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Another Trading Halt my friends!!! What could this mean???Also on the ASX exchange site, I believe it sais they partnered with another company!!! Fingers crossed, Halt is until Friday or when the news release is out.
I see now, .44 on the ask, break the 22,000 ask and it should gap up to .55!!
Large spread on the B/A right now. Im down around 15k on this, but in 2-3 years it should be a big winner down under.
How can it be up 1%+ in Australia, yet down 13% in the US on the OTC... I smell something fishy going on with the MM's!!
Australian Cannabis Stocks Go Haywire Amid Secretive License Grants
JOE WILSON
May 8, 2017
Investors in Australian medical cannabis have been riding a rollercoaster this month. Stocks across the board took heavy hits at the beginning of last week, with shares of some industry upstarts, like small-cap Stemcell United (ASX: SCU), falling as much as 20%. By the close of trading on Friday afternoon, however, a few cannabis companies had turned it around in a big way.
What’s behind the volatility? It may come down to cultivation and manufacturing licenses—specifically, who has them and who doesn’t.
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5 Questions to Ask Before Investing in Australia’s Cannabis Boom
Although the national Office of Drug Control doesn’t publicly disclose license holders, AusCann Group Holdings (ASX: AC8) announced on Friday, after a trading halt, that it had secured one such license. Its stock surged from $0.58 to $0.68 on the back of that news, even though the company hasn’t announced whether it’s secured a permit needed to actually grow cannabis. Until it does, the company will have to import medicines from its Canadian partner, Canopy Growth Corp.
AusCann is one of two Aussie companies to have announced that their license bids were successful. The other—the first to obtain such a license—is Cann Group Limited (ASX: CAN), which listed Thursday at just $0.30 a share. By the time markets closed Friday, the share price had more than doubled, to $0.66. Like AusCann, Cann Group will still need a permit to grow cannabis, which it hasn’t yet applied for.
While these two stocks came out strong at the end of the week, it was a different story for MMJ Phytotech (ASX: MMJ), which closed at $0.41 a share, down from a 52-week high of $0.77, which it hit at the end of March.
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Cannabis Stocks 101: What to Know Before Investing
How important is licensing to the success of an Australian cannabis company? How many licences have been granted? The Office of Drug Control began accepting applications for licences to cultivate, produce, research, and/or manufacture cannabis products in November 2016. Earlier this week, the office released some statistics about those applications:
As of April 30, 2017, the office has received 63 total applications among all three license types. Of those, seven have been approved and roughly a quarter were subsequently withdrawn. The remainder are under assessment.
Four medicinal cannabis licenses have been issued. These allow a license holder to cultivate cannabis for medicinal use in human clinical trials or as a prescribed medicine through the Special Access Scheme or Authorised Prescriber Scheme, programs that allow qualified patients to obtain medical cannabis.
Two cannabis research licenses have been issued. Thes authorize the cultivation and production of cannabis for medical research purposes.
One manufacturing license has been issued, authorizing the licence holder to manufacture medicinal cannabis products.
One permit has been issued to a medicinal cannabis license holder, authorizing them to plant cannabis seeds.
Two permit applications are likely to be finalized in the coming days. These will dictate the size and type of crops the license holders are permitted to grow
Investors considering a plunge into the volatile cannabis market should consider that having a license to cultivate cannabis is just the first step on a long road toward actually turning a profit. The Office of Drug Control expects that domestic supply come online by mid to late 2017, although some in the industry have called that goal optimistic, noting that licensed businesses build facilities, secure permits, and manufacture pharmaceutical-grade products.
Alpha Investments
Is AusCann The Australian Canopy Growth Corp.?
May. 5, 2017 11:53 AM • ACNNF
Summary
AusCann is one of the leading lights in a crowded Australian medicinal cannabis market.
We believe its significant ties with Canopy Growth Corp. have positioned it perfectly to capitalise on the deregulation of medicinal cannabis.
AusCann was granted a licence to cultivate its own cannabis today, making it just one of a handful of companies able to do so.
As many investors will be aware, one of the latest countries to be swept up in pot stock mania is down under in Australia. A great number of Australian pot stocks have hit the bourse in recent months aiming to become the next Canopy Growth Corp. (OTCPK:TWMJF). While there are many pretenders, there are a few with a genuine chance of making it big. The one that we think is the pick of the lot is AusCann (OTCPK:ACNNF).
Why AusCann?
First and foremost, it is worth pointing out that AusCann has significant ties to Canopy Growth Corp. Not only is Canopy one of its largest shareholders but it has also granted the fledgling medicinal cannabis company with royalty-free access to its expertise and intellectual property in the cultivation, manufacture, and the supply of high-quality medicinal cannabis products. We see this as a huge win for the company. Canopy has been there and done that. And, done so in a very successful manner, we might add. Together with AusCann's strong management team, we think this is a recipe for success.
But what is success?
Success for AusCann will be formulating medicinal cannabis products that treat chemotherapy-induced nausea, treatment-resistant childhood epilepsy, palliative care symptoms, and last but by no means least, chronic pain.
Source: Company presentation
Its use in chronic pain is something which we have a keen eye on. Although a smaller market than in Canada, A$5.8 billion is still not to be sniffed at. Especially with the current number one treatment option, opioids, increasingly leading to abuse and more expensive. If medicinal cannabis can become the dominant treatment option for chronic pain in Australia, then AusCann stands to benefit greatly.
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It won't be easy
But there's still a long road ahead for the company and a number of hurdles to clear. One such hurdle, which will undoubtedly take a lot of hard work to overcome, is the middle man - doctors. Convincing doctors to prescribe medicinal cannabis will not necessarily be easy. A lot of general practitioners are cautious on medicinal cannabis and will need to be educated on the benefits. Without them on side, the company will face an uphill struggle to get its product in the hands of patients.
Once again, this is where the Canopy Growth Corp. relationship becomes invaluable. Canopy wasn't overly successful at doing this for a long time, hence why the company acquired Mettrum Health for $430 million. In our opinion, Mettrum was head and shoulders above Canopy at connecting with doctors. By acquiring the company, it not only gained access to its vast network of doctors but also the technical know-how to successfully connect with doctors and effectively promote the use of medicinal cannabis. This knowledge has now been passed on to AusCann. As a result, later this month, AusCann will embark on its own medical education program. It plans to bring in leading doctors in the field from Canada to present seminars to groups of Australian doctors. We believe that this and the growing interest in the drug from patients will increase its overall appeal.
Don't forget DayaCann
While Australia is the key market, in our opinion, it's not the only place where the company is active. A joint venture, named DayaCann, in Chile, with not-for-profit Fundacion Daya, has been encouraging thus far. DayaCann recently harvested its first crop with some promising results. Approximately 400 plants will be harvested, yielding over 300kgs of dried cannabis buds. These will be processed into medicinal cannabis formulations to be used for clinical trials in Chile and sale to third parties. The Chile market, along with neighboring Argentina, is seen by AusCann as significant opportunities, and we agree.
Pleasingly, though, the company can now concentrate on harvesting crops in Australia in the near future. Today, the company announced that it has been granted a license to cultivate medicinal cannabis in Australia by the Office of Drug Control. This gives the company a huge advantage, in our opinion. Whilst it is not the first (Cann Group was the first), it is one of just a handful that have been granted a license. If the company can successfully leverage its relationship with Canopy Growth Corp. and the knowledge gained from its harvest with DayaCann, then we see it gaining an invaluable first-mover advantage in the Australian market.
Is this a long-term investment?
Australian pharmaceutical stocks have a tendency to trade at 4 times sales. With the local chronic pain market alone worth A$5.8 billion, we believe there is significant room for its share price to grow in the future. If AusCann could command just 5% of the chronic pain treatment market, it would generate sales of A$290 million. This would justify a market cap in excess of A$1.1 billion, based on a price-to-sales ratio of 4.
But it will be some time before the company generates revenue. Our best-case scenario sees revenue generation commence in 2018, but we feel investors should be prepared to wait as far ahead as 2019 for significant revenue generation. With a cash position of A$4.488 million and cash outflows of A$925,000 expected during the next quarter, there is a fair chance that a further capital raising will need to be undertaken. This is something that investors should consider before making an investment.
Overall, this is a reasonably speculative and high-risk investment, but in a balanced portfolio, we feel it is worth considering today.
No worries. Enjoy.
Thanks for the answer I never would have guessed that.
Western Australia
Well I gotta ask what is WA..... Washington here but what in that article?
Thanks for the post OSO!
JAX
Green light for medicinal cannabis in WA
May 5, 2017 7:02pm
Cathy O'LearyPerthNow
AUSTRALIAN drug regulators have granted what is believed to be the first licence to grow medical cannabis in WA.
AusCann, whose chairman is former WA Federal Liberal MP Mal Washer, will announce today that it has approval for a secure outdoor cultivation facility in WA, and hopes to have its first locally grown product ready next year.
The licence was granted by the Office of Drug Control and makes AusCann one of only a few companies to be given approval in Australia.
Until its cultivation facility is operating in WA, the company will import medical cannabis from Chile in partnership with Canopy Growth Corporation, one of Canada’s biggest medicinal cannabis companies.
AusCann managing director Elaine Darby said it was a major milestone in the company’s bid to be a leading supplier of high quality and affordable medicinal cannabis for Australian patients.
She said there would be a major focus on educating doctors about the potential uses of the product.
The company was bringing Canadian medical cannabis expert Danial Schecter to Perth this month to give an educational talk at the University of WA Club.
“We’re not saying it is suitable for all patients but there is good evidence about the use of cannabinoid medicines for indications such as chronic pain,” Ms Darby said.
“There are a considerable number of people who could benefit from a treatment where the side effects are quite low.”
Australian Medical Association WA president Andrew Miller said he was sceptical about the demand because he believed only a small number of patients could benefit from medicinal cannabis.
“People have to understand that it’s not cannabis, it doesn’t have the THC that gives people a high,” Dr Miller said.
“We’re not prudes, we’re just scientists.”
Post #473 should shed some light on your issue.
JAX
I saw on another board that acnnf will be in a trading halt on Monday may 8th... anyone know if this is true?... and what does this mean/reason/why/?... everyone have a blast of a weekend...acnnf long glta
Haha! Thanks Jax! Could barely fit my 'nads through the door this morning. I luckily averaged down when it hit 0.42usd and as I've said many times, I'm holding for 2-3 years or until it's $2-$4. I bought a house instead of investing in canopy when it was $1.50!!! I won't be making that mistake again.
Big Balls Baby!!! GLTY
JAX
But not impossible.
JAX
Germany up on deck!!! Next!!!
JAX
Can you hear us NOW!!!!! All you naysayers. We've got the darling of the Australian cannabis industry.
ACCUMULATE people, because I strongly believe it's in my and our best interest, thus the funny manipulation going on the last few day's. I believe some were in the know and was trying to manipulate the price down.
Well.. it looks the train has left the station for the time being. ALL ABOARD!!!!!!!!
JAX
The Auscann Group Holdings Ltd (ASX: AC8) share price has skyrocketed this morning after emerging from a trading halt.
In early trade the pot stock is up a massive 22% to 71 cents.
What happened?
As I mentioned yesterday, AusCann’s shares went into a trading halt pending an update on its Australian operations.
This morning the company released its update advising that it has been granted a licence to cultivate medicinal cannabis in Australia by the Office of Drug Control, making AusCann one of only a few companies to be granted a licence.
This means AusCann can now undertake cultivation of medicinal cannabis at its Western Australia site, putting it in a strong position to deliver on its aim of becoming a leading producer and supplier of high quality medicinal cannabis to Australian patients.
Should you invest?
Whilst this is undoubtedly great news and a huge step forward for AusCann, let’s not forget that there is still a long way to go and an investment in the company does carry high risks.
There is an awful lot of future growth potential built into its share price at the moment and eventually the company will have to deliver on it. Failure to do so could result in a sharp drop in its share price.
Thankfully for the company it does have an experienced management team and the shared expertise of C$1.5 billion medicinal cannabis producer Canopy Growth Corp to help it on its way.
The next step for the company will be to educate doctors on the benefits of medicinal cannabis. To do this the company has initiated a medical education program and will bring in leading doctors in the field to present seminars to Australian doctors later this month.
While things certainly do look very promising for the company and the industry as a whole, I would suggest investors keep Auscann and its peers Zelda Therapeutics Ltd (ASX: ZLD) and CANN GROUP FPO (ASX: CAN) on their watch list for now.
Nope they are up and trading. 1.6 million shares in the first 20 min. Open at .71
R they halted still?
Well you got your License Approval. Still hoping on the Canopy Buyout Lol. But shares should go crazy today!
It's Friday in Australia, hopefully they resume the trading. Thanks for your great advice and words of wisdom. I held onto my shares because of you.
Yes!!!!! The bid price on the ASX sais .75 . But the Halt hasn't been resumed yet. So curious to see what they open at???
GREAT NEWS, Our company has been awarded their Australian Medical Cannabis Licence...
I can't handle the suspense. I'm dying to find out what it is??? OMG, $2.00 a share would make me soooo happpy. Lol
I hope we make it to number #1 on the breakout board come monday, sounds like a long haul...
My question will be how people are still able to trade the stock even with the halt
License approval AND a canopy buyout... lets get this sucker over $2 next week then I can retire to Hawaii!!!
Haha, wishful thinking eh, I'll do some digging and ask some friends in Australia, but I've heard the same so far, either dilution (which seems like a bad idea right now) or license approval, with the first commercial shipment to Australia completed, my guess is they have a license now and they'll import for the next 3-5 months until their local harvests are complete. That's the story that makes sense in my head... dilution afterthe SP has taken a beating... just doesn't seem like a good move and they have some good heads on the board. Including Bruce!
I've staked 50% of my portfolio on Auscann (for the LONG term, 2-3 years) so let's hope for the best!
investing.com is showing a bid of .68 I can't say if that is accurate but here it is
https://www.investing.com/equities/tw-holdings-ltd-financial-summary
AusCann Group Holdings (ASX:AC8) has been granted a trading halt by the ASX, pending an update to the Australian operations.
The halt will remain in place until the opening of trade on Monday 8th May 2017, or earlier if an announcement is made to the market.
Some folks in aussie strongly believe it's either License approval on the upside or issuing more shares on the downside.
I wonder if it might have anything to do with this shipment from Canada to Australia that arrived this week...
http://www.abc.net.au/triplej/programs/hack/first-medicinal-cannabis-shipment-arrives-in-australia/8494576
I knowwww, any bets on what it might be?? Canopy Acquisition? Lol
We need a little boost! C'mon AusCann....
Wow that's a loooong hault!!
Trading Halt for Auscann???? Wonder what the News Release is gonna be. They will resume on Monday May 8th. Let's go Auscann!!!
Bummer, was looking at a nice recovery before the bottom fell out. Waiting for news on the Chile harvest.
Looks like a small bounce recently but down today on the AUX, perhaps some more downside in the short term? I've averaged down twice but only so much to throw at this. More of a set it and forget it and hope to come back in 1-3 years with some real gains. $2-$4 USD should be the goal.
How high is too high for Australia's cannabis stocks?
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Patrick Hatch
4 hrs ago
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Perhaps it shouldn't be surprising that wacky things keep happening in Australia's nascent legal cannabis industry.
Take for example ASX-listed biotech Stemcell United's share price. Last month it skyrocketed 3800 per cent – from just over 1.3¢ to 41¢ – in less than two days.
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It wasn't a groundbreaking scientific discovery in the field of medicinal marijuana that turned the Singapore-based biotech from a $5 million company to one with a $145 million market capitalisation virtually overnight. Indeed, the company hasn't even entered the field.
The astonishing price run was sparked by the appointment of a new a "strategic adviser" to help the company "assess opportunities" in the sector: Nevil Schoenmakers.
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This is the excitable global environment for investment in cannabis spurred on by both changes in some American state allowing for recreational consumption and reforms in Australia allowing its use for medicinal purposes.
Suddenly everyone wants a slice of an industry that is already worth billions.
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Illustration: Simon Bosch
Illustration: Simon Bosch Photo: GOS
The reaction to Shoenmakers' appointment is thanks to the Australian/Dutch dual national's legendary cannabis breeding reputation – fans lauded him as "The King of Cannabis" and the United States try to extradite him from Australia in the early 1990s. Arrested in Perth, he posted bail and then disappeared.
The founder of Australia's first listed medical cannabis company, Ross Smith, is only a few shades less colourful.
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AusCann managing director Elaine Darby says there is an incredible amount of hype in the cannabis industry.
AusCann managing director Elaine Darby says there is an incredible amount of hype in the cannabis industry. Photo: supplied
He floated Phytotech (now MMJ Phytotech) on the ASX in January 2015 to a roaring response – climbing from 20¢ on issue to 92¢ on their second day – only to resign as executive director two weeks later over a threatening social media rant. Smith said his Facebook account had been hacked.
Investors attracted
But despite these antics the industry has been too attractive to resist for some investors.
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Perth-based medicinal marijuana company Phytotech Medical is on the rise.
Perth-based medicinal marijuana company Phytotech Medical is on the rise. Photo: Gary Malerba
To give a sense of scale consider that medical marijuana sales hit $US4.9 billion ($6.5 billion) in the United States last year and will reach $US7.3 billion in 2020, according to research by marijuana investment group Archview.
The local industry is a fraction of that size but investors have still thrown money at Australian players since the growing of cannabis for medicinal use and research was legalised in February 2016.
America is the Wild, Wild West: there are no standard set of rules that apply.
BuddingTech Adam Miller
"We get phone calls all the time from people wanting to invest in the industry," says Merchant Funds managing director Andrew Chapman, whose small-stock fund has about $10 million invested across four local medical cannabis companies.
"The reasons why the shares have done so well over the last six to 12 months is there's a lot of money chasing the theme, but there's just not many homes for the money to go into."
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A government facility for growing medical marijuana in Israel.
A government facility for growing medical marijuana in Israel. Photo: Getty Images
A handful of the Australian companies seeking to cultivate or manufacture medical marijuana in Australia are listed on the ASX, and nearly all have outperformed the wider market by a considerable margin this year.
Shares of three of the largest cannabis pure plays – AusCann, Zelda Therapeutics and MMJ Phytotech – each grew by more than 150 per cent in the past six months. The All Ordinaries Index on the ASX has lifted 12 per cent.
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World-renowned cannabis breeder Nevil Schoenmakers.
World-renowned cannabis breeder Nevil Schoenmakers. Photo: Supplied
Sales question
The local industry shouldn't expect runaway sales growth like that seen in the United States, where individual states have legalised use of the drug, says Adam Miller, founder of medical cannabis technology and innovation accelerator BuddingTech.
"America is the Wild, Wild west: there are no standard set of rules that apply," he says.
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Preparing Cannabis oil for medical use.
Preparing Cannabis oil for medical use. Photo: Rohan Thomson
"They have a significant medical market but none of the products that are being sold there have gone under any clinical trials, there's no standardisation."
Miller says that while it is delivering eye-watering sales figures at the moment, most of the US industry would be shut down overnight if the federal government there put an industry framework in place that abides by the United Nations Single Convention on Narcotic Drugs.
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Federal Health Minister Greg Hunt relaxed import laws in February.
Federal Health Minister Greg Hunt relaxed import laws in February. Photo: Justin McManus
Australia on the other hand has gone by the book, he says, which means the market will grow slower but it will be compatible with a global market should it eventuate.
In California marijuana can be prescribed for a variety of conditions, including headaches or anxiety, and bought in a variety of forms. But Australian doctors can only prescribe the drug in pill or oil form and when there is scientific evidence that a certain product is effective for that condition. It is worth noting also that depending on the use the plants can be bred to virtually remove any intoxicating effects.
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Phytotech medical founder Ross Smith resigned as executive director following a social media furore.
Phytotech medical founder Ross Smith resigned as executive director following a social media furore.
State and federal governments and the Therapeutic Goods Administration are still deciding what medical conditions qualify, but medicinal marijuana has been used to treat people who have epilepsy, chronic pain, chemotherapy-induced nausea and HIV/AIDS.
Companies that want to grow, import or manufacture cannabis oils or tablets need to apply for a licence from the Office of Drug Control, which has so far issued four licences for growing, two for research and one for manufacturing.
Market potential
Despite these constraints, Miller says there is a significant market waiting to be tapped. A white paper BuddingTech wrote with the University of Sydney found there would be a patient portfolio of about 30,000 Australians with epilepsy, HIV and multiple sclerosis that would seek to use the drugs. Those alone would be worth $150 million to $200 million a year.
No producer has brought an Australian grown or manufactured cannabis product to the market yet, with a Victorian government trail the only cultivation for medicinal purposes currently under way, according to the Department of Health. Patients are instead taking imported products.
Meanwhile hopeful participants like AusCann, one of the largest cannabis companies on the ASX, are still waiting for their licences to be approved.
"Everyone can see the potential but we still have this uncertainty," says AusCann managing director Elaine Darby.
AusCann has just harvested its first crop from its growing facilities in Chile. The majority will be used in clinical studies which, if successful, will mean AusCann can register those products and sell them there in about 12 months time.
Regulatory hurdles
With the opening up of the local market Darby says the company plans to be growing about two hectares of cannabis in Australia by the middle of next year. It will then need to take its produce to trial to prove it is an effective treatment for specific conditions before doctors can prescribe it.
In the meantime AusCann will start importing produce from Canadian company Canopy Growth, which is the largest manufacturer in North America and also AusCann's largest shareholder, with a 10 per cent stake.
Federal Health Minister Greg Hunt's move to relax importation laws in February sent AusCann stocks up 24 per cent.
While jumping through regulatory hoops is slowing the process, Darby says the biggest challenge facing the industry is convincing doctors to prescribe cannabis medication.
Because medical cannabis is not approved by the Therapeutic Goods Administration, doctors need to become an "authorised prescriber" of cannabis, while also complying with a layer of state-based rules – a process Darby says is onerous.
"The market potential is massive: if you look at chronic pain alone, that's conservatively a $5 billion market sitting there," she says.
"But at the end of the day you need to get the doctors to prescribe. If you look at Canada there were only a handful of doctors prescribing, there's now in excess of 300 prescribing and well in excesss of 100,000 patients and that's all happened in a couple of years. But if you look at their initial growth, it was very slow."
Manufacturing potential
MGC Pharmaceuticals has also been preparing for legalisation in Australia, and has set up trial operations in Slovenia while tapping expertise from Europe and Israel in anticipation of the local market opening up.
"My view was that this industry was going to happen, it was just a question of if it was going to be one year or 10," says executive chairman Brett Mitchell.
Earlier in April it successfully started extracting cannabinoid resins from plants at its facilities in Slovenia and is taking part in a clinical study to discover if the drug can reduce the number of seizures experienced by children with epilepsy.
With legalisation, MGC is bringing its expertise in breeding, extraction methods and manufacturing of the end products to Australia, with joint ventures with a major east coast university and a hospital close to being inked.
Mitchell says it will have a set-up in Australia similar to that in Slovenia within a year. But as anything produced will need to go through clinical trials, Mitchell says he can't make revenue projections.
The uncertainty around when these companies will start generating meaningful revenue from medicinal cannabis has not dampened investors' enthusiasm.
Wariness wise
But Zach Riaz, director at the Banyan Tree Investment Group, recently compiled a report on the state of the local industry and warned that while it will be a significant and profitable industry in years to come, some share price growth of ASX cannabis companies is getting ahead of fundamentals.
"I think investors need to be be a bit wary," he says.
"These guys are in their early stages … there's a lot of studies and trials that need to be conducted successfully before any of this can be commercialised and sold."
That expensive process could require capital raising, he says, a further risk to investors, while just one or two unfavourable results in the scientific trial could cause a company's share price to be "absolutely smashed".
"What their best chance is, and I'm pretty sure most of these guys are hoping for, is a big pharma company coming in to take them out."
Chris Macdonald, principal and investment adviser at Morgans Chatswood, notes that most of the stocks have fallen off from highs in March and had arrived at a "happy medium"."The government awarding licences a couple of months ago is what really set off the current hype, and like all of these bubbles they do run out of steam," says Macdonald, who has advised companies in the industry.
"People are still paying quite high multiples for these stocks that are pre-revenue, or certainly a number of years away from profitability because they're happy to bet on the fact that over the next three to five years they could potentially have access to very, very large revenues."
'Out of control'
Chapman says Stemcell United's "out of control" share price fluctuations (it has since returned to 11¢) risked damaging the reputation of the whole industry.
"Unfortunately, mum and dad investors get hurt in that," he says.
"We shouldn't be seeing that sort of stuff any more and I'm hopeful that we don't because it takes a bit of that credibility off the actual industry."
Chapman says his fund was one of the first backers of the industry, investing in Phytotech, the first to list on the ASX.
While Phytotech had a volatile start to life, jumping in value more than fourfold to 92¢ in its first two days trading and plunging back to 28¢ when its founder Smith quit following the social media scandal, it was now trading at 62¢.
"So it wasn't a flash in the pan," says Chapman.
"And now as the industry is maturing, and as the investors within the industry are maturing as well and understanding what goes into making a successful medicinal cannabis company, we should see less and less of that sort of behaviour."
Even Darby, from AusCann, says investors need to take a cautious approach when there was so much "hype" around the industry.
"I don't know how well thought over or considered it is by investors at the moment," she says, adding that AusCann has be careful to outline realistic potential growth for the company.
"Unfortunately the nature of this particular industry, just because of what it is, attracts some very interesting individuals. And then you've got some on the other side that are just after a buck at the end of the day: they're going to sprout any kind of idea and let it do a run. There is an just incredible amount of hype, for sure."
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Had to be a reversal soon and find a floor. I've sold my canopy to invest in Auscann. Averaging down hopefully below .50 us if I can get that good a price. Selling at $2-$4 for a tidy profit hopefully one day.
Up 2.7% in Aussie land right now. Could be a miracle Green Day
High risk/High Reward as long as you understand that this is very speculative. We are in early, as I was with Canopy, but sales must commence soon to prove that they have a real business. Also, whoever said that Canopy might buy them is clueless, Canopy buys land and production, however, they can certainly help Auscann succeed.
I'm currently down about $15,000 US on this one stock. I bought a lot of shares though, I'm one of the people not selling at all. If I was going to I would have sold at .55 usd at a much smaller loss but I'm here for long term capital gains. I'm pretty certain that it'll be over a dollar at some point in the future. I have a small bit of funds left to throw at this, anything below .38 usd and I'll average down a little.
As has been said, not much interest after the initial pop and mix in that the whole sector is down as well and we see the reason for such a big pullback.... not much volume though which suggests it could be MM's having a little dig to get cheaper shares and shake the tree.
Worst case scenario is that canopy fully buys them out and we get a premium on shares and have a nice chunk of canopy to add to our portfolios. Id like to see $4 before I sell but I'd take a buyout happily too.
I'm looking to add more when it does hit bottom. Seems like that could be pretty soon. The low amount of volume while it's going down tells me that there are a lot of people who are not too concerned and are happy to be patient through this dip while waiting for it to bounce back up again.
There sure isn't any sign of panic selling. Just not a lot of buzz about this ticker at the moment to get people to slap the ask right now.
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