Impression dives deeper into pot but investors don’t really care yet
Health & Biotech
Link copied to
Impression Health has been bitten by the marijuana bug, but unlike other companies’ deep dives into the sector it has had no impact on the share price.
Its (ASX:IHL) latest news is an MoU to buy cannabis oils from a Canadian manufacturer to sell into Australia.
That follows a letter of intent in September to consider buying quirky cannabis products, such as chewing gum, from a US manufacturer, and a licensing deal to distribute a synthetic cannabis drug called dronabinol in a variety of countries where it’s already available.
It’s unclear when Impression’s branded version of dronabinol will be ready for sale.
Any deals for Australia are dependent on Impression getting the right licences: it applied for permission to import and hold cannabis this month.
But the lack of state licences and the fact that most of these deals are not binding commercial arrangements have not inspired investors. An analysis of trading on days when Impression has announced cannabis news shows investors have been more inclined to sell than buy.
The stock ticked up 1c on Wednesday to 19c.
The company backdoor listed into a gold miner in early 2016 with a personalised mouthguard.
They sold the mouthguard via a range of partnerships and endorsements, from the NRL to listed dental chain Pacific Smiles (ASX:PSQ).
The CEO departed suddenly in July, and they brought in former “part-time” Parramatta Eels player Joel Latham.
The company is looking to expand its range, as mouthguards only brought in $231,000 in the September quarter, when its costs for the period were $854,000.
Impression Health has been contacted for comment.