It’s a party as Aussie cannabis companies bring the beer and the recreational weed
eSense Lab is bringing the cannabis beer, MMJ Phytotech the doobies, all we need now are some shrimps on a BBQ and it’s a Christmas party.
The ASX’s cannabis companies aren’t breaking for Christmas, though. On Tuesday morning four pot stocks told investors about their plans for Canadian recreational users, Australian marijuana and beer.
eSense Lab (ASX:ESE) is following cannabis-essence rival Creso into the field of cannabis-flavoured beer.
eSense, which makes cannabis ‘terpenes’ or fragrant oils found in plants that carry flavour and aroma, has done a deal with Young Henry’s Brewing Company to make a line of terpene beers.
While it didn’t specifically say these will include a cannabis beer, CEO Haim Cohen said the cannabis-infused alcohol markets were growing at a tremendous rate.
“Our unique and patented technology allows us to produce an unmatched product in terms of quality and usability, and importantly without restriction or regulation in any territories, whilst still maintaining the complete cannabis terpene profile and their associated benefits.”
Chairman Brendan de Kauwe emphasised the possible health benefits to Stockhead. We asked whether they were planning a ‘health beer’ and he said “essentially yeah”.
Terpenes carry the pungent odour of cannabis and offer some medicinal properties — but they don’t contain THC, the compound that gets you stoned, or CBD which is the restricted bit used in medicinal products.
Over in Canada, MMJ Phytotech (ASX:MMJ) is preparing for the legalisation of recreational cannabis in July next year — and expected hike in demand — by buying into new grower Weed Me.
MMJ PhytoTech is buying $C2 million ($2.1 million) secured convertible debentures in the Toronto business, which are convertible into shares and warrants.
Weed Me expects to have a licence for its 4000kg a year medical-grade cannabis production facility in the next three months.
John Deniz of Paragon Funds Management wrote in Live Wire that demand in Canada is expected to hit 750,000kg/year within five to seven years.
And back home, Algae.Tec (ASX:AEB) has applied for a lience to grow and produce cannabis in Australia.
The company, which has scrapped its original biofuel strategy and is now adapting its algae-growing equipment for nutraceuticals and cannabis, says adding an Australian crop to those it’s rearing in Uruguay will add “increased optionality”.
The Hydroponics Company (ASX:THC) went into ta trading halt this morning, pending a capital raising.