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Why these ASX cannabis shares are starting the week on a high

increasing cannabis asx share price represented by growing coin piles with cannabis plants on top
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The cannabis industry has been out of form this year and almost all pot stocks are nursing disappointing declines.

But things are looking up for a couple of them on Monday. Here’s why these two cannabis shares are starting the week on a high:

AusCann Group Holdings Ltd (ASX: AC8)

The AusCann share price has jumped 4.5% to 23 cents. This morning the medical cannabis company announced that it has appointed TGA-licensed Aspen Pharmacare Australia to provide packaging for its medicinal cannabis pharmaceutical products.

The agreement with Aspen is for an initial three-year period that can be extended. It will include GMP packaging services for AusCann’s proprietary solid hard shell capsules. These will be manufactured by its manufacturing partner, PCI Pharma, and then packaged by Aspen in consumer ready packs at its Australian facility. This means that a commercial launch may not be too far away for AusCann.

Botanix Pharmaceuticals Ltd (ASX: BOT)

The Botanix share price pushed 4.5% higher to 11 cents this morning. This follows an announcement relating to the synthetic cannabidiol product it uses. According to the release, the US Drug Enforcement Administration (DEA) has advised Botanix’s partner Purisys, that its synthetic cannabidiol product is no longer scheduled as a controlled substance.

Executive Chairman and President, Vince Ippolito, explained why this is a positive. He said: “This change in the regulation of synthetic CBD in the US will make a major difference to the speed of developing Botanix products and greatly reduces the risks and costs of clinical development.”

“The ability to manufacture at one site and distribute nationally and internationally means our supply chain is significantly simplified and our ability to recruit the best clinical sites (regardless of DEA license status) is greatly enhanced. The change in regulation has come at a favourable time, where the Company is actively preparing for large late-stage studies across our dermatology programs,” Mr Ippolito added.

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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.