The Althea Group Holdings Ltd (ASX: AGH) share price was out of form last week and sank notably lower.
The cannabis company’s shares crashed almost 40% lower after one of its major shareholders sold off all their non-escrowed shares at a significant discount.
That shareholder was Canadian cannabis giant Aphria. It offloaded 37 million shares, which is the equivalent of 15.7% of the company’s issued capital.
This was the second time this month that a cannabis giant has dumped its holding in an ASX-listed pot stock. Earlier this month Canopy Growth Corp sold 42 million shares in Auscann Group Holdings Ltd (ASX: AC8) for just 15 cents per share.
I can’t help but feel that this is a very ominous sign for the local cannabis market.
However, that hasn’t stopped some investors from buying Althea’s shares this morning following a product update.
What has Althea announced?
This morning Althea announced the launch of Althea CBD100.
Althea CBD100 is a full spectrum cannabis-derived extract oral oil comprised predominantly of cannabidiol (CBD), along with small traces of terpenoids, flavonoids, and other cannabinoids.
It contains less than 1mg per ml of tetrahydrocannabinol (THC) and will be Althea’s most highly concentrated CBD medicinal cannabis product.
Management believes Althea CBD100’s full spectrum cannabinoid profile provides it with a competitive advantage over existing products in the market, which are generally purified or isolate CBD.
It is manufactured in Australia, GMP certified, and ready for export to international markets.
Althea Group Holdings CEO Josh Fegan said: “Launching Althea CBD100 fills an important gap in our existing product portfolio. Based on our extensive market research including discussions with various clinics, doctors and patients, we believe that Althea CBD100 will be well received in the marketplace. We are very proud of the fact Althea CBD100 is formulated and manufactured in Australia under GMP.”
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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.