Why this ASX cannabis share rocketed 35% higher today

The AusCann Group Holdings Ltd (ASX:AC8) share price is rocketing higher on Wednesday after the cannabis company released an update…

The best performer on the All Ordinaries index on Wednesday has been the AusCann Group Holdings Ltd (ASX: AC8) share price.

In morning trade the cannabis company's shares were up a whopping 35% to 24.25 cents.

They have since pulled back a touch, but are still up 22% at the time of writing.

a woman

Why did the AusCann share price rocket higher today?

Investors have been buying AusCann's shares following the release of an update in relation to its proprietary cannabinoid-based hardshell capsules.

According to the release, AusCann has completed manufacturing and testing of the hard-shell capsules and released the hard-shell capsules for clinical evaluation. Management advised that the clinical evaluation goal is to provide key exposure information to inform dose selection.

The release explains that its testing was conducted in accordance to standardised validated tests used across the pharmaceutical industry. This is to ensure product quality prior to release of products to market.

The hard-shell capsules were tested and found to meet all applicable pre-defined criteria set by the Australian Therapeutic Goods Administration, relevant International Pharmacopoeial standards, and the company's own quality assurance and control procedures.

AusCann is now targeting hard-shell capsules availability for patients in Australia during the first half of calendar year 2020.

AusCann CEO, Mr Ido Kanyon, was pleased with the development.

He said: "AusCann had the vision to provide patients and healthcare professionals with a high quality pharmaceutical product which addresses patients' unmet needs. AusCann's manufacturing, operational processes and test results are up to global pharmaceutical standards which is great news for patients, healthcare professionals and AusCann's investors."

"Now with this stage of our R&D program complete, we are accelerating our path toward commercialisation with full confidence in our ability to consistently provide reliable, stable and standardised pharmaceutical products which address unmet medical needs."

"We remain focused on making AusCann's capsules available for prescription to patients in Australia during the first half of 2020. Our goal is to provide high-quality medicine and to obtain detailed, data-driven evaluations regarding the outcomes of AusCann's pharmaceutical treatment. These results will build the clinical evidence supporting the unique benefits of AusCann's capsules necessary to open a large market for the Company," he concluded. 

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.

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