Weed Week: US looks to decriminalise cannabis and Victoria Greens say legal weed could mean $1.21bn in revenue
Health & Biotech
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- The US is planning to pardon federal offences of cannabis possession and potentially reclassify the drug
- The Victorian Greens say taxing cannabis at 30% would mean $1.21bn in revenue over a decade
- A total of 16 out of the 37 cannabis stocks on the ASX were in the green this week
Big news out of the US last week, with President Joe Biden announcing plans to pardon all federal offenses of cannabis possession in the USA – highlighting the first significant step towards decriminalisation.
The announcement also marks initial steps towards the potential shift to reclassify cannabis on a federal level, with President Biden encouraging governors to advance steps to pardon possession charges at a state level and will task the Department of Health and Human Services and Attorney General Merrick Garland to expeditiously review how cannabis is scheduled under federal law.
For pot stocks with a lot of skin in the US game this could be a real boost for operations in North America.
Plus, word on the street is that any positive legislative change could provide the catalyst for major US institutions to increase exposure to the sector.
And on our side of the pond, the Victorian Greens have proposed for cannabis to be legalised for adults ahead of the State election in November.
The plan would see a 30% tax similar to alcohol, which could potentially add $1.21 billion in revenue over a decade.
BREAKING: Today the Victorian Greens will launch their plan to legalise and regulate cannabis in Victoria from 2024.
For decades our state has treated drug use as a criminal issue rather than a health one, putting drug users at great risk.
It’s high-time we changed that.
— Samantha Ratnam – Leader of the Victorian Greens (@SamanthaRatnam) October 9, 2022
ASX WEED STOCKS
| Code | Company | Price | % Year | % Six Months | % Month | % Week | Market Cap |
|---|---|---|---|---|---|---|---|
| EXL | Elixinol Wellness | 0.035 | -62% | -41% | -5% | 40% | $11,069,295 |
| ROO | Roots Sustainable | 0.005 | -44% | -29% | 25% | 25% | $3,748,163 |
| NTI | Neurotech Intl | 0.11 | 116% | 83% | 11% | 24% | $75,148,408 |
| AGH | Althea Group | 0.093 | -65% | -50% | 13% | 16% | $29,876,051 |
| EPN | Epsilon Healthcare | 0.025 | -77% | -46% | 9% | 14% | $7,121,224 |
| CPH | Creso Pharma Ltd | 0.034 | -69% | -49% | -6% | 13% | $60,714,043 |
| IDT | IDT Australia Ltd | 0.1 | -84% | -39% | -17% | 11% | $24,102,180 |
| CAU | Cronos Australia | 0.72 | 380% | 148% | 20% | 7% | $390,831,346 |
| HGV | Hygrovest Limited | 0.071 | -3% | 15% | 8% | 6% | $16,326,733 |
| ECS | ECS Botanics Holding | 0.022 | -42% | -24% | -15% | 5% | $25,454,805 |
| WOA | Wide Open Agricultur | 0.46 | -39% | -31% | -16% | 3% | $59,124,616 |
| ALA | Arovella Therapeutic | 0.032 | -30% | -26% | 39% | 3% | $21,467,226 |
| EOF | Ecofibre Limited | 0.215 | -75% | -52% | -16% | 2% | $82,065,419 |
| EMD | Emyria Limited | 0.215 | 0% | -28% | -7% | 2% | $59,125,531 |
| CAN | Cann Group Ltd | 0.27 | -7% | -33% | -2% | 2% | $92,597,677 |
| IHL | Incannex Healthcare | 0.2625 | -25% | -42% | -8% | 1% | $403,752,329 |
| CTV | Colortv Limited | 0.008 | -89% | -68% | 0% | 0% | $1,236,985 |
| SCU | Stemcell United Ltd | 0.013167 | 0% | 0% | 0% | 0% | $14,915,372 |
| MRG | Murray River Grp | 0.245 | 0% | 0% | 0% | 0% | $10,808,210 |
| TSN | The Sust Nutri Grp | 0.14 | -50% | -14% | 0% | 0% | $16,884,894 |
| RGI | Roto-Gro Intl Ltd | 0.011 | -63% | 0% | 0% | 0% | $3,768,521 |
| LGP | Little Green Pharma | 0.24 | -65% | -48% | -16% | 0% | $56,616,381 |
| MXC | Mgc Pharmaceuticals | 0.015 | -73% | -35% | -6% | 0% | $42,759,710 |
| AC8 | Auscann Grp Hlgs Ltd | 0.04 | -56% | -43% | 0% | 0% | $17,621,884 |
| EVE | EVE Health Group Ltd | 0.001 | -70% | -20% | 0% | 0% | $5,274,483 |
| CGB | Cann Global Limited | 0.021 | -79% | -48% | -13% | 0% | $5,436,345 |
| BOT | Botanix Pharma Ltd | 0.059 | -12% | -27% | -15% | -2% | $64,032,346 |
| BOD | BOD Australia | 0.091 | -66% | -46% | 6% | -2% | $13,365,306 |
| MDC | Medlab Clinical Ltd | 11.11 | -52% | -15% | -15% | -3% | $25,369,707 |
| DTZ | Dotz Nano Ltd | 0.26 | -35% | -22% | -4% | -4% | $117,107,727 |
| ZLD | Zelira Therapeutics | 1.24 | -82% | -61% | -17% | -4% | $11,875,624 |
| LV1 | Live Verdure Ltd | 0.21 | -44% | -18% | -22% | -5% | $12,158,508 |
| IRX | Inhalerx Limited | 0.061 | -42% | -51% | 9% | -5% | $11,423,284 |
| RNO | Rhinomed Ltd | 0.135 | -56% | -45% | -25% | -13% | $38,572,159 |
| AVE | Avecho Biotech Ltd | 0.01 | -47% | -47% | -17% | -17% | $18,378,693 |
| WFL | Wellfully Limited | 0.022 | -85% | -52% | -27% | -19% | $6,131,339 |
| PAL | Palla Pharma Ltd | 0 | -100% | -100% | -100% | -100% | $47,764,383 |
A total of 16 companies were in the green, with 10 companies flat and 11 stocks in the red.
Here are the ones with notable news:
The company has secured Victorian Government licences to enable the operation of its newly commissioned Melbourne Distribution Centre (MDC).
The two licences permit the supply of Schedule 2 (all products), Schedule 3 (all products), Schedule 4 (all products) and Schedule 8 (cannabis, THC products) products to pharmacies from the MDC.
“The highly secure, state-of-the-art MDC facility can support a significant uplift in medicinal cannabis sales volume through our market leading CanView platform,” CEO Rodney Cocks said.
It also puts product closer to pharmacies and patients while underpinning business continuity contingency planning.”
IHL says it had a positive pre-Investigational New Drug Application (pre-IND) meeting with the US Food and Drug Administration (FDA) on its IHL-216A drug, which is a combination of CBD and isoflurane (ISO) that is being developed for treatment of traumatic brain injury and concussion (TBI).
“Feedback from the FDA in the pre-IND meeting indicated that the agency is highly interested in the development of IHL-216A for treatment of traumatic brain injury,” chief scientific officer Dr Mark Bleackley said.
“Their responses covered all aspects of the proposed development and engaged a range of disciplinary experts that provided useful insight on all aspects of our development plan.
“The FDA has provided essential advice on inhaled drug development that will guide the most efficient development of IHL-216A.”
LGP has partnered with German cannabis pioneer Cannamedical for the supply of bulk medicinal cannabis from Denmark to Germany, with a potential value of over $4.5 million (€3 million) over two years.
The agreement represents LGP’s fourth contract for the supply of medicinal cannabis into Germany and, together with Four20 Pharma, Illios Sante and Demecan, rounds out its wholesaling portfolio with the largest independent, own-brand medicinal cannabis distributor in Germany.
CAU, IHL and LGP share prices today:
At Stockhead we tell it like it is. While Incannex Healthcare is a Stockhead advertiser, it did not sponsor this article.
