Auscann Group Holdings Ltd

AC8 Details
Secures medicinal cannabis licence: Auscann Group Holdings Ltd (ASX: AC8) stock price surged over 17.2% on May 05, 2017, post resuming trading after a halt placed on May 04, 2017. The group has been granted a licence from the Office of Drug Control to cultivate medicinal cannabis in Australia. This is a positive news for the company and makes it one among the select few companies to be granted a licence. Finding support from the group’s relationship with one of the largest producer of medicinal cannabis, Canopy Growth Corp, AC8 is now poised to execute its strategy in a more directional manner. Further, the recent milestones achieved along the licensed joint-venture in Chile are expected to make AC8 a leading player in the global medicinal cannabis market. The company is initially targeting the treatment of neuropathic and chronic pain, which have a combined market opportunity of over $5 billion in Australia alone. We give a “Hold” recommendation on the stock at the current price of $ 0.68
 

AC8 Daily Chart (Source: Thomson Reuters) 

Creso Pharma Ltd

CPH Details
Streamlining board and management structure:Creso Pharma Ltd(ASX: CPH) stock moved up 2.6% on May 05, 2017 and has rallied about 142.5% in last three months (as at May 04, 2017). The group is now streamlining its board and management structure following the appointment of its Australian based Chief Operating Officer, Mr David Russell, for exploring more opportunities and collaborations within Australia and Asia, while Dr Simon Buckingham has stepped down due to other commitments. 

Product Pipeline (Source: Company Reports)
 
Recently, the group along with Australian partner, Health House International Pty Ltd, successfully imported first medicinal cannabis products into Australia under the new Government Legislation. Particularly, a range of cannabis oils for human health from Canadian medical cannabis group, CanniMed have been imported and Health House will be distributing the CanniMed® products across Australia in compliance with Federal and State legislation. We give a “Hold” recommendation on the stock at the current price of $ 0.58
 

CPH Daily Chart (Source: Thomson Reuters) 

Zelda Therapeutics Ltd

ZLD Details
Successful in capital raising: Zelda Therapeutics Ltd (ASX: ZLD) stock price rallied 6.7% on May 05, 2017 owing to sector-driven sentiments, post a 15% fall in last five days (as at May 04, 2017). In the March quarter update, ZLD announced that $6 million oversubscribed capital raising to grow clinical pipeline for the development of new therapies has been successful. ZLD also executed a new licence agreement with Caziwell Inc., to pursue new opportunities in new indications as well as a permanent reduction in future milestone and royalty payments. Further, its research programme has been aimed for an international expansion with insomnia and eczema clinical trials in Chile. A while ago, the group expanded its clinical trial programme in Chile to include Autism. The group has also entered into a strategic partnership with Animal Health Company, CannPal. We maintain a “Hold” recommendation at the current price of $ 0.09
 

ZLD Daily Chart (Source: Thomson Reuters) 

Cann Group Limited

Stock price rally post ASX Listing: Cann Group Limited (ASX: CAN)listed on ASX on May 04, 2017 after raising $13.5m in a fully-underwritten initial public offering (IPO) with Canaccord Genuity (Australia) and PAC Partners being joint lead managers to the equity raising and IPO. CAN issued 45 million new shares at $0.30 per share, for a market capitalisation of $31.5 million upon listing. The stock price soared 3% on May 05, 2017 with the sector driven movement. The group is involved in breeding, cultivating and manufacturing medicinal cannabis for sale and use within Australia. It is said to be the first company in Australia to be issued with a licence under the federal government’s new regulatory system and is set to expand into a second facility within Melbourne using the funds from the IPO. Further, Aurora Cannabis Inc. (TSXV: ACB), one of Canada’s largest publicly-listed cannabis companies, has subscribed for 19.9% of Cann as a cornerstone investor to the IPO. It might be a little early to invest in this speculative company before it proves its mettle. We give an “Expensive” recommendation at the current price of $0.66

Stemcell United Ltd

SCU Details
Response to ASX Price Query: Stemcell United Ltd (ASX: SCU) stock price fell 12.9% on May 05, 2017. The group has lately responded to the ASX price query on trading on April 28, 2017 stating that the group is unaware of any information not announced to the market and justifying the recent trading. The group on the other hand revealed that its cash and cash equivalents at the end of March 2017 quarter dropped to $211,000 against $312,000 of previous quarter. Given the present trading scenario and shares moving on volatility, we give an “Expensive” recommendation at the current price of $ 0.135
 

SCU Daily Chart (Source: Thomson Reuters)

MGC Pharmaceuticals Ltd

MXC Details
Umbrella agreement with Royal Melbourne Institute of Technology: MGC Pharmaceuticals Ltd (ASX: MXC) stock price moved up 3.4% on May 05, 2017 while the group recently inked a strategic agreement (Binding Memorandum of Understanding) with the Royal Melbourne Institute of Technology regarding medicinal cannabis research initiatives, with initial focus on genetics and cultivation. MXC is set to apply to the Office of Drug Control (ODC) for Medical Cannabis Licenses for cultivation, production and research programs being undertaken at the secure RMIT facilities. Recently, the group’s first cannabinoid extracts were reported to have been produced at the newly operational European Extraction Facility.
 

MXC Cannabinoid Extracts (Source: Company Reports)
 
The stock has moved up 45% in last three months but fell 24.7% in last one month (as at May 04, 2017). The investors might want to hold off making an investment before the company shows up some more potential for momentum.We give an “Expensive” recommendation at the current price of $ 0.060
 

MXC Daily Chart (Source: Thomson Reuters) 

MMJ Phytotech Ltd

MMJ Details
Strengthening Australian distribution network: MMJ Phytotech Ltd (ASX: MMJ) stock price plunged about 39.29% in last one month (as at May 04, 2017) and fell 3.5% on May 05, 2017. The company controls operations through its ~60% interest in TSX-V listed Harvest One Cannabis Inc (TSXV: HVST), which recently has entered agreements with PanCann Streaming Corp. to fund construction of Lucky Lake facility and new additional production facility. This along with fully-funded expansion of existing Duncan facility, will help enable Harvest One Cannabis to have in excess of 250,000ft² of cultivation space. Further, MMJ’s Canadian-based subsidiary, United Greeneries Ltd (UG) has completed its first cannabis harvest at the Duncan Facility during the quarter ended March 2017. In a move to strengthen MMJ’s Australian distribution network, the group also inked a binding Letter of Intent with HL Pharma Pty Ltd for the importation and distribution of the Company’s medicinal cannabis products in Australia. MMJ stock has risen 97.7% in last six months (as at May 04, 2017) but has come under pressure recently owing to volatile sentiments. We give an “Expensive” recommendation at the current market price of $ 0.41
 

MMJ Daily Chart (Source: Thomson Reuters)

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