Stemcell United Ltd ended the last week trading with a stock price plunge of 29% on September 29, 2017 post a whopping 22% rise a day before. The group announced about the notification on termination of its consulting agreement as received from Mr Nevil Schoenmakers. Further, the group is now uncertain about the success of its initiative to expand into cannabis sector as the same is linked to ASX exercising its discretion with regards to listing rules. It is important to note that Stemcell United was listed on ASX less than two years ago and has specialisation in traditional Chinese medicine plant extract business; and had appointed Schoenmakers for assistance with regards to opportunities in the medicinal cannabis sector.

Recently, it was also noted that SCU’s director, Gu Huan Qing had disposed about 15 million ordinary shares for a cash consideration of $600,000.

In the recent FY17 performance report, the group had highlighted a 58% fall in revenue and a loss of $2.4 million (versus $35.6 million of FY16) at the back of an impairment charge on group’s intangible asset. Earlier this year, the group had signed an agreement with iCAN Israel-Cannabis Ltd under which SCU could avail services from iCAN for business operations in Asia.

In last three months, SCU stock has fallen about 60% (as at September 28, 2017). Given the level of uncertainty prevailing, it might be better to ‘hold’ the position at the current price of $ 0.025

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