In afternoon trade one of the best performers on the local market has been the MMJ Phytotech Ltd (ASX: MMJ) share price after it emerged from its trading halt.
At the time of writing the pot stock is up 8.5% to 38.5 cents. This brings its one-month return to in excess of 18%.
Why are its shares higher today?
This afternoon MMJ Phytotech announced to the market that Canada-based Harvest One, which it owns a 59% stake in, has provided an update on its wholly-owned subsidiary United Greeneries.
That update reveals that Health Canada has granted United Greeneries the right to sell dried marijuana to registered patients under the Access to Cannabis for Medical Purposes Regulations.
According to a release from Harvest One, United Greeneries has 220 kilograms of dried cannabis buds in storage which are ready for immediate sale.
These are likely to be sold through CannTrust, as the company has a strategic wholesale agreement in place for the first year of its production.
Should you invest?
Whilst it is great to see that the company will be in a position to generate revenues through United Greeneries in the near future, it is of course still early days.
So for that reason I would suggest investors keep MMJ Phytotech on their watchlist alongside other promising medicinal cannabis companies such as Creso Pharma Ltd (ASX: CPH), Auscann Group Holdings Ltd (ASX: AC8), and Zelda Therapeutics Ltd (ASX: ZLD).
Until these companies are generating significant revenues I would hold off an investment and look at opportunities elsewhere on the market.
