ASX Pot Stocks: Roto-Gro jumps on Canniberia’s pre-approval for cannabis cultivation
Health & Biotech
Health & Biotech
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Leader of the pot stocks today is Roto-Gro International (ASX:RGI), which rose 6.45% in morning trade.
It followed news that RGI customer Canniberia has been granted pre-approval for its cannabis cultivation license from Infarmed I.P – a government agency accountable to Portugal’s Health Ministry.
It’s kind of a big deal because the granting of the pre-license satisfied the condition precedent for a CA$1.039 million purchase order for Canniberia’s first order of RotoGro’s technology, which was to be provided within 14 business days after the date on which it received its pre-license.
The purchase and sale agreement includes a technology purchase order for 144 RotoGro rotational garden systems and one RotoGro plant nutrient management system.
The RotoGro gardens will be delivered in two separate orders, totalling CAD $1.9 million.
“The Canniberia project will be RotoGro’s first in the thriving European space, which will serve as a showcase facility, and will bring RotoGro one step closer to expanding its global presence as the leading indoor vertical farming technology partner in the controlled-environment agriculture space,” RotoGro CEO Michael Di Tommaso said.
“For these reasons, the company has decided to provide Canniberia with a 30-day time extension to provide the purchase order for phase one of the project.
“Canniberia has cited minor delays due to the pandemic, but communicates daily with the Company, expressing excitement to proceed with RotoGro as its technology partner.”
Canniberia state-of-the-art cannabis cultivation facility is expected to be completed in Q4 2021.
And Roto-Gro expects the delivery and installation of its technology will occur in late Q4 2021 and early Q1 2022.
Other ASX listed pot stocks with news out today
The company jumped 4% after strengthening its management team ahead of its proposed NASDAQ dual-listing.
William Lay has been appointed executive vice president – strategy, origination and operations, and Creso founder and former director Dr Miri Halperin Wernli has been appointed as strategic advisor.
Creso says both executives have considerable expertise in the psychedelic, recreational cannabis and CBD industries – as well as established networks across North America and other international markets which will be beneficial for the company as it progresses its growth trajectory.
Lay was previously associate director M&A of Canopy Growth (NASDAQ:CGC/CSE:WEED) which was the first cannabis company listed on the NYSE with a peak market capitalisation of US$17 billion.
“We are pleased to have attracted William Lay as executive vice president,” Creso non-executive chairman Adam Blumenthal said.
“The calibre of this appointment highlights the incredible opportunity that Creso Pharma has as the company shifts its focus to the US.
“We look forward to leveraging Mr Lay’s deep understanding of the North American cannabis industry to progress our corporate strategy and unlock value accretive opportunities.”
“It is also a pleasure to welcome Miri back to Creso Pharma in an advisory capacity.”
“Her extensive experience in clinical psychiatry, product development and the psychedelics sectors will be greatly beneficial to Creso Pharma in the near and long term.”
Lay said that Creso has a “a very unique value proposition and significant growth prospects across both the cannabis and psychedelic sectors.”
“The company currently has a number of potential agreements, acquisitions and partnerships under review,” he said.
“These are all US focused and have the ability to further cement the company’s footprint in the US, particularly as it pushes towards a dual listing.”
Little Green Pharma was up 3.38% today after it successfully imported its first shipment of ~50 kilograms of Billy Buttons THC 16 cannabis flower medicine, from its recently-acquired Danish Facility into Australia.
The company only acquired the facility two months ago, and expects to import two further flower shipments of cannabis flower medicines by end October 2021.
LGP said the shipments of Billy Buttons, which has a tetrahydrocannabinol (THC) content of 16% and is available for sale in Australia in 15g packs, are expected to help meet the growing demand in Australian for cannabis flower medicines.
“The import of this first shipment so quickly following the acquisition is a milestone achievement by our new Denmark team,” LGP managing director Fleta Solomon said.
“To be able to meet all the regulatory requirements to supply and import product within this timeframe is a significant achievement and consistent with our reputation as a leading global medicinal cannabis business.”
“Flower medicines are becoming increasingly popular with Australian doctors in prescribing to patients for quick onset of effects, mainly for breakthrough pain or to assist with sleep, and with access to this Denmark-grown product we are able to provide a new supply chain of high-quality, medicinal cannabis flower in an under-supplied market.”
Plus, the company also announced two new appointments with the former managing director of the Danish facility Morten Snede as CFO, and the former managing director of Tasmanian Botanics Tony Roberst as General Manager (EU).