Aussie pot stocks lit up on Monday after Canada proposed a dollar-a-gram tax on legal, recreational marijuana.

At least eight ASX-listed cannabis plays have exposure to Canada — which plans to legalise marijuana for recreational use from July 1 next year.

The tax — $C1 ($1.03) per gram or 10 per cent of the retail price, whichever is higher — was in line with expectations, allowing the new legal marketplace to compete with the black market.

However, demand will far outweigh supply with four million to six million Canadians expected to use cannabis recreationally in 2018 according to government predictions.

“While the Canadian industry is investing heavily in capacity expansion, it is unlikely that it will be sufficient to meet this demand for several years,” wrote analyst Matthijs Smith in a recent Canncord Gennuity research report.

Mr Smith estimates that by 2018 Canadian recreational users of marijuana will be consuming 650,000kg of cannabis a year.

Australian growers like Cann Group (ASX:CAN) are, therefore, very keen to see the law changed so they can start exporting their raw material.

On Monday, 11 of 20 ASX cannabis stocks tracked by Stockhead gained ground.

The Hydroponics Co (ASX:THC), which markets some 600 products in Canada, jumped 27 per cent to 45c.

Auscann group (ASX:AC8) which partners with Canada’s Canopy, gained 10 per cent to 79.5c.

Creso Pharma (ASX:CPH), which recently bought Canadian medical cannabis producer Mernova Medicinal, climbed 11 per cent to 75.5c.

Ticker Name Price Nov 13 % change Nov 13 Market Cap
CAN CANN GROUP 2.65 0.1229 255713872
AC8 AUSCANN GROUP HOLDINGS 0.795 0.0966 196745264
MDC MEDLAB CLINICAL 0.68 0.0794 112584152
MMJ MMJ PHYTOTECH 0.445 0 93419784
MXC MGC PHARMACEUTICALS 0.074 -0.06329 86632088
CPH CRESO PHARMA 0.755 0.11029 62352944
ZLD ZELDA THERAPEUTICS 0.085 0.07595 59632512
THC HYDROPONICS CO/THE 0.45 0.2676 36955500
QBL QUEENSLAND BAUXITE 0.033 0.65 30307858
RGI ROTO-GRO INTERNATIONAL 0.35 0 29194026
BOT BOTANIX PHARMACEUTICALS 0.053 0.01923 28241788
CP1 CANNPAL ANIMAL THERAPEUTICS 0.18 -0.027 17112500
ESE ESENSE-LAB-CDI 0.27 0 16783554
AEB ALGAE.TEC 0.021 0 14433709
ATP ATLAS PEARLS AND PERFUMES LT 0.028 0 11980409
LSH LIFESPOT HEALTH 0.16 0.0323 11615727
SCU STEMCELL UNITED 0.034 0.13333 11581130
EVE EVE INVESTMENTS 0.007 0.16667 10213326
BDA BOD AUSTRALIA 0.15 -0.1429 8055600
CHP CHAPMANS 0.006 0 5486629.5
  • Meanwhile Queensland Bauxite (ASX:QBL) which invested in Medical Cannabis Limited (MCL) in March, gained 65 per cent on Monday after hemp food products became legal in Australia at the weekend. MCL plans to launch its Vitahemp food range on November 27.