One of the biggest movers in morning trade has been the Zelda Therapeutics Ltd (ASX: ZLD) share price.
The "pot stock" saw its shares jump 8.5% shortly after the market opened following the announcement that it will launch a clinical trial programme in Chile in the second half of this year.
The trials will target both insomnia and eczema. These two lucrative markets had a combined global value of approximately $8 billion last year, according to research by GBI Research.
Thanks to its strong relationship with fellow pot stock Auscann Group Holdings Ltd (ASX: AC8), Zelda will work with AusCann's joint-venture DayaCann and non-profit patient advocate group Fundacion Daya to streamline the trials and facilitate the research programme.
DayaCann is the only licensed producer of medicinal cannabis in Chile and is expected to harvest its first crop in the second quarter of the year.
Zelda expects to complete the trials by the end of the year, with the data available shortly after. Furthermore, it intends to commence the product registration process to enable it to sell clinically approved products as soon as positive trial data is in hand.
As a result, management believes it is on a pathway to potential revenue generation as early as 2018
Should you invest?
Whilst I think AusCann and Zelda are in a strong position to profit from the deregulation of medical marijuana, a significant amount of growth has now been built into their respective share prices.
Because of this I think it may be prudent to sit back and wait for its trial data at the end of year before making an investment.
In the meantime, I would suggest you keep both companies at the top of your watch list.
