A bauxite company branching out into cannabis may seem an unusual prospect.
But the venture appears to be paying off for Queensland Bauxite Ltd (ASX: QBL) shareholders.
The Queensland Bauxite share price has gained 550 per cent in the past year, although the company is yet to realise its ambitions to mine bauxite.
That could change, with the company announcing in October that it has been granted a mining development lease for its South Johnstone Bauxite Project.
However, it seems investors may not be as inspired by Queensland Bauxite’s prospects of mining bauxite as they are with the company’s other endeavours.
Queensland Bauxite, with a market value of $80 million, owns a 55 per cent stake in the unlisted Australian cannabis and hemp company Medical Cannabis Limited.
Medical Cannabis Limited has been behind a series of announcements suggesting the company is on the cusp of cashing in on the potentially lucrative medical cannabis market.
In December, Queensland Bauxite announced that Medical Cannabis Limited had signed an agreement with Algae Tec Ltd (ASX: AEB), in which Algae Tec would exclusively license a Medical Cannabis hemp seed.
In another development, Queensland Bauxite announced that a subsidiary of its subsidiary Medical Cannabis, VitaCann Pty Ltd, had struck an agreement with Canadian company Canntab Therapeutics Limited.
Under the agreement, the companies hope to bring to market a cannabis pill which they describe as a “game changing medicinal solution”.
Queensland Bauxite also praised the recent relaxation of restrictions governing the exportation of cannabis products, which has seen the ASX pot stocks enjoy strong gains.
Auscann Group Holdings Ltd (ASX: AC8) continues to soar, notching up another 9.4 per cent on Monday.
Other pot stocks, including Creso Pharma Ltd (ASX: CPH), Cannpal Animal Therapeutics Ltd (ASX: CP1), Botanix Pharmaceuticals Ltd (ASX: BOT), Zelda Therapeutics Ltd (ASX: ZLD) and MGC Pharmaceuticals Ltd (ASX: MXC), also enjoyed gains on Monday.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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.
- Property prices up in major mining towns – October 24, 2018 10:07am
- Why Aurelia Metals Ltd (ASX:AMI) looks a golden opportunity – October 23, 2018 10:24am
- Sino Gas & Energy Holdings Limited shareholders approve Lone Star takeover – September 6, 2018 8:39am