Shares in medicinal cannabis hopeful Cann Group Ltd (ASX: CAN) smoked the ASX today to climb 15% to a record high of $1.20 despite the business releasing no news to the market.
Other pot stocks like MMJ Phytotech Ltd (ASX: MMJ), Creso Pharma Ltd (ASX: CPH) and Zelda Therapeutics Ltd (ASX: ZLD) have all risen meteorically as speculators bet on rising share prices as much as the potential for a share of future profits.
The Cann Group raised $12.5 million at its 2017 initial public offering and has received licenses from the government to grow cannabis in Australia for patient use. It also has two cannabis research permits, with the first plants at its Melbourne facility due to be harvested this month.
In July, Canadian pot business Aurora Cannabis Inc. took a 19.99% stake in Cann Group and this combined with its legally-approved status is what seems to be fueling the explosive share price.
As yet Cann Group has no revenues and posted an operating cash loss of $1.07 million for the quarter ending June 30, 2017, with cash on hand of $13.3 million. At $1.20 per share it now has a market value around $120 million, despite only being valued at $30 million at its IPO stage just three months ago.
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