Motley Fool Australia

Why this cannabis company is smoking the market today

marijuana leaf with upward facing arrow
Image Source: Getty Images

The THC Global Group Ltd (ASX: THC) share price has returned from its trading halt and is zooming higher on Tuesday morning.

At the time of writing the cannabis company’s shares are up 11% to 34.5 cents.

Why was the THC Global share price in a trading halt?

THC Global requested the trading halt on Friday pending the release of an announcement relating to the receipt of an additional permit from the Australian Office of Drug Control (ODC) for its operations.

This morning the company revealed that it has received an expanded commercial cultivation permit from the ODC. This has allowed it to commence production towards the supply of medicinal cannabis medicines to an initial 6,000 Australian patients.

According to the release, THC Global will supply medicinal cannabis under the Canndeo brand. Supply will be direct to pharmacies, clinics, and hospitals, meeting the requirements of the Narcotic Drugs Act and Regulations.

In addition to this, the company advised that it has established CanndeoCare for the support of doctors and health care professionals.

CanndeoCare will provide information on prescribing as permitted by the Therapeutic Goods Act from a team of qualified healthcare professionals focused on supporting responsible and legal prescribing of medicinal cannabis.

The company’s CEO, Ken Charteris, said: “We are committed to bringing lower costs and higher quality to Australian patients. Our complete control of cannabis biomass, manufacturing, supply, and support will help achieve this. We expect to supply at least an initial 6,000 patients using Canndeo medicinal cannabis on an ongoing basis commencing from Q2 2020. Further Australian patients and global exports will follow.”

Elsewhere in the industry today, Althea Group Holdings Ltd (ASX: AGH) and Cann Group Ltd (ASX: CAN) shares are also on the rise. They are up 14% and 12%, respectively, at the time of writing. This appears to have been driven by improving investor sentiment.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

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.

Related Articles…

Latest posts by James Mickleboro (see all)