Auscann Group Holdings, as its name implies, has a well-established Canadian partner – Canopy Growth Corporation (TSE: WEED), the first publicly traded medical marijuana stock in Canada. Canopy holds an 11% interest in Auscann and its CEO has a seat on the Board of Directors as well. Canopy’s CEO and two of the Auscann board members have direct experience bring start-up companies to profitability.
Money is not yet an issue as the company has yet to begin to implement its commercialization strategy, beyond announcing its intent to import existing products from Canopy for sale in Australia. Canopy’s existing product line includes Tweed; Bedrocam; and Mettrum. Auscann states the Canopy products will be aimed at patients with chronic neuropathic pain, chronic pain, and treatment resistance epilepsy. All Canopy products are medical grade marijuana strains prescribed by physicians, primarily as an herbal pain reliever. Market potential is in effect controlled by the prescribing physicians.
Auscann also has a relationship with Murdoch University in Perth for research and development of, among other things, greenhouses to replicate optimum conditions for yield and quality consistency of medical cannabis compounds.
The Australian government has now made it legal to grow marijuana here, with the companies lining up to get cultivation licenses and minimise the costs of importing marijuana from countries where cultivation is legal. There are other ASX listed medical marijuana stocks from which to choose if you have a punter’s soul and more stocks to come. Longer term investors would probably be better off waiting until these companies begin to generate revenue from specific products. In addition, it strains credulity when some boldly claim they are going to crack the Canadian and US market where the competition is already ferocious, but who knows? A breakthrough discover of some kind could give Aussie companies an opening.
If you are inclined to take a punt, the combination of secure existing supply from Daya in Chile and established products from Canopy in Canada would seem to make Auscann a likely choice.......... This info is from an extremely lengthy article published a few days ago, I cut straight to the Auscann part.
