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Is the Australian pot stock sector party over?

Zelda Therapeutics Ltd (ASX: ZLD) share price closed on Thursday at $0.08c, around the same price it was at a month ago.

Auscann Group Holdings Ltd (ASX: AC8) has not fared so well. Its share price closed on Thursday at $0.46c, down from $0.53c a month before.

Botanix Pharmaceuticals Ltd (ASX: BOT) closed Thursday at $0.04c to end up at roughly the same point it was a month ago.

And the Hydroponics Company Ltd (ASX: THC) saw its share price drop over the course of a month from $0.28c to close on Thursday at $0.26c.

Although the past month was not the best for the pot stocks, there could be some opportunity in the sector.

CannPal Animal Therapeutics Limited (ASX: CP1) may prove another pot stock winner as it gears up for its expected float date of October 18. 

CannPal specialises in Cannabinoid-based pharmaceuticals to treat cats, dogs and horses. 

The company hopes to sell 30 million shares at $0.20 each and raise $6 million when it lists on the Australian Securities Exchange with the proposed ticker ASX: CP1. 

The company has forecast an expected market capitalisation of $18.5 million. 

CannPal stated the funds will go to the clinical phase of the company’s CPAT-01 drug and other research and development. 

Managing Director Layton Mills said CannPal has entered into strategic research partnerships with medical cannabis company Zelda Therapeutics and veterinary research organisation Invetus to commence the clinical phase of research. 

“With the pedigree of our management and advisory team, we are confident that following the success of our clinical trials, we will be able to successfully gain regulatory approval for our cannabinoid-derived animal therapeutics and bring them to market,” he said. 

CannPal could be a winner if it manages to attract the buzz other pot stocks have enjoyed this year. 

And while the idea of dosing pets up on dope might sound a bit strange, the legitimacy and acceptance of medical marijuana is growing. 

As such, it seems CannPal’s combination of pot, pets and medicine could be a winner.

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Motley Fool contributor Steve Holland has no position in any of the 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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