It certainly has been a bright start to the week for the medicinal cannabis industry.
In morning trade a number of shares in the industry have pushed notably higher. Here's why these three are climbing:
The Auscann Group Holdings Ltd (ASX: AC8) share price is up 3.5% to $1.46 despite there being no news out of the leading medicinal cannabis company. Investors continue to snap up AusCann shares in the belief that it is the best-placed company in the space to profit from recent regulatory changes. I think investors are spot on with this one and believe AusCann will have a bright future ahead of it if everything goes to plan.
The MMJ Phytotech Ltd (ASX: MMJ) share price is up over 2.5% to 38 cents after the diversified cannabis company announced that it has invested C$1 million for an approximate 1.6% shareholding in privately held Fire & Flower Inc. According to the release, Fire & Flower Inc is a Canada-based cannabis retailer that plans to open 37 retail locations in the province of Alberta alone once permitted by regulatory bodies. This investment leaves MMJ Phytotech with a cash balance of A$1.8 million, which I suspect could mean a capital raising is around the corner. Unless it chooses to offload its Cannabis Wheaton shares.
The Zelda Therapeutics Ltd (ASX: ZLD) share price has jumped 9% to 12 cents after the cannabis-based biotechnology company released an update on its insomnia clinical trial. According to the release, recruitment for Australia's first clinical study of medical cannabis to treat insomnia is now complete. As a result, the next phase of the study will commence shortly at the University of Western Australia Centre for Sleep Science with patients undergoing baseline sleep measurements before commencing pharmaceutical dosing. Results are expected before the end of the year, with the company aiming to rapidly pursue commercialisation activities if the trial is a success.
