Another Aussie pot stock has just crossed the Tasman thanks to new NZ weed laws
Health & Biotech
Link copied to
Australian pot stock Elixinol has leapt across the Tasman to take advantage of New Zealand’s new medicinal cannabis laws.
Elixinol (ASX:EXL) has been Australia’s most successful cannabis stock, with a specialist US cannabis researcher last year rating it among the world’s top revenue-generating cannabis companies.
Elixinol claimed in September last year to be the first of its cohort to turn a profit.
The company told investors today it launched in New Zealand, following the passage of the country’s Misuse of Drugs (Medicinal Cannabis) Amendment Act in December.
It does not actually make medical cannabis products however, but hemp-based cannabidiol (CBD) products.
These include ingredients that people believe have medical properties but which, like the vast majority of cannabis products on the market around the world, aren’t registered drugs.
Shares rose as high as $3.03, a 10 per cent rise, just short of its all time high of $3.12.
It followed a move by THC Global (ASX:THC) who got in a week before the laws had even been passed last year, and Creso (ASX:CPH) which signed a deal with a Kiwi medicinal cannabis company.
Elixinol’s range of capsules, creams and tinctures can now be imported into New Zealand by individual patients if they meet prescription guidelines.
Patients in New Zealand can also enter or leave New Zealand with up to three months’ supply of CBD products with evidence of prescription.
The company has shipped its first order, says to chief Paul Benhaim.
“Over the past few weeks, we have seen a groundswell of change in legislation related to cannabidiol,” he said.
“The US Farm Bill was passed in December, and through that process, CBD was de-scheduled from the Controlled Substances Act. Now, this change in New Zealand enables Elixinol to ship CBD to patients who have been requesting it for years.”