cannabis stocks, particularly in Canada. As these issues surfaced, CANN’s strategic partner, Aurora Cannabis Inc, announced delaying the construction of its major expansion facilities.
These industry developments required, CANN group to reset its production expansion plans and revise the construction of its state-of-art Mildura Facility underwritten by an offtake agreement with Aurora that significantly impacted its share prices.
However, the company continues to focus on its long-term strategic goal, as well as continue to put together the building blocks to achieve those goals with a determination to attain valuable progress over next 12 months.
CAN’s shares were trading at $0.455, down 2.151%, as on 06 December 2019.
CANN Global Limited (ASX: CGB)
Cann Global, despite several substantial hurdles and challenges, including supply constraints, and an extended period of unfavourable weather conditions, achieved significant milestones in last one year and achieved $1.089 million in consolidated revenues prior to its relisting on ASX.
Cann Global is pursuing a strategy of diversification to flourish its business model by establishing an ecosystem of hemp seed farming suppliers. Within Australia, the company is building its production, manufacturing & product selling facility and on a global level by addressing head-on, existing challenges and hurdles confronting the global cannabis and hemp seed markets.
CGB’s shares were trading flat at $0.015 (at AEST 3:18 PM), as on 06 December 2019.
MGC Pharmaceuticals (ASX: MXC)
MGC Pharmaceuticals Ltd supplies phytocannabinoid derived medicines to patients across the globe. The company recently, received formal approval for the immediate distribution & prescription of CannEpil® (one of MGC’s Investigational Medicinal Product’s (IMP) to treat drug resistant epilepsy) in Ireland as recommended by the Health Products Regulatory Authority (HPRA).
Officially granted by the Irish Ministry of Health, CannEpil® is the first EU-GMP pharmaceutical grade, cannabinoid-based medicine authorised for prescription and sale under the Irish Government’s Medical Cannabis Access Programme, and it is anticipated that this move would accelerate the approval process in the key EU markets.
Financial year 2019 has been outstanding in delivering real operational progress for MGC and achieving key milestones on its ‘Seed to Pharmacy’ strategy of establishing an international bio-pharma company targeting production & development of phytocannabinoid derived medicines.
MXC’s shares were trading flat at $0.033 (at AEST 3:12 PM) as on 06 December 2019.
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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)