How Queensland Bauxite Ltd plans to cash in on cannabis

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.

Bill Gates Says This Could Be Worth "10 Microsofts"

If You Missed Investing In Microsoft in 1996 - Read This

I can't believe so many investors haven't heard about something Microsoft founder Bill Gates told a group of college students in 2004.

This could be your chance to get in on the ground floor!

Click here to discover more!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.