Pot Stocks: Althea tops the podium after becoming a licensed producer
Health & Biotech
Health & Biotech
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Althea (ASX:AGH) led this morning’s charge of pot stocks with news its Canadian subsidiary, Peak Processing Solutions, obtained its Standard Processing Licence.
Althea said this means its commercial operations could begin immediately and it’s ready to capitalise on the so-called “Cannabis 2.0” boom.
Canada’s cannabis industry boomed in 2018 when recreational marijuana was legalised but 2019 saw a correction after the market became flooded.
“Cannabis 2.0” alludes to the launch of a new range of cannabis derived products. A significant proportion of these are ingestible products such as infused beverages, concentrates and topicals.
Deloitte has estimated this second boom is worth C$2.7 billion ($2.82 billion) annually. Furthermore, almost one in four Canadians are either consuming or likely to consume such products.
Althea CEO Josh Fegan told shareholders this morning the processing licence was important for the company’s plans to partake in the boom now that it had cleared necessary regulatory hurdles.
“We are excited by the potential to serve the burgeoning Cannabis 2.0 market and look forward to providing updates on our progress,” he said.
Stockhead has contacted the company for further comment.
Shares rose 12 per cent this morning. While they tumbled in the second half of 2019, they are up more than 80 per cent in 2020.
Pharmaceutical company AusCann (ASX:AC8) announced it has successfully completed its first Phase I clinical trial, studying how its THC/CBD pill moves through the human body.
AusCann’s capsules showed a lower peak concentration and less adverse affects compared to the pre-formulation oil comparator tested alongside the drug.
The company is now planning a Phase IIa trial of its pills against chronic neuropathic pain.
MGC Pharmaceuticals (ASX:MXC) was the latest stock to declare it would benefit from the TGA’s decision to down-schedule low-dose CBD products to Schedule 3 status.
The regulator’s decision last week will mean these products could be issued over the counter without prescriptions.
MGC said it was uniquely placed, having a commercial presence in Australia in addition to its clinical programs.
Both AusCann & MXC shares saw a slight bounce at market open.