Update on 3 Healthcare Stocks – MMJ, MXC and BOT

MMJ Group Holdings Limited (ASX:MMJ)

MMJ Group Holdings Limited (ASX:MMJ) is a holding company involved in global cannabis investments. As on 21 November 2018, the company announced that the suspension of trading in the securities of MMJ would be lifted from 22 November 2018. The stock was suspended on 5 November 2018 because of pending re-compliance with Chapters 1 and 2 of the listing rules. In another release on ASX, the company reported that the group had ten minority investments (i.e., two being public, and eight private), with seven of them in Canada, two in Australia and one in the United States of America. The firm is concentrating heavily on the Canadian investments opportunities as it’s the first G7 nation to federally legalize the usage of recreational cannabis. As per the Investor presentation, North America serves as a large market for recreational cannabis usage. In order to this, the expected market size of the recreational cannabis in Canada is around $1.81-4.34 Bn while the estimated current size is ~ $1.34- $2.75 Bn, implying a 35-57% expected expansion in the market size. The company is very optimistic about the outlook and expects notable developments across its portfolio of companies. In the last six months, the share price of the company has fallen 5.71 percent as on 4 October 2018. MMJ’s shares last traded at $0.330 with a market capitalization of circa $75.95 million.Â

MGC Pharmaceuticals Limited (ASX:MXC)

MGC Pharmaceuticals (ASX:MXC) is an EU based Bio-Pharma company with many years of technical clinical and commercial experience in the medical cannabis sector. The company has recently signed a pact with the leading Universities to form an international research hub namely “CannaHub” with the object of developing the world leading medicinal cannabis innovations which will aid in the treatment of cancer. The “CannaHub” will in future act as the primary research and product development engine for the firm. Moreover, the company has initiated legal proceeding against Varm Cosmo in relation to the breach of material contract terms concerned with the binding supply agreement. The company has sought a minimum of € 625,000 in contract restitution plus the damages suffered by MGC derma. For the Quarter ended 30 September 2018, the company had adequate cash of circa $8.5 Mn signifying that it can effectively continue its operations and commence construction of its Maltese facility. Furthermore, the company has done well on most of the fronts which is a corroboration toward its “seed-to-pharma” strategy & emphasizing the start of commercialization of its “CannEpil” in Australia. The sale of MGC Derma to CannGlobal has allowed the firm to solely concentrate on building its pharma operations, developing innovative cannabis medications & constructing the firm’s facility in Malta. In the last three months, the share price of the company has receded by 28.07 percent as on 20 November 2018. MXC’s stock traded at $0.04 with a market capitalization of circa $49.73 million.

Botanix Pharmaceuticals Limited (ASX:BOT)

Botanix Pharmaceuticals Limited (ASX:BOT) is a clinical-stage medical dermatology company based in Perth, Australia and Philadelphia. For the Quarter ended September 2018, the firm witnessed rapid growth in its product portfolio with their products going through the various development phases. The company had a successful meeting with the FDA authorities as regards the development of their atopic dermatitis product named “BTX 1204” also the company has been awarded the grant from the Australian government to enter into a collaboration with University of Queensland. For the FY ended 30 June 2018, the group reported a comprehensive loss after tax of $11.01 Mn and witnessed a net cash outflow from operating activities of $9.91 Mn & had a cash balance of $17.26 Mn. The company is now focusing its research towards “Cannabinoid” due to their efficacy, and their safety profiles are validated in various clinical studies as well as the recent nod by FDA to “Epidiolex” (GW Pharma). In the last six months, the share price of the company has fallen 42.96 percent as on 20 November 2018. BOT’s shares traded at $0.077 with a market capitalization of circa $58.32 million as on 21 November 2018.

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