Latest Announcements On 3 Cannabis Players:  MRG, AGH And SUD

  • Jun 06, 2019 AEST
  • Team Kalkine
Latest Announcements On 3 Cannabis Players:  MRG, AGH And SUD

Cannabis industry is one of the infant industries across the globe and the reason for its slow growth is cited towards tough government regulations. Though, the scenario is slowly changing, and the government and other authorities are becoming more open towards the restricted use of cannabis for the medical purposes only.

Let’s have a look at some of these companies with their recent updates regarding the cannabis related operations as follows:

Murray River Organics Group Limited

Murray River Organics Group Limited (ASX: MRG) is an ASX listed consumer staples sector, with interest in the cannabis industry. This Australian based company is the manufacturer and seller of certified organic and natural food products.

The company has large scale sustainable processes to produce an innovative range of high-quality Australian food. As of November 2016, the company owned 4,400 acres of certified organic farmland, organic processing facility and packaging facility.

This vertical integration of the product lines with product innovation and marketing operations, enables the company to cater to the global client base. Some of the brands of the company are Premium Australian Clusters, Nutritious foods, Pacific Organics, Gobble additionally with private label offerings.

On 5th June 2019, the company announced that it has received the authority to grow ‘low-THC cannabis’ on its certified organic Nangiloc property.

As previously announced by the company, project Magnum provides for the development of 2,300 Ha arable area on MRG’S Nangiloc farm. The company will commence phase 1 with the planting of high demand annual crops in FY20.

Key personnel’s statement

Valentina Tripp, Chief Executive of the company, said this approval to grow low-THC cannabis is a massive step for the company, potentially delivering new vertical to complement the existing dried vine fruit business.

She further added that the entire hemp industry is at an infancy stage, and the company has the potential to meet this growing demand, both domestically and internationally.

Valentina Tripp also said the growing of organic hemp on the company’s farms is aligned with the strategy with producing highly nutritious, organic crops.

Stock Performance

The company has a market capitalisation of A$33.4 million, and the stock had touched a 52-week high and low of A$0.14 and A$0.072 respectively. The stock of the company is currently trading at A$0.080 (as on 6 June 2019, 1: 53 PM AEST), up by 3.896%. The last one-year return of the stock is negative 19.79%, and the YTD return stands at a negative 2.53%.

Althea Group Holdings Limited

Althea Group Holdings Limited (ASX: AGH) is an ASX listed healthcare company which owns the licence to produce, supply and export pharmaceutical grade medicinal cannabis. It also helps patients and healthcare professionals in going through the medicinal cannabis treatment pathways by offering a wide range of education, access and management services.

Based in Melbourne, Australia, the company is currently operating in Australia and the United Kingdom and wants to expand to Asia and Europe. It offers cannabis oil under the brand names Rideau, Jasper, Capilano etc.

On 5th June 2019, the company announced that Agriculture Victoria, which is a government authority has provided a license to Althea Group’s wholly owned subsidiary Althea Company Pty Ltd for low-THC cannabis for the sole aim of commercial purposes relating to non-therapeutic use.

The company has also signed an agreement with Tissue Culture Australia, whereby Tissue Culture will help the company in developing proprietary tissue culture protocols for cannabis plants. Tissue Culture is one of Australia’s leading tissue culture laboratory with a growth of 3.5 million tissue cultures annually.

Key Personnels’ statement

Daniel Mansfield, Director of the company, said, that the licence granted by Agriculture Victoria would help the company in gaining real-life experience with cannabis vegetation in an atmosphere of tissue culture laboratory, instantly.

Joshua Fegan, CEO of the company, stated that the company thinks, the low-THC cannabis strains usage as an early opportunity for the experts to increase the knowledge of the tissue culture protocols for the cannabis plant.

Stock Performance

The company has a market capitalisation of A$136.22 million, and the stock had touched a 52-week high and low of A$0.77 and A$0.175 respectively. The stock of the company is down by 3.731% and is trading at A$0.645 (as on 6 June 2019, 2:04 PM AEST). The last three-month return of the stock is 69.62%, and the YTD return stands at 152.83%.

SUDA Pharmaceuticals Ltd

SUDA Pharmaceuticals Ltd (ASX: SUD) is an ASX listed drug delivery company headquartered in Perth, Western Australia. Currently, the company is focusing on low-risk oral sprays using its patented technology OroMist®. There are many benefits of administering drugs through oral mucosa like reduced side effects and faster response.

Other products in the pipeline of the company are ZolpiMist™, which is an oral spray of zolpidem for insomnia. Other products include oral sprays for migraine, chemotherapy-induced nausea and vomiting, headache etc.

On 5th June 2019, the company announced that it has signed a binding term sheet with Cann Pharmaceutical Australia Limited, which is a subsidiary of Israeli group Better Holdings, for the exclusive license for developing and supplying an oral spray of pharmaceutical-grade cannabinoid derivatives.

Cann Pharmaceutical is a phyto-cannabinoid biopharmaceutical company has an interest in developing a novel oral spray of pharmaceutical-grade cannabinoid. Also, Cann Pharmaceutical is fully equipped with the license in Australia for production, sales and export of the highest quality MGC.

Binding Term Sheet

Under the contract, Cann Pharmaceutical will take responsibility for the regulatory approvals of the product on a global basis and will also fund the development. The initial development cost is expected to be $184,400 with other development costs to be determined later. Other key terms under the binding term sheet are as follows:

  • $100,000 due within 30 days of signing the definitive agreement.
  • $50,000 after the completion of Phase 4.
  • $50,000 after the receipt of the final report.
  • $650,000 as a development milestone fee.
  • $650,000 as commercial milestone payments.
  • 10% of net sales as Royalty payments.

On 5 June 2019, the company also stated commencement of trading of renounceable pro rata issue notified on 3rd June 2019, under the ASX ticker SUDRA.

Also, here are some of the other ASX listed cannabis stocks.

Stock Performance

The company has a market capitalisation of A$12.91 million, and the stock had touched a 52-week high and low of A$0.011 and A$0.003 respectively. The stock of the company is currently trading flat at A$0.005 (as on 6 June 2019, 2:18 PM AEST). The last one-year return of the stock is negative 47.81%, and the YTD return stands at negative 19.03%.


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