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ASX pot stock update: What you need to know

One of the most talked about areas of the market this year has been the medicinal cannabis space.

But with so many pot stocks now on the local share market, it certainly can be hard to keep tabs on them all.

So to help you get up to date, here’s a breakdown of the recent goings on in the sector:

Auscann Group Holdings Ltd (ASX: AC8)

Last month AusCann’s strategic partner Tasmanian Alkaloids was granted a medicinal cannabis licence and a research and development licence from the Office of Drug Control. This means that AusCann now has licenses in two Australian states.

Botanix Pharmaceuticals Ltd (ASX: BOT)

Following successful Phase 1A trials of its BTX 1503 candidate which uses synthetic cannabidiol to treat moderate to severe acne, the company will soon undertake Phase 1B trials to test the drug’s efficacy. The acne prescription market is expected to be worth up to US$4.5 billion by 2018.

Cann Group Ltd (ASX: CAN)

This week the Cann Group share price hit an all-time high of 82 cents. Investors appear to be excited by the prospect of the medicinal cannabis company harvesting its first plant material from cultivation at its Southern facility this month.

Creso Pharma Ltd (ASX: CPH)

Last month Creso announced plans to acquire Nova Scotia-based medicinal cannabis producer Mernova Medicinal for a total of C$10.1 million. The deal will make Creso the first Australian pot stock with direct exposure to the world’s largest legal medicinal cannabis market. Furthermore, it gives the company access to the soon-to-be legalised recreational market in Canada.

Hydroponics Company Ltd (ASX: THC)

Although it had a reasonably quiet month, in July the Hydroponics Company announced that its wholly-owned medicinal cannabis subsidiary Canndeo Limited is building a domestic medicinal cannabis production and supply capability.

MMJ Phytotech Ltd (ASX: MMJ)

There hasn’t been a great deal of news out of MMJ Phytotech in the last few weeks. The next thing on the horizon for shareholders to look out for will be its Phase 2 clinical trial of its PTL201 capsules for treatment of multiple sclerosis symptoms.

Zelda Therapeutics Ltd (ASX: ZLD)

At the end of last month Zelda announced an expansion to its breast cancer research collaboration with Complutense University. Following positive early data which showed that its formulations had anti-cancer effects across different breast cancer cell lines, the two parties have extended the research to investigate the effect of cannabinoids on cancer stem cell-like cells.

Finally, whilst I think that one or two of these pot stocks could have bright futures, I feel it is still a little too soon to invest.

In the meantime I would suggest investors snap up 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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