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This ASX cannabis share is up 167% in the space of a month

The Cann Group Ltd (ASX: CAN) share price was on form again on Monday and recorded another strong gain.

The medicinal cannabis company’s shares raced 13% higher to end the day at $1.07.

This latest gain means that Cann Group’s shares have now rocketed an incredible 167% since this time last month.

Which unsurprisingly makes it the best performer on the All Ordinaries index over the period ahead of Aeon Metals Ltd (ASX: AML) and fellow cannabis company AusCann Group Holdings Ltd (ASX: AC8).

Why is the Cann Group share price smoking the market?

There have been a number of catalysts for Cann Group’s strong share price gain over the last 30 days.

One was speculation that global beverage giant Coca-Cola is planning to launch a new range of drinks in Canada containing CBD with Cann Group’s strategic partner Aurora Cannabis.

Coca-Cola has since rejected this speculation, but its shares didn’t give back their gains.

Another driver of its share price gain was the release of a joint announcement with its manufacturing partner IDT Australia Limited (ASX: IDT) last week.

That announcement revealed that GMP extraction activities are underway for the first batches of medicinal cannabis resin.

This extracted resin will be used as an Active Pharmaceutical Ingredient (API) in formulation and packaging activities at IDT to produce GMP medicinal cannabis oil products.

Once formulated and packed, the cannabis oil products will undergo stability testing to support a targeted commercial release in late March of this year. This means that Cann Group could be generating revenue in the very near future.

Though, it is worth noting that competition in the industry is heating up. Both Althea Group Holdings Ltd (ASX: AGH) and MGC Pharmaceuticals Ltd (ASX: MXC) have reported solid growth in medicinal cannabis patient prescriptions this month.

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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.