Why these 3 ASX cannabis shares are flying high in 2020

These 3 ASX cannabis shares are rebounding from a weak 2019 by doubling in value. Is 2020 shaping up as a good year for shareholders?

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ASX cannabis shares endured a tough 2019, as investors cooled on the latest investing trend.

However, some of the biggest listed groups have bounced back in January and are up as much as 100% this year.

Here's why 3 of the biggest names in the booming cannabis industry have rocketed higher in 2020.

Cann Global Ltd (ASX: CGB)

Shares in this $51.61 million ASX cannabis group doubled since the start of the year, but have since pulled back to be trading for $0.016 per share, up 14.18% year to date.

The current share price is still a far cry from the stock's 52-week high of $0.051 per share set in early September.

The group re-listed in late August 2019 after previously being a mining company called Queensland Bauxite. Shares quickly sank lower and closed out the year at a 52-week low as concerns about profitability grew,

However, steady operational updates and general optimism in the sector have seen Cann Global shares climb higher in 2020.

Cann Group Ltd (ASX: CAN)

Not to be confused with its smaller rival, the Cann Group share price has been soaring higher in 2020.

The group is now the largest of the ASX cannabis shares with a market capitalisation of $215.77 million. While still very much a small-cap, the group's shares are now up 125.80% in the space of just a few weeks.

The Cann Group share price rocketed 25% higher in early January after an announcement with IDT Australia Ltd (ASX: IDT).

The 2 groups reported GMP extraction activities are underway for the first batches of medicinal cannabis resin.

Elixinol Global Ltd (ASX: EXL)

Elixinol Global is another which has seen its share price surge higher in 2020. Elixinol shares are up 86.20% after falling 5.65% lower in today's trade.

Elixinol boasts a market capitalisation of $149.62 million, which makes it one of the largest ASX cannabis groups on the market.

The Elixinol share price finished 2019 in disappointing fashion as its shares crashed to a 52-week low of $0.51 per share in mid-December.

However, renewed optimism and a bullish market have boosted the ASX cannabis company's shares higher to close today's trade at $1.08 per share.

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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