A few years ago the market was abuzz with excitement over ASX cannabis shares or pot stocks.
Since then, the effects have worn off and this side of the market has been getting very little attention.
That was until today when two ASX cannabis shares made big moves in opposite directions. Let's see what is causing the buying and selling.
Cann Group Ltd (ASX: CAN)
The Cann Group share price is up 7% to 4.8 cents on Wednesday after being given a boost from banking giant National Australia Bank Ltd (ASX: NAB).
According to the release, NAB has agreed to defer the quarterly interest payment and facility fee for its construction loan to a future date to be mutually agreed. The interest payment and facility fee total approximately $0.9 million and was due on 22 November.
In addition, the ASX cannabis share revealed that the bank is considering the deferment of the subsequent two quarterly interest and facility fee payments. Furthermore, NAB has confirmed its intention is not to call upon any of the outstanding loan balances during the period through to 29 September 2025.
Management notes that the deferment of up to three quarters of interest payments allows the company to accelerate its trajectory towards critical milestones of positive EBITDA, then positive cash flow.
Cann Group's CEO, Jenni Pilcher, commented:
NAB's ongoing support has been instrumental in positioning Cann for long-term success. This partnership underscores the shared commitment to the company's growth and operational excellence.
Little Green Pharma Ltd (ASX: LGP)
The Little Green Pharma share price is down over 7% to 12.5 cents.
This follows the release of the vertically integrated medicinal cannabis and psychedelics company's half year report.
For the six months, the ASX cannabis share reported a solid 36.8% increase in revenue to $17.5 million. This was driven by sales growth in both domestic and international markets and across most product categories.
However, this top line growth didn't flow through to its bottom line. Instead, its losses widened by 58.7% to approximately $3.5 million.
Though, it is worth noting that its adjusted EBITDA for the half-year was $266,000, which is up from a negative $511,000 in the prior comparative period. This was driven primarily by sales growth and early signs of economies of scale.
Following today's decline, Little Green Pharma's shares are now down over 20% since the start of the year.
