Why Queensland Bauxite Ltd (ASX:QBL) shares have stormed 13% higher today

The market may be pushing notably higher today, but the Queensland Bauxite Ltd (ASX: QBL) share price is vastly outperforming it.

In early afternoon trade the bauxite and medicinal cannabis company’s shares are up over 13% to 4.3 cents.

Why are Queensland Bauxite’s shares storming higher?

After the market closed on Wednesday Queensland Bauxite announced that its soon to be wholly owned Medcan Australia business has been issued with both an Import and Export Licence under the Office of Drug Control.

According to the release, these licences will allow Medcan to join the likes of AusCann Group Holdings Ltd (ASX: AC8) and Cann Group Ltd (ASX: CAN) in capitalising on the international and local opportunities by both importing and exporting a wide range of cannabis products.

These include products such as cultivars, dried flower finished products, medicinal cannabis manufactured locally under GMP Licences, medicinal cannabis listed as export-only or registered in the ARTG, and Canntab XR Pills produced in Canada.

Medcan Australia’s CEO, Craig Cochran appears pleased with the news. He stated that: “We are extremely happy to add the import and export licences to our current suite of licences. This brings Medcan Australia another step closer to our vision of providing patient specific Medicinal Cannabis products to the people that need them most. It also allows us the ability to capitalise on various opportunities in the international market immediately.”

It is worth pointing out, though, that Queensland Bauxite does not yet own Medcan, but has entered into an agreement to acquire it through the issue of 250 million QBL shares.

Considering how everything appears to be going well for Medcan, it is a little perplexing why it would let a mining company acquire it when it could just go it alone. Perhaps Medcan sees something in Queensland Bauxite’s repertoire that it is missing.

I’m a little sceptical on things so plan to sit this one out and watch on from the safety of the sidelines.

In the meantime, this ASX small cap is up 285% with no sign of stopping...

One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...

To discover the name and code, simply click the link below. You'll discover our expert's #1 medical technology pick... and you can decide for yourself whether to get invested today.

Click here to claim your free report.

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.