Stemcell United Ltd

SCU Details
 
Expanding service offerings in eligible Asian markets: Recently, Stemcell United Ltd (ASX: SCU) has signed a Letter Agreement with iCAN Israel-Cannabis Limited to negotiate and execute a mutually agreeable licensing and services. iCAN Israel-Cannabis Limited is an Israeli domiciled advisory and originator in relation to the development and commercialization of Medical Cannabis product and their delivery methods and related devices. It provides end to end services and will enhance SCU's capabilities and scope of business in Medical Cannabis field. ICAN will specifically assert an idea germination development and review through clinical trials and importantly the medical delivery systems; as well as the appropriate marketing and branding.   As per the agreement, iCAN Israel would offer services to the group with respect to their business operations in Asia, and an investment agreement would be made with the group for over 5% to 10% stake in ICAN. The deal will help SCU to explore and further expand its services offerings in eligible Asian market. Stemcell United is planning issue 25 million ordinary shares at $0.10 per share to sophisticated investors, and use these funds for their working capital and developments like scaling up dendrobium business and exploring opportunities in Cannabis business. Given the ongoing developments, we maintain a “Buy” rating on the stock at the current market price of $0.072

Auscann Group Holdings Ltd

AC8 Details
 
First medicinal cannabis crop harvested in Chile: During the June quarter, the Company completed its first harvest in Chile with over 300kg of dried cannabis buds which has been sent to certified manufacturing facility for processing into medicinal cannabis formulations. Pending successful clinical trials in Chile, formulations will be registered through the Chilean National Institute of Public Health for supply to Chilean patients and export markets. Moreover, this is an advancement in AusCann’s strategic growth plans and a significant step towards revenue generation. Further, AusCann completed a successful Placement of $12 million with strong interest from new and existing institutional investors, which will provide the necessary funding to advance its operations towards providing Australian patients with high quality and affordable cannabis medicines. As of 30 June 2017, AusCann’s cash position was approximately $15 million.
 
The Company continues to draw on Canopy Growth Corporation’s expertise in the cultivation, manufacturing and importation of products and has leveraged this across its Australian operation. Operations over the past quarter have seen South America become an attractive region for AusCann upon the completion of the first harvest in Chile. In addition to this, AusCann has seen significant operational advancements in Australia, with its strategic partnership with Tasmanian Alkaloids Pty Ltd and attainment of its medicinal cannabis license from the Office of Drug Control. We maintain a “Buy” recommendation on the stock at the current market price of $0.465
 
 
AC8 Daily chart; (Source: Thomson Reuters) 

Creso Pharma Ltd

CPH Details
 
Acquisition of Mernova: Creso is acquiring Canada based Mernova for the consideration of C$1.8 million (A$1.82 million) and three milestone issues of Creso shares to the value of C$8.3 million (A$8.38 million). Mernova Medicinal Inc.(Mernova) is a privately held company based in Halifax, Nova Scotia, and establishing a team of experts qualified to build the proposed cannabis growing, production and extraction facilities to Creso’s requirement of a GMP standard. Mernova has land available to construct an initial growing/production facility totaling 20,000 sq. ft., with plans to expand this to 200,000 sq. ft. Further, Creso also intends to build a state-of-the-art CO2 extraction facility that is fully GMP compliant at the Mernova site.  Moreover, the company is looking to establish a presence in Canada and to pursue opportunities in the medicinal as well as recreational cannabis space. Canada is one of the only legal jurisdictions in the world where it is currently possibly to make real money (revenue and profit) in the cannabis industry. It has a real and growing consumer market (medical and soon to be recreational) and a regulatory framework that facilities sales to consumers. Unlike Australia, where the existing regulatory framework makes it near impossible to get medical cannabis products into the hands of patients. The acquisition also gives Creso Pharma Diversification into the Canadian adult, medicinal and recreational use market from July 1, 2018 when recreational use is expected to be legalized in the Canadian market. Given the group’s strong pipelines and Asian market opportunity, we recommend a “Hold” on the stock at the current price of $0.485
 

CPH Daily chart; (Source: Thomson Reuters) 

Zelda Therapeutics Ltd

ZLD Details 
 
Zelda expands its breast cancer research collaboration:  Zelda Therapeutics Ltd (ASX: ZLD) has expanded its research collaboration with Complutense University, based on positive initial research results from its breast cancer research program. Zelda has reported positive results from its initial proof of concept study and follow-on studies on its pre-clinical research on cannabinoids as anti-cancer agents. The results showed several key findings, but most importantly that there were anti-cancer effects observed across a range of different breast cancer cell lines using Zelda’s formulations. The next stage of this research will continue with both in vitro and in vivo studies. These encouraging results have led to an expansion and extension of Zelda’s current research program with Complutense University, to investigate the effect of cannabinoids on cancer stem cell-like cells. These cells are cancer cells found within tumors that are self-renewing, causing tumor re-growths. Tumor reoccurrence is a common concern for women following treatment of breast cancer. Most of current anti-cancer therapies are primarily focused on trying to inhibit cancer cell growth, causing cancer cells to die, or a combination of both. We give a “Hold” recommendation on the stock at the current price of $0.068
 

ZLD Daily chart; (Source: Thomson Reuters)

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