Althea Group Holdings 

Recently Listed on ASX: Althea Group Holdings Limited (ASX: AGH), a Melbourne-founded company, got very recently listed on ASX at 56 cents, which is a premium of 36 cents (180%) from its listing price of 20 cents. The company raised $19.65m in heavily oversubscribed Initial Public Offer (IPO) majorly supported by institutional investors and current strategic shareholder Aphria Inc. Through an exclusive product supply agreement with Aphria, AGH has commenced import and supply of five Althea branded medicinal products to eligible patients in Australia in cannabis oil and dried flower form. The company has achieved the first stage of its business plan after the generation of sales revenue from May 2018. The proceeds from the funds raised through an IPO will be used to increase brand awareness for its medicinal cannabis products and also will be used to fund the design, construction, commissioning and completion of a fully scalable 4,080m² medicinal cannabis cultivation, extraction and manufacturing facility. Moreover, AGH plans to commence the construction of a 4,080m² cultivation, extraction and manufacturing facility on a 10-acre parcel of land in Skye, Victoria. This facility is expected to produce approximately 3 tonnes of cannabis each year. However, the company can do after receiving the required planning and building approvals and certain regulatory licenses and permits. The relative strength indicator for the AGH stock indicates the same to be in an overbought zone. Given the spike in stock price which is now at a higher level, we have a wait and watch approach on the stock while it trades at the current price of $ 0.665 (up 18.7% on September 24, 2018).
 

AusCann Group Holdings

Progressing towards releasing the company’s first medicinal cannabis products during FY19: AusCann Group Holdings Ltd.’s (ASX: AC8) stock has fallen 20.32% in three months as on September 21, 2018. In FY 18, the net loss was down 46% from last year due to incurring of $7.159M in the prior year for costs associated with listing on the ASX. However, post FY18, AC8 raised over A$35 through placement of shares and is well funded to meet its strategic goals. Further, the company is progressing towards releasing the company’s first medicinal cannabis products during the FY19. Meanwhile, AC8 has also commenced trading on the US OTCQX Market under the stock symbol ACNNF. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.980 while the speculation in the sector has led technical indicators fall outside the buy zone.
 

Cann Group

Working towards Phase 3 expansion facility: Cann Group Ltd.’s (ASX: CAN) stock has fallen 4.61% in three months as on September 21, 2018 after 82.61% rise in net loss in FY 18. The stock was further down by 4.48% on September 24, 2018. However, the company has raised funds of approximately $78 million at a price of $2.50 per share in FY 18. At the end of FY 19, it is expected that the construction on the Phase 3 expansion facility will be well underway.Therefore, based on the foregoing, we give a “Speculative Buy” recommendation on the stock at the current price of $ 2.770 while the relative strength indicator stands at neutral state but stochastic indicators have reflected already an oversold scenario.

FY 18 Financial Performance (Source: Company Reports)
 

Elixinol Global

Increasing the ownership in Elixinol Japan to 50.5%: Elixinol Global Ltd.’s (ASX: EXL) stock fell 5% on September 24, 2018 after the company through its wholly owned subsidiary, EXL International Holdings, is investing to increase its ownership in a newly restructured Japanese CBD and hemp foods business, to be named Elixinol Japan to 50.5% from the current 10% for A$2.2 million. The company is investing cash to provide working capital to enhance the business for expected growth in the Japanese market for hemp-derived CBD, foods and skincare. Meanwhile, EXL stock has risen 33.33% in three months as on September 21, 2018. The company has commenced trading on the OTCQX Market in the United States from 18^th September. EXL was listed on ASX in January 2018. Based on the prospects ahead, we give a “Speculative Buy” recommendation on the stock at the current price of $ 1.900 while daily moving averages also illustrate a buy scenario post the recent falls.
 

Medlab Clinical

Granted a Licence to Export: Cannabis Medlab Clinical Ltd (ASX: MDC) recently received a License to Export Cannabis from the Office of Drug Control (ODC) Canberra, Australia, for its 2 pioneering cannabis-based medicines, NanaBis and NanaBidial. Both the products use MDC’s patented NanoCelle delivery platform, that allows the delivery of nano particles of the active pharmaceutical ingredients into the side of the cheek. The company has also recently received preliminary results from the University of Sydney’s Nano Institute, School of Pharmacy that validated the science behind the NanoCelle delivery platform. Meanwhile, MDC stock has fallen 11.76% in three months as on September 21, 2018. Based on the foregoing, we give a “Speculative Buy” recommendation on the stock at the current price of $ 0.440.

 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.