The Motley Fool

Cannabis company Elixinol Global granted manufacturing licence

Although it has given back its gains now, the Elixinol Global Ltd (ASX: EXL) share price was a strong performer this afternoon.

At one stage the shares of the manufacturer and global distributor of industrial hemp based dietary supplement and skincare products were up as much as 4.5% to $4.18.

Why did the Elixinol Global share price charge higher?

Investors were buying the company’s shares this afternoon after it released a positive announcement relating to its wholly owned subsidiary, Nunyara Pharma.

According to the release, the Australian Office of Drug Control (ODC) has granted Nunyara Pharma a licence to manufacture medicinal cannabis for extracts and tinctures of cannabis and cannabis resin.

This is a step in the right direction for the company, but not the last licence that it will require.

Elixinol Global is still awaiting approval to receive its medicinal cannabis licence which will allow it to cultivate and produce cannabis for medicinal purposes.

The company’s new chief executive officer, Stratos Karousos, was very pleased with the news.

He said: “The granting of the Manufacture Licence is extremely exciting and we look forward to also being granted our Medicinal Cannabis Licence shortly which will complete our licence application process for Nunyara. The Board will continue with its review of capital allocation across all Elixinol Global businesses to deliver optimal value to our shareholders.”

In addition to this, the company also revealed that it is reviewing its capital requirements.

The release explains that: “The Board intends to review the capital required to support Nunyara’s ongoing growth in the Australian medicinal cannabis industry. Elixinol Global’s US CBD business continues to grow rapidly and provide extensive capital opportunities for the group to invest in. Further, the broader expansion of Elixinol Global’s CBD business in Europe remains a focus as the industry continues to evolve.”

Elsewhere in the industry, the high-flying Althea Group Holdings Ltd (ASX: AGH) has had its wings clipped today and is down 2% in late trade. Fellow cannabis company Cann Group Ltd (ASX: CAN) is trading 0.5% lower this afternoon.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.