Zelda Therapeutics Ltd

ZLD Details
Expanded research into Pancreatic Cancer and Brain Cancer: Zelda Therapeutics Ltd (ASX: ZLD) has recently released 500,000 fully paid ordinary shares from escrow on January 11, 2017. The group reported that they continue to focus on developing medicinal cannabis based therapies for several conditions. The group started collaboration with major institution like Complutensé University Madrid for testing their formulations for breast cancer models. ZLD boosted their capital position by raising $4 million to fund their activities. ZLD is adopting a two-pronged strategy. The group extended their cancer research into brain cancers (Telethon Kids Institute) and pancreatic cancer (Curtin University). Apart from their cancer research, the group is also focusing on niche markets like sleep disorders like insomnia as well as dermatology indications like eczema. The group would start these trials during 2017 and if successful, they would see Zelda getting product registrations in selected markets in 2018 leading to revenue streams. ZLD stock rallied already over 47.83% in the last three months (as of January 17, 2017). We believe that the stock is an ultra “Speculative Buy” at the current price of – $ 0.033

 
ZLD Daily Chart (Source: Thomson Reuters) 

Creso Pharma Ltd

CPH Details
Secured EU registrations for animal feed nutraceutical products: Creso Pharma Ltd (ASX: CPH) stock surged up 9.5% on January 18, 2017 following a trading halt from January 16, 2017. CPH has secured European Union (EU) registrations for two cannabidiol-based (CBD) proprietary formulation animal feed nutraceutical products. This gives the group the first mover advantage targeting the global companion animal market with CBD products. The group had announced that their subsidiary, Hemp?Industries (HI) witnessed solid demand for their hemp seed products given the rising consumer demand for “superfood”. HI catered to a second shipment of hemp protein to a leading bakery in Slovakia, Pekárne Liptovský Hrádok, s.r.o. (PLH). PLH uses HI protein for protein bar products, which are sold in major chains like Tesco and Kaufland. The second shipment was of 700kg and followed the first shipment of 500kg of hemp protein in mid?August.
 

Rapidly Growing Target Markets (Source: Company Reports)
 
Given the rising adoption of Hemp seeds in the food supplement, health and sport markets, the company seems to have good prospects. We give a “Speculative Buy” on the stock at the current price of – $ 0.23

 
CPH Daily Chart (Source: Thomson Reuters) 

MMJ Phytotech Ltd

MMJ Details
Started Cannabis Cultivation: MMJ Phytotech Ltd (ASX: MMJ) recently reported that their United Greeneries, (UG) Canadian-based subsidiary, started cannabis growing operations at their Duncan Facility. The cultivation started after they got an Import Permit from Health Canada (“HC”) and the Canadian Food Inspection Agency (“CFIA”) approval enabling an importation of 1kg of cannabis seeds. UG started with the staged expansion of the Duncan Facility, with starting production of over 7,500 kg of cannabis by the end of 2018. UG intends for a production capacity of the Duncan Facility to circa 60,000kg. The group has also progressed on the definitive agreement with Harvest One Capital Corp. ("Harvest One") (TSX-V NEX: WON.H), regarding the proposed listing of UG and Satipharm AG ("Satipharm") on the TSX-V via the reverse takeover of Harvest One. Lately, Harvest One has launched C$15 million equity raising.

 

Results for FY16 (Source: Company Reports)
 
On the other hand, MMJ stock has been under pressure since its listing in January 2015, despite a few stock price hikes. MMJ stock lost over 30.4% (as of January 17, 2017) in the last six months. We believe the group’s profits are more dependent on the regulations and concrete growth is yet to be seen. We give an “Expensive” recommendation on the stock at the current price of – $ 0.19

 
MMJ Daily Chart (Source: Thomson Reuters) 

MGC Pharmaceuticals Ltd

MXC Details
Got approval for European CPNP for registering three dermatological products:  MGC Pharmaceuticals Ltd (ASX: MXC) recently reported that they got approval for the European Cosmetics Products Notification Portal (CPNP) for registration of three cannabidiol (CBD) based dermatological skin care products. These products are for acne, psoriasis and seborrhoea skin conditions. Last three-month clinical efficacy tests on human volunteers would start this month at a dermatological clinic in Slovenia. With this MGC Derma, new dermatological skin care product line of the group, would be able to start a second revenue stream this year. On the other hand, tough environment in Europe coupled with rising competition could be a concern. MXC stock fell over 10.4% (as of January 17, 2017) in the last three months and we believe the pressure would continue. We give an “Expensive” recommendation at the current price of - $ 0.043 

 
MXC Daily Chart (Source: Thomson Reuters) 

TW Holdings Ltd
(Currently suspended and is to be re-listed)

TWH Details
Boost to capital position: TW Holdings Ltd (ASX: TWH) had raised $5 million in December 2016 for funding the progress on medical cannabis operations including licensing applications which would start growing operations in Australia. The group has also acquired AusCann Group to leverage IP of their major shareholder and strategic partner, Canopy Growth Corporation, a Canada based medicinal cannabis company. The takeover bid offer for AusCann closed on January 06, 2017. Under this move, TWH will be renamed as AusCann Group Holdings Ltd. TWH stock had generated more than 100% returns to shareholders last year as of October 28, 2016. The stock is currently suspended and is expected to re-list this month, i.e., mid to late January 2017. It will be prudent to wait and watch out for the re-listing and subsequent performance.

 
TWH Daily Chart (Source: Thomson Reuters)

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 currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.