Stocks’ Details
 

AusCann Group Holdings Ltd

Won major licenses: AusCann Group Holdings Ltd (ASX: AC8) is the onlycompany in the region which has fully integrated capability to grow and manufacture cannabis medicines in Australia. The group won major licenses for R&D, cultivation and manufacturing. The group’s strategic partner in Tasmania, Tasmanian Alkaloids, is waiting for approval of their manufacturing license from the Office of Drug Control that would enable them to start manufacturing operations. The group’s cultivation and manufacturing team hasstarted working with Tasmanian Alkaloids in preparing the cultivation and manufacturing facilities at the Tasmanian site ready for planting in 2018. They have appointed Medical Liaison Managers to lead Medical Outreach program across Australia. AC8 stock surged over 129.6% in this year to date (as of November 01, 2017) and we believe this bullish momentum would continue in the coming months. We give a “Buy” recommendation on the stock at the current price of $0.485

Cash flows forecast as at September Quarter (Source: Company Reports)
 

Cann Group Ltd

Cannabis import and/or export license: Cann Group Ltd (ASX: CAN) was granteda license to import and/or export cannabis genetics and medicinal cannabis products from the Australian Government Department of Health, via Office of Drug Control (ODC). After this license, the group can now apply for a permit to export raw cannabis material and cannabis oil for analytical testing. The group is working closely with Canadian companies Aurora Cannabis and Anandia Laboratories to identify suitable genetics and medicinal cannabis products for inclusion in an import permit application. The group has also relocated its Corporate Headquarters to La Trobe University’s Technology Enterprise Centre in Victoria. Given the developments of this year, CAN stock surged 186.8% since its inception (as at November 01, 2017) and is trading at higher levels. We believe that the stock is “Expensive” at the current price of $1.885

Creso Pharma Ltd

Opportunities arising in Canada: Creso Pharma Ltd (ASX: CPH) finished their due diligence for Mernova Medicinal Inc.’s Canadian medicinal cannabis growing facility. Ground works startedin Canada while the project is on track for finishing the same in the third quarter of 2018. Canada has amended the Cannabis Act Bill C-45 to enable edible cannabis products in 2019 and this opens huge opportunities for Creso’s cannaQIX® and cannapeal® product ranges. Already around 200,000 patients have been registered for medicinal cannabis in Canada. CPH stock rose over 10.2% in the last three months (as of November 01, 2017) while we give a “Hold” on the stock at the current price of $0.55
 

September Quarter Cash Position (Source: Company Reports)
 

Zelda Therapeutics Ltd

Positive results for observational trial using cannabis: Zelda Therapeutics Ltd (ASX: ZLD) made a progress in the clinical trial program during the September quarter. The group got positive breast cancer research results wherein the research was conducted in collaboration with Complutense University to investigate the impacts of cannabinoids on cancer stem cell-like cells. The group funded observational trial using cannabis extracts to treat autism which showed positive results. Further, the group is on track to deliver clinical trial results in FY18. Given the upside and ZLD stock rally of over 8.8% in the last three months (as of November 01, 2017), we give a “Hold” on the stock at the current price of $0.073
 

Stemcell United Ltd

Exploring medical cannabis as a new product line: Stemcell United Ltd (ASX: SCU) has identified medicinal cannabis as an opportunity to expand their product line. The group finished the market trials of its dendrobium essence infused facial mask (“Masks”) and has finalized the ingredients formulation for the Masks.The group was otherwise battered few months back and had reported a loss of $3.6 million in FY17 owing to impairment of an intangible asset. Given the potential medicinal cannabis opportunity with , we maintain a “Hold” on the stock at the current price of $0.026
 

MMJ Phytotech Ltd

Enhancing market position: MMJ Phytotech Ltd (ASX: MMJ) is planning to expand their market position via further strategic investments within the global cannabis sector. The group has 59% stake in Harvest One Cannabis. Their United Greeneries is preparingfor importation of Satipharm capsules into Canada and obtainedACMPR sales and distribution amendment from Health Canada to sell dried marijuana to registered patients. Satipharm enhanced their distribution footprint across Europe and gotfinal regulatory approval for the distribution of prescription Satipharm CBD capsules into Australia. On the other hand, we still believe that the stock is trading at higher levels and accordingly, we give an “Expensive” recommendation at the current price of $0.355
 

The Hydroponics Company Ltd

Received the second license approval: The Hydroponics Company Ltd.’s (ASX: THC) subsidiary Canndeo Ltd got Medicinal Cannabis License from the Office of Drug Control. This is the second approval out of the three licenses while the group’s Manufacturing Licenseis awaiting approval. THC stock rallied over 52.5%  in the last five days (as of November 01, 2017) but was down 6.5% on November 02, 2017. We believe it will be better to wait for some more positives before investing into the stock while the group is yet to report profits. We give an “Expensive” recommendation on the stock at the current price of $0.285

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