Why Auscann Group Holdings Ltd shares have climbed 25% higher this week

Auscann Group Holdings Ltd (ASX:AC8) is capitalising on its strong start to 2018.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Auscann Group Holdings Ltd (ASX: AC8) share price was down 4% to $1.68 on Friday, after the stock had climbed 25% higher during the week.

While the main driver of the price surge was the announcement that the company received an import permit to source medicinal cannabis products from Canadian company Canopy Growth Corporation, on Thursday Auscann released a report summarising progress made in the March 2018 quarter.

Auscann and its partner Tasmanian Alkaloid expect to plant their first Australian crop this year, and to have products available by early 2019. Auscann signed an agreement with Australian Pharmaceutical Industries Ltd (ASX: API) for the domestic distribution of its products, but the company is also looking at export markets.

In fact, at the beginning of January, Auscann's share price skyrocketed on the news that the federal government would permit the export of cannabinoid medicines from Australia.

In the meantime, Chilean authorities have granted patients immediate access to medicinal cannabis. Auscann operates in Chile through Dayacann, a joint venture with the local Fundación Daya.

Auscann spent $1.5 million during the quarter, and $400,000 in R&D. This leaves a $12 million cash balance, enough to continue operations while looking forward to the first sales.

Follow the free link below to find out about the other innovative companies that are poised to outperform the market in 2018.

Motley Fool contributor Tommaso Autorino 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »