Lunchtime ASX small cap wrap: which stocks are getting high
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Here are the top ASX small cap gainers and losers at Thursday lunch.
The ASX Small Ordinaries index was at a ten-year high today, gaining 36 points or 1.2 per cent to 2919 by 12.30pm AEST.
Cannabis news dominated the small cap sector today in the wake of Canada setting a date of October 17 for legalisation of recreational pot.
Two ASX stocks with direct exposure to the Canadian recreational — Creso Pharma (ASX:CPH) and The Hydroponics Company (ASX:THC) came out with public endorsements.
CPH climbed 7 per cent to an intraday high of 4c and THC made a similar gain to 56.5c.
Miner-turned-cannabis purveyor Queensland Bauxite (ASX:QBL) made a long-awaited acqusition announcement today, driving its shares up 35 per cent after a seven-week suspension.
QBL moved to full ownership of subsidiary Medical Cannabis Ltd and its legendary cannabis seed bank.
The company’s shares soared 35 per cent to 6.6c before cooling to 5.8c by 11.30am. It was suspended seven weeks ago at 4.9c.
The Medical Cannabis Ltd cannabis seed bank was made famous on the ABC’s Four Corners program for being stored in the previous owner’s freezer.
Melbourne-based Rhinomed (ASX:RNO) made a big cannabis-related gain after agreeing to license its nasal drug delivery product to US medical marijuana provider Columbia Care.
Rhinomed shares jumped 28 per cent to 16c by 11.45am AEST.
Under the propsed deal, Columbia Care and Rhinomed will “jointly develop a range of unique cannabinoid products targeting a wide range of significant and unmet clinical and consumer health needs in the United States”.
Elsewhere in cannabis land, health products Eve (ASX:EVE) bought the tea tree business that formed the basis of a cannabis deal in May.
EVE is buying Jenbrook, a NSW tea tree oil producer for $2.9 million in cash.
EVE shares were steady at 0.9c.
Here are the best and worst performing ASX small caps at 12.30pm AEST Thursday.
Scroll or swipe for full table:
Atlas Iron shares (ASX:AGO) were again the most heavily traded small cap stock today after the hotly sought-after junior iron ore producer told telling shareholders to take the $390 million cash offer stumped up by Gina Rinehart.
About 40 million shares had changed hands by 11.15am AEST. The stock was down 2 per cent at 4.4c.
“A majority of the Atlas board has determined that the Hancock Offer is superior to the MinRes scheme of arrangement,” Atlas told investors.
Microcap nickel explorer Caeneus Minerals (ASX:CAD) was also heavily traded with 34 million shares changing hands after a capital raising announcement.
The shares fell 50 per cent to 0.1c after announcing an issue at 0.004c to raise $263,356.
The funds will be used to explore its Columbus Marsh Project in Nevada and Pardoo nickel project in Western Australia which was recently fully acquired.