Well, with any stock market investment, it could be up in smoke – but with these ones it could even be sweet. Cannabis related stocks could just be going to have its hey day soon. As per new just released draft provisions, cannabis oil also (known as CBD) is to be available over the counter from pharmacies. Refer TGA website
Below we give you a list of the top cannabis related companies in Australia, if you are looking to get a kick (and some profit) outta investing in this still fresh niche. It’s a budding industry right now with risks inherent for any new industry that is just starting to develop.
The regulatory body for therapeutic goods in Australia called TGA released draft decisions on the poison’s standard, released today – which would see CBD products deemed Schedule 3 items, meaning they require consultation with a pharmacist to get but no prescription as per a update on smh today. Right now only companies with approved drugs under this “schedule 3” poison scheme rating would be able to benefit from this new rating.
In other conditions on this formulations, advertising of these drugs is banned and the medicine has to be in tablet form, not vaped or topically applied.
List of Cannabis Related Stocks in Australia
[Stock Prices & Market Cap are as of publishing date]
CAN.ASX $0.445 – CANN Group
Official Listing date: 4 May 2017
Market Capitalisation: $115.67 (*Comsec figures)
Cann Group Limited (CAN) is the first Australian company focused on breeding, cultivating and manufacturing medicinal cannabis for sale and use within Australia. The company has established research and cultivation facilities in Melbourne and is striving to provide access to medicinal cannabis for Australian patients.
It is the first company to receive Australian licences to research and grow medicinal cannabis
MDC.ASX – $0.16 Medlab Clinical
Official Listing date: 14 Jul 2015
Market Cap: $44.75m
Medlab is looking promising with sales looking up for its NanaBis mouth spray. MedLab also has an Observational Study underway with hundreds of patients enrolled to review the impacts of NanaBis on their health over a 12 months period, and as of February it was developing protocols for a Phase 3 trial to be used in Australia and the USA.
ATH.ASX – $0.53 ALTHEA GROUP
Official Listing date: 21 September 2018
Market Capitalisation: $123.65m
Althea Group Holdings Limited (AGH) is an independent health technology service provider focused on the sales and distribution of medicinal cannabis products along with the development of a manufacturing and cultivation facility.
Althea also offers a range of education, access and management services to support eligible patients and healthcare professionals in navigating medicinal cannabis treatment pathways. It currently operates in Australia and the United Kingdom. Its price has been up/down lately.
LGP.ASX – $0.26 Little Green Pharma
Official listing date: 20 February 2020
Market Cap: $20.12m
Little Green Pharma Ltd (LGP) operates in the medicinal cannabis industry. Medicinal cannabis is defined as cannabis products used under recommendation by a medical professional for a defined medical condition.
THC.ASX – $0.26 THC Global
Official listing date: 4 March 2017
Market Cap: $45.75m
In May 2020 when THC announced it had acquired cannabis clinic network Tetra Health for $3 million. They are trying to get in on the action with partnerships across the Tasman Sea.
THC Global Group Limited (THC, The Hydroponics Company Limited) is a diversified global cannabis company with primary operations in Australia and Canada. THC Global own and operate end to end commercial medicinal cannabis production facilities under Australia’s cannabis regulations.
THC Global also owns and operates a turnkey cultivation solutions provider, including a hydroponics equipment and supplies wholesaler and retailer servicing the rapidly expanding cannabis sectors in North America and Europe.
AC8.ASX – $0.145 AusCann Group
Official Listing date: 3 Feb 2017
Market Cap: $45.97m
AusCann Group Holdings Ltd (AC8, formerly TW Holdings Limited) is a Perth-based company engaged in the development of a stable, reliable dose form cannabinoid pharmaceutical product and preparing for its clinical trials
MMJ.ASX -$0.097 MMJ GROUP HOLDINGS LIMITED
Market Cap: $22.31m
MMJ Group Holdings Limited (MMJ) is a cannabis investment company. MMJ owns a portfolio of minority investments and aims to invest across the emerging cannabis-related sectors including sector investments for returns from capital appreciation, investment income, or both.
Some other companies in this cannabis sector are IDT Australia Limited, CBT Labs Pty Ltd, Medcan Australia Pty Ltd, TasCann Limited.
At the end of 2019, a total of 92 licences have been issued by the Australian government for cannabis production, New Frontier Data said in a July 2020 report on Australia’s medical cannabis market.
The successful licence holders for cannabis cultivation is responsible for all elements of security for activities conducted under licence or under permit. In the event of a security breach, regardless of how it occurred, the licence holder is responsible for satisfying the Department of Health that security principles and practices in place are sufficient to allow the continuation of licence related activities.
Australian Licenses Granted For Cannabis Companies
There are two types of licenses granted in Australia by the office of drug control to Cannabis companies.
- Medicinal Cannabis Licence
- Cannabis Research Licence
Companies can avail of both licenses at the same time if they meet the required criteria.
In Australia, access to medical cannabis remains restricted, doctors must make an application to the Therapeutic Goods Administration’s Special Access Scheme including clinical justification for a prescription for cannabis or many cannabis related products. The recent over the counter availability ruling for low-dose cannabidiol (CBD) formulations suggests the authorities have accepted that these formulations won’t do any harm for less serious conditions.
Medical cannabis is not subsidised under the Pharmaceutical Benefits Scheme (PBS) so can be expensive costing users’ substantial amounts to use it.
Relaxing of use for medicinal purposes and entry of more companies into this niche can reduce prices further.
The first country that legalized marijuana completely was Uruguay in 2013, whereas Canada followed suit last year. At the moment, the USA is still pondering complete legalization while Australia is slowly opening doors for medicinal use.
Claire Aitchison from independent investment research has written a nice update on the medical cannabis stocks in Australia and where they at right now on 12 Nov 2020.
In Australia, with a host of companies developing new products not necessarily CBD products and not a very large market for this, time will tell who can win market share and establish themselves in this niche.