Cann (ASX:CAN) share price shoots 16% higher on positive update

The Cann Group Limited (ASX: CAN) share price has jumped 16% today on news the company has shipped its first order to the United Kingdom.

| More on:
cannabis leaves on a rising line graph representing growth of ASX cannabis share price

Image source: Getty Images

The Cann Group Ltd (ASX: CAN) share price has rocketed up today on news the company has shipped its first order to a supply partner in the United Kingdom. At the time of writing, the Cann share price is up 13.3% at 56 cents after reaching an early high of 57.5 cents.

What did Cann announce?

In today’s release, Cann advised that United Kingdom distribution partner, Astral Health has received its first shipment of medicinal cannabis oil.

Astral Heath, a member of the LYPHE Group, took delivery of the products as part of LYPHE’s participation in Project Twenty21.

The exclusive supply agreement was formed with Astral Health in May 2020. The contract is valid for 5 years and will see Cann provide medicinal cannabis products to LYPHE through the Project Twenty21 initiative.

What is the LYPHE group?

The LYPHE Group is a leading European company that provides medicinal cannabis across an array of distribution channels. These include medicinal cannabis clinics, online pharmacies, and healthcare practitioner training.

More on Project Twenty21

Launched in November 2019, Project Twenty21 is a registry that enables access patients to acquire medical cannabis. In addition, the program records information on how effective the treatment is on each patient.

So far, more than 8,000 patients have enrolled into the registry through healthcare clinics or subscribing independently. This has made it the largest medicinal cannabis recruitment program undertaken in Europe. By the end of 2021, Project Twenty21 aims to enlist more than 20,000 patients, further improving access to treatment.

What did management say?

Cann Group CEO Shane Duncan said the company had worked hard to obtain all the necessary permit approvals.

With UK doctors able to prescribe Cann’s medicinal cannabis products to patients from next week, he said:

It is an exciting step forward to get this first shipment off to support such a significant initiative in the UK, which helps position Cann as a leading supplier of medical cannabis in international markets that are continuing to gain momentum.

Cann share price summary

The Cann share price has been hit particularly hard during the wider COVID-19 market selloff this year. Its shares plunged from a 52-week high of $1.83 in January to an all-time low of 29 cents in October. That reflects an 84% decrease for shareholders over that period of time.

Although the Cann share price has surged higher today, it still has a long way to go to reach pre COVID-19 levels.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News