It is quickly becoming a case of another day, another all-time high for the Cann Group Ltd (ASX: CAN) share price.
The medicinal cannabis company’s shares have continued their stellar run and climbed 7% to an all-time of $1.68 in morning trade.
Incredibly, this means that Cann’s shares have now risen a remarkable 460% since hitting the ASX boards at 30 cents per share in May.
Why are its shares higher today?
This morning Cann announced that the Office of Drug Control has granted it a licence to import and export cannabis genetics and medicinal cannabis.
According to the release, this means the company can now apply for a permit to export raw cannabis material and cannabis oil for analytical testing.
The licence also allows it to apply for a permit to import cannabis genetics and medicinal cannabis products from legal international sources.
Management believes the licence is an important milestone in its goal of building a genetic database of locally and internationally sourced cannabis strains for cultivation under its medicinal cannabis licence.
Furthermore, it is seen as a key step in its plan to import medicinal cannabis products for supply to Australian patients and will complement the locally manufactured products that use cannabis cultivated by Cann.
Should you invest?
Along with Auscann Group Holdings Ltd (ASX: AC8), I think Cann is one of the best positioned medicinal cannabis companies in Australia.
However, I feel there is still a lot of work ahead before either of these companies are generating meaningful revenues. Because of this, I continue to believe that investors ought to keep them on their watchlists and wait for sales data that supports their lofty market valuations.
Motley Fool contributor James Mickleboro 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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