3 penny cannabis stocks to bet on for high returns

HIGHLIGHTS

  • The UK stock market has slowly-gradually started allowing cannabis-related companies to list on its exchange.
  • Businesses that operate in the cannabis segment have received much attention and have attracted investment from private and institutional investors.

The UK stock market has slowly-gradually started allowing cannabis-related businesses to list. At present, only medical cannabis businesses that do research and development of drugs to treat different diseases are allowed for listing on the exchanges.

Businesses that operate in the cannabis segment have received a lot of attention and have attracted investment from private and institutional investors. Also, according to market experts, the cannabis-based market segment is still underpenetrated and has vast potential to grow in upcoming years.

Cannabis stocks to invest

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Let us look at three FTSE listed cannabis companies and their investment prospects: 

Chill Brands Group Plc (LON: CHILL)

The company offers a range of cannabidiol products (CBD) in the US and other countries. It is engaged in the research and development of different products and retails them through its brand chill.com and Zoetic.

The company reported total revenue of USD 0.5 million for its Chill branded products in the three months ended 30 September 2021. Also, the company’s board is working closely with Viridian Capital Advisors, the strategic advisor to create and implement new investor relations communication strategies.

Chill Brands Group Plc’s current market cap is £28.63 million as of 5 November 2021.

Oxford Cannabinoid Technologies Holdings Plc (LON: OCTP)

The company is engaged in developing medicine using cannabinoid derivatives to treat and address unmet medical needs. The company is currently in the development phase of various cannabinoid-based drugs for pain relief. After the successful clinical trials, it will apply for regulatory approvals.

The company raised £16.5 million through its initial public offering in May 2021 to help finance its business development.

Oxford Cannabinoid current market cap is £22.33 million as of 5 November 2021.

MGC Pharmaceutical Ltd (LON: MXC)

The company operates in the medical cannabis business engaged in developing affordable phytocannabinoid based medicine for its patients. The company’s stock has a dual listing on London and Australian Stock Exchange.

Recently the company has signed a USD 24 million supply and distribution agreement with US-based AMC Holdings Inc. The agreement has helped launch the company’s entry into the US healthcare market. Also, the company plans to conduct a clinical trial of its various products and seek US regulatory approvals after obtaining the US National Clinical Trial Number.

MGC Pharmaceutical Ltd current market cap is £60.10 million as of 5 November 2021.

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