Why this ASX cannabis stock is soaring today

Shares in ASX cannabis group Althea Group Holdings Ltd (ASX: AGH) are climbing higher this morning after a strong operational update.

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Althea Group Holdings Ltd (ASX: AGH) shares have jumped as much as 6% higher this morning after a strong operational update from the ASX cannabis company. At the time of writing, Althea shares are trading for 48 cents, up 3.26%.

What did Althea announce today?

Althea ended 2019 in strong fashion by exceeding its year-end target of 4,000 patients. The ASX cannabis company reported 4,018 patients as at 31 December 2019.

These 4,018 patients were prescribed Althea medicinal cannabis products in Australia, with an average of 36 new patients added each business day in December.

That represents month-on-month growth of 48%, compared to November 2019 numbers.

The ASX cannabis company's shares are rocketing higher in early trade following today's operational update.

A total of 432 healthcare professionals have now prescribed Althea medicinal cannabis to patients. That's a significant increase on where the group ended 2018, with approximately 75 professionals prescribing its products.

How did Althea shares perform in 2019?

The Althea share price climbed 41.67% higher throughout 2019 in a strong year for shareholders. This reflects the consistent milestones ticked off by the ASX cannabis group throughout the year.

Trading volume in the company surged in late October after the company extended its product supply agreement until 2027. Aphria Inc. announced a major share sale in the group, which saw the Althea share price plummet 22% in one day.

The ASX cannabis stock has started the year strongly and its shares were up 17.95% since 2 January, prior to this morning's movements.

What about the other medicinal cannabis groups?

It was a largely disappointing 2019 for shareholders in a number of ASX cannabis companies.

The Cann Global Ltd (ASX: CGB) share price closed the year down 66.67% in the space of a few months. Auscann Group Holdings Ltd (ASX: AC8) fared similarly, plummeting 55.88% lower in the last 12 months.

Althea has been one of the few ASX cannabis shares to actual post capital gains over the last 12 months or so. That trend looks to be continuing in the early part of 2020, in line with the company's operational expansion.

Motley Fool contributor Kenneth Hall 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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