AusCann Group Holdings Limited (ASX: AC8) had made an announcement of the acquisition of Research and Development Facility with the help of press release. As per the press release dated January 25, 2019, the company stated that they have wrapped up the Research & Development facility acquisition in Perth, Western Australia. The issued release state that the facility would be aiming towards the company’s cannabinoid pharmaceutical product pipeline which would provide the help related to the development of innovative formulations as well as dose forms. The company had also stated that site establishment happens to be a strategic move for the company and represents a crucial component of the development plans of AusCann Group Holdings Limited.
The release issued by the company had stated that the research and development activities provide the support to the products of AusCann Group in terms of the quality. The company stated that it is focused on the patient-centered innovation and it would be working towards goals related to improving the health outcomes as well as which would build the company value. We would now see what AusCann Group Holdings Limited’s management has to say about the acquisition which has been mentioned above. The top management of AusCann Group Holdings Limited reflected positive views for the acquisition. It stated that the acquisition happens to be a major step for the company and, as a result, it would support the company in building the state of the art, fully integrated facility for the medicinal cannabis. The management of the company stated that 2019 would be an important year for the company as it has plans to roll out hard-shell cannabinoid capsules which would be catering to the stability and consistency of dose needed. The release also contained information related to the purchase price which was involved in the acquisition.
The company stated that the research and development facility involved purchase price amounting to $5.25 million and there are expectations that the company would be deploying additional funds of up to $6 million moving forward. We would now be looking at today’s performance of the company’s stock as well as how the stock of AusCann Group Holdings Limited has performed in the past few months.
On January 25, 2019, the company’s stock price closed in green as the stock price closed at A$0.655 per share which implies the rise of A$0.020 per share or 3.15%. The market capitalization of AusCann Group Holdings Limited stood at $196.27 million. The stock price of the company is trading towards the lower levels. Talking about the past performance, the company’s stock has given -38.35% return in the span of six months. In the time frame of previous three months, the stock had delivered the return of -15.33%. However, the company’s stock has posted the returns of 23.30% in the span of previous one month. As per Australian Securities Exchange of ASX, the earnings per share (or EPS) of AusCann Group Holdings Limited stood at A$-0.028.
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