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Why the MMJ Phytotech Ltd share price rocketed higher today

The MMJ Phytotech Ltd (ASX: MMJ) share price has been a big mover in morning trade following the release of a positive announcement.

At the time of writing the pot stock has climbed higher by 7.5% to 42 cents.

What happened?

This morning MMJ Phytotech announced that its Australian distribution partner HL Pharma has successfully imported its first shipment of medicinal products from its Swiss-subsidiary, Satipharm AG.

These products include two strengths of its Gelpell cannabidiol capsules to be used for a variety of medical conditions as approved by prescribing doctors under Australian Federal and State legislation.

As the Gelpell cannabidiol capsules are amongst the first medicinal cannabis products available to approved prescribers, management believes it further strengthens the company’s first-mover advantage.

Should you invest?

Whilst I agree that this does potentially give the company a slight first-mover advantage, I believe there is still a lot of work that needs to be done until doctors prescribe its Gelpell cannabidiol capsules.

So although the shipments have been imported, it might be a little too early to get overly excited. Especially with the likes of Auscann Group Holdings Ltd (ASX: AC8), Cann Group Ltd (ASX: CAN), and Zelda Therapeutics Ltd (ASX: ZLD) not far behind.

Because of this I would suggest investors hold off an investment for the time being and keep a close eye on the sector.

Until then I would suggest investors take a look at these explosive growth shares instead.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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