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Here’s our fortnightly wrap of all the news driving ASX small cap health stocks.
Shares in pot stock Zelda Therapeutics (ASX:ZLD) have gained 6 per cent off the back of some recent momentum.
The company says it will look into treating breast cancer after Professor Cristina Sanchez, a member of its medical advisory board, found in a study that treatment with THC can promote anti-tumour responses under certain conditions. You can read the complicated science behind that study here.
It also is preparing for a future in the US, signing a binding agreement with US pot company Ilera Healthcare to open up a market there.
Cancer fighter Immutep (ASX:IMM) has been another company to see a modest rise in the share price after a series of incremental announcements.
The company, which already has deals with pharma giants Merck and Pfizer, has been busy over the past few weeks, presenting new data on its cancer and autoimmune disease drugs at various conferences, dosing patients in a Phase II trial with patients suffering from lung cancer and picking up a tidy $872k in the research and development tax incentive.
THC Global (ASX:THC) has gained 16 per cent in the past fortnight, as makes its first revenue from medicinal cannabis.
Calling itself the “leading medicinal cannabis company”, THC reported $815 in external sales in its medicinal cannabis segment for the 2018 financial year.
The rest of the $2.7 million it made came from sales of hydroponics equipment, materials and nutrients.
And a little like when we last checked in, Factor Therapeutics (ASX:FTT) leads the charge with a 67 per cent rise, but that is due simply to its languishing share price fluctuating at less than half a cent.
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It hasn’t been a great few weeks for Smiles Inclusive (ASX:SIL). The company lost its CEO in February, and then came under pressure to be more transparent with its finances. Its shares have fallen 40 per cent.
The company said its bankers have agreed – for the time being – to overlook any past breaches of their debt covenants.
In the half year accounts, Smiles said NAB was “considering” its request for a covenant waiver due to “significant events” in the first six months of the financial year.
Loan covenants are conditions that require the borrower to fulfil certain conditions or forbids them from taking certain actions while they owe money.
If they breach these conditions, they have to hope their debtor will waive the penalty.
Althea Group (ASX:AGH) have also suffered a share price drop, down 19 per cent.
The company has enough money for its Victorian cannabis growing facility in the current cash kitty and a large marketing spend, however.
Here’s a table showing price performance for the ASX’s small cap health stocks.
Swipe or scroll to reveal full table. Click headings to sort