Why these medicinal cannabis companies are charging higher today

It certainly has been a bright start to the week for the medicinal cannabis industry.

In morning trade a number of shares in the industry have pushed notably higher. Here’s why these three are climbing:

The Auscann Group Holdings Ltd (ASX: AC8) share price is up 3.5% to $1.46 despite there being no news out of the leading medicinal cannabis company. Investors continue to snap up AusCann shares in the belief that it is the best-placed company in the space to profit from recent regulatory changes. I think investors are spot on with this one and believe AusCann will have a bright future ahead of it if everything goes to plan.

The MMJ Phytotech Ltd (ASX: MMJ) share price is up over 2.5% to 38 cents after the diversified cannabis company announced that it has invested C$1 million for an approximate 1.6% shareholding in privately held Fire & Flower Inc. According to the release, Fire & Flower Inc is a Canada-based cannabis retailer that plans to open 37 retail locations in the province of Alberta alone once permitted by regulatory bodies. This investment leaves MMJ Phytotech with a cash balance of A$1.8 million, which I suspect could mean a capital raising is around the corner. Unless it chooses to offload its Cannabis Wheaton shares.

The Zelda Therapeutics Ltd (ASX: ZLD) share price has jumped 9% to 12 cents after the cannabis-based biotechnology company released an update on its insomnia clinical trial. According to the release, recruitment for Australia’s first clinical study of medical cannabis to treat insomnia is now complete. As a result, the next phase of the study will commence shortly at the University of Western Australia Centre for Sleep Science with patients undergoing baseline sleep measurements before commencing pharmaceutical dosing. Results are expected before the end of the year, with the company aiming to rapidly pursue commercialisation activities if the trial is a success.

Looking for the next major investment boom? Check out this one.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

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 Scott Phillips.

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.