AC8 Details

AusCann Group Holdings Ltd (ASX: AC8), an Australian based producer and provider of high quality, economical and clinically validated cannabis medicines, is one of a few Australian based medical cannabis companies that has received both cultivation and manufacturing licences and hasthe ability to grow and manufacture through to the end medicine in Australia. AC8 has also now commencedits Medical Outreach program with its recently appointed Medical Liaison Managers.

Surging on market opportunities: Given that the local market is predicted to be around $1bn, the group has a great opportunity for growth. Further, the sector is expected to witness export opportunities that may emerge as the Government allows for a medical cannabis export sector to flourish.AusCann will also provide imported medicines in the local market through its partner and major shareholder, Canadian group Canopy Growth Corporation. The group’s operations in Chile through the JV, DayaCann, who have the only licence to cultivate medicinal cannabis in the Country, are also tracking well.Lately, the group secured two key licences advancing its cultivation and manufacturing activities in the Australian market. Particularly, the group was granted an Australian medicinal cannabis licence and a manufacturing licence from the Office of Drug Control under the Narcotic Drugs Act 1967. Further, AusCann’s strategic partner Tasmanian Alkaloids was also granted a research and development licence, and a cultivation licence for its Tasmania site. These licences cover the production, supply, packaging, transport, storage and possession of the medical products, completing the supply chain in Australia.

The recently passed Medicinal Cannabis Legislation Amendment (Securing Patient Access) Bill 2017 by the Federal Government will give an opportunity to the terminally ill patients to access cannabinoid medicines through the TGA Special Access Scheme Category A. In this regard, cannabinoid medicines that are produced by AusCann will be made available in Australia without requiring prior approval from the TGA. Thus, the group is looking forward to the legislation being put in place and various opportunities that can be explored under the same.

AC8 stock rallied 23.5% on October 31, 2017 given the overall positive sentiment emanating on the group based on the recent developments. We maintain a “Buy” at the current price of $0.525

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.