Weed Week: More US states vote to legalise cannabis and Czech Republic to follow in Germany’s footsteps
Pic: via Getty Images.
- Two more US states join the 19 that already allow legal recreational cannabis use
- ECS Botanics’ Victorian medical cannabis facility is safe from flooding in the state, so far
- Cann looks to commercialise its Satipharm CBD capsules for over-the-counter (OTC) use
The US midterm elections are underway and five states could join the 19 states that allow adult-use cannabis.
Missouri and Maryland havejust voted to legalise weed as of July 2023 (but you have to be over 21) and Arkansas, North Dakota and South Dakota could be next:
Maryland has voted to legalize recreational marijuana use https://t.co/ZgA3ocstAR
— philip lewis (@Phil_Lewis_) November 9, 2022
Following President Biden’s plan to pardon all federal offenses of cannabis possession in the USA, convictions in Maryland and Missouri for conduct that’s now legal will be expunged, and people currently serving time for cannabis offenses will be eligible for re-sentencing.
The Oklahoma referendum failed to make it on the ballot in time but will be the subject of a special election in March 2023.
And in Europe, the Czech Republic is jumping on the legalisation bandwagon with Germany.
The Czech coalition government is drafting a bill to regulate the industry, which is expected to be presented in March 2023, while full legalisation may be entered into effect by January 2024.
ASX WEED STOCKS
| Code | Company | Price | % Year | % Six Month | % Month | % Week | Market Cap |
|---|---|---|---|---|---|---|---|
| ECS | ECS Botanics Holding | 0.023 | -30% | -8% | 0% | 10% | $25,454,805 |
| BOD | BOD Australia | 0.099 | -61% | -39% | 19% | 8% | $14,973,403 |
| WFL | Wellfully Limited | 0.0215 | -76% | -68% | -23% | 8% | $7,618,096 |
| CAN | Cann Group Ltd | 0.24 | -19% | -27% | -19% | 4% | $83,886,048 |
| EPN | Epsilon Healthcare | 0.031 | -74% | 0% | 29% | 3% | $9,198,247 |
| HGV | Hygrovest Limited | 0.072 | 7% | 18% | 4% | 1% | $16,556,687 |
| IDT | IDT Australia Ltd | 0.1 | -78% | -29% | 8% | 1% | $24,102,180 |
| CTV | Colortv Limited | 0.008 | -89% | -68% | 0% | 0% | $1,236,985 |
| LV1 | Live Verdure Ltd | 0.15 | -65% | -33% | -29% | 0% | $9,059,649 |
| SCU | Stemcell United Ltd | 0.013167 | 0% | 0% | 0% | 0% | $14,995,837 |
| MRG | Murray River Grp | 0.245 | 0% | 0% | 0% | 0% | $10,808,210 |
| TSN | The Sust Nutri Grp | 0.14 | -36% | -10% | 0% | 0% | $16,884,894 |
| AC8 | Auscann Grp Hlgs Ltd | 0.04 | -58% | -37% | 0% | 0% | $17,621,884 |
| EVE | EVE Health Group Ltd | 0.001 | -76% | -40% | 0% | 0% | $5,274,483 |
| CGB | Cann Global Limited | 0.021 | -79% | -22% | 0% | 0% | $5,436,345 |
| IRX | Inhalerx Limited | 0.06 | -40% | -30% | 0% | -2% | $11,236,017 |
| BOT | Botanix Pharma Ltd | 0.062 | -2% | -23% | 3% | -3% | $71,672,712 |
| ZLD | Zelira Therapeutics | 1.16 | -84% | -9% | -2% | -3% | $11,109,455 |
| CAU | Cronos Australia | 0.845 | 345% | 182% | 21% | -6% | $460,495,600 |
| DTZ | Dotz Nano Ltd | 0.28 | -33% | -13% | 8% | -7% | $128,368,085 |
| CPH | Creso Pharma Ltd | 0.027 | -82% | -52% | -33% | -7% | $49,570,843 |
| MXC | Mgc Pharmaceuticals | 0.013 | -73% | -43% | -13% | -7% | $40,121,862 |
| IHL | Incannex Healthcare | 0.24 | -55% | -37% | -25% | -8% | $373,280,952 |
| MDC | Medlab Clinical Ltd | 9.5 | -66% | -37% | -19% | -8% | $21,693,269 |
| RNO | Rhinomed Ltd | 0.11 | -55% | -39% | -19% | -8% | $31,429,166 |
| EMD | Emyria Limited | 0.19 | -44% | -33% | -14% | -10% | $52,250,469 |
| EXL | Elixinol Wellness | 0.027 | -71% | -37% | -18% | -10% | $8,539,170 |
| ALA | Arovella Therapeutic | 0.025 | -40% | -34% | -24% | -11% | $16,771,270 |
| AVE | Avecho Biotech Ltd | 0.008 | -50% | -64% | -27% | -11% | $14,702,955 |
| NTI | Neurotech Intl | 0.086 | 32% | 69% | -14% | -13% | $68,828,305 |
| EOF | Ecofibre Limited | 0.215 | -73% | -46% | 2% | -14% | $75,081,128 |
| WOA | Wide Open Agricultur | 0.255 | -68% | -60% | -43% | -15% | $32,775,602 |
| AGH | Althea Group | 0.068 | -73% | -50% | -28% | -18% | $22,322,520 |
| LGP | Little Green Pharma | 0.18 | -73% | -54% | -37% | -25% | $43,365,739 |
| ROO | Roots Sustainable | 0.002 | -78% | -60% | -50% | -33% | $1,830,865 |
Oof. Only seven companies were in the green, with eight flat and 21 stocks in the red.
Here are the ones with notable news:
The company wrapped up the sale of its Tasmanian medicinal cannabis business and assets for $3 million, with the transaction now complete.
The funds will be used for the continued expansion of the Victorian facility – which ECS says has remained protected and operating with the recent flooding in the state.
Whilst the site had no history of prior flooding, the company invested in substantially increasing levee banks to protect the facility from the Loddon River.
To date, the levee banks have kept the facility dry, allowing operations to continue, and the cannabis plants to be maintained, but the ongoing expansion of the facility by way of construction of multiple new protected cropping enclosures has also been delayed.
Cann says it has positively progressed negotiations with GlaxoSmithKline Consumer Healthcare Australia Pty Ltd (trading as Haleon) on terms relating to the commercialisation of its proprietary Satipharm CBD capsules for over-the-counter (OTC) use.
The company has now agreed and signed a non-binding term sheet with proposed milestone payments, sales-related payments and manufacturing margins to be paid to Cann and confirms the intended grant of exclusive rights to Haleon for the marketing, sales, distribution and promotion of the product within Australia and New Zealand and an exclusive right of first negotiation to obtain an exclusive licence to commercialise the product in other jurisdictions.
The parties will continue with the negotiation of a definitive agreement in parallel with Haleon’s evaluation of the product.
A Phase III clinical study to support registration of the product in Australia is underway with recruitment targets having recently been met, the results of which are expected to be available early in calendar year 2023.
Wholly owned US subsidiary Sierra Sage Herbs (SSH) has broadened its international footprint following the launch of Green Goo products across Canada.
The Green Goo range includes beauty, personal care, first aid and animal products.
A total of 11 stock keeping units (SKU) are now being sold online in Canada and SSH is also preparing to launch the range through Amazon Canada in the coming weeks to increase additional exposure and sales growth.
The company says the North American OTC health product market was valued at US$62.88Bn in 2021 and is expected to grow at a CAGR of 6.04% to 2030.
And that’s not all the news from North America.
Creso’s Canadian subsidiary Mernova Medicinal Inc has secured its Cannabis 2.0 sales licence from Health Canada permitting the sale of cannabis extracts, electronic vaporisers and edibles across all approved provinces and medicinal channels.
Mernova will initially focus on increasing product uptake and sales of its leading Ritual Gold electronic vaporiser range.
Plus, the cannabis player has secured commitments to raise up to $7.6m through two separate issues of convertible notes – including an agreement with NYC-based asset and fund manager Obsidian Global to raise up to $5 million.
ECS, CAN and CPH share prices today:
Cap raises for cannabis players this fortnight:
Botanix Pharmaceuticals (ASX:BOT)
Botanix has secured commitment for $5 million at $0.063 per share via an institutional placement – and announced an SPP for $3 million.
The placement was to Antares Capital, an Aussie institutional investor with extensive experience in life sciences and funds under management of more than $33.4 billion.
Funds raised will be used to progress development of the company’s pipeline of assets in light of the recent successful BTX 1702 rosacea clinical study, for costs associated with preparing for the FDA approval and commercial launch of Sofpironium Bromide and for general working capital purposes.
Another cap raising, this time from Emyria which completed a $3m placement to accelerate Ultra-Pure cannabinoid registration programs with the TGA, and advance multiple preclinical screening programs for Emyria’s novel MDMA-inspired drug discovery program being developed with the University of Western Australia.
The company nabbed a $1m cornerstone investment received from lead manager, Sixty Two Capital, and a follow-on $500k investment from Tattarang’s Tenmile Ventures.
The placement is being conducted at an offer price of $0.18 per share, representing a 14.3% discount to the last traded price on 26 October 2022 ($0.21).
Last week Althea announced firm commitments received for $1.5 million placement and the launch of a $2.5 million share purchase plan for eligible shareholders at $0.067 per ordinary share.
The funds raised will be utilised to fund ongoing growth in the current product range and support the launch of additional products across the Althea cannabis-based medicines business, including exciting new SKUs launching in the coming months, as well as supporting the company as it targets cash flow break even and operating profitability in Q3FY23.
The cannabis company has received firm commitments for a $4 million placement and launched a $2 million Share Purchase Plan at $0.20 per ordinary share with free-attaching 1 for 1 option exercisable at $0.25.
The funds will be used for operational expenses and accelerating European and Australian sales, with LGP wholly focused on achieving breakeven and ultimately delivering profitable sales, including by delivering into new and existing European supply agreements and driving increased sales in Australia.
BOT, EMD, AGH and LGP share prices today:
At Stockhead we tell it like it is. While Creso Pharma is a Stockhead advertiser, it did not sponsor this article.
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