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Cann Group Ltd shares surge higher on licence approval news

medical marijuana

The Cann Group Ltd (ASX: CAN) share price surged 9% higher to an all-time high of $1.64 on Wednesday, stretching its three-month return to an impressive 170%.

Why did its shares surge higher?

This afternoon the medicinal cannabis company announced that it has obtained approval from the Office of Drug Control to vary its existing Medicinal Cannabis Licence and Cannabis Research Licence for its two Victorian facilities.

This will allow Cann to utilise the full expanded capacity at its Southern Facility and extend its cultivation, production, and research activities to the new Northern Facility.

According to the release, Cann Group CEO Peter Crock believes that this approval will result in increased availability of high quality medicinal cannabis to manufacturers to produce medicinal cannabis products for Australian patients and extend Cann’s research and development programs.

Fellow pot stock Cannpal Animal Therapeutics Ltd (ASX: CP1) didn’t have a strong first day on the market. Its shares finished the day 15% lower than its listing price of 20 cents.

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Motley Fool contributor Motley Fool Staff 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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