Medical cannabis play Althea lodges $20m prospectus ahead of ASX listing
Health & Biotech
Medical marijuana company Althea could be the first new pot stock on the market since Elixinol’s IPO in January.
Althea this week lodged a prospectus to raise $19.65 million in an initial public offering.
Althea’s threadbare website says the company launched in 2016 and received a grower licence in March this year. Prospective cannabis producers need a licence in order to apply for a permit once they are ready to start growing.
The company is focusing “on the supply of high-quality medicinal cannabis for eligible patients across Australia”.
But it doesn’t mention whether that entails entering the competitive growing space, manufacturing their own, importing, or providing patient access via clinics. These are the four main areas of operation in Australia at the moment.
Company representatives did not respond to inquries before deadline and the prospectus does not yet appear to be online.
Althea does have one thing in its favour: a $US2.5 million investment from Canadian pot company Aphria.
The Canadian bought 25 per cent of Althea in January.
In April, Aphria said it had sent a shipment of co-branded cannabis oil and dried flower products to Althea for distribution to eligible medical cannabis patients, indicating the company also has an importing licence.
Hemp farmers rejoice
Meanwhile the West Australian goverment on Thursday changed the law to allow hemp farmers to increase the THC content of their plants, bringing the state into line with the rest of the country and New Zealand.
Amendments to the Industrial Hemp Act 2004 allow THC content in industrial hemp to rise to 1 per cent from 0.35 per cent.
There are currently 50 commercial hemp licensees in Western Australia.