How have ASX cannabis shares been performing so far in 2022?

The sector has held its own during volatile times.

| More on:
Young adult male farmer standing smiling in his indoor greenhouse full of herbal cannabis plants at a cannabis cultivation facility

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX cannabis shares have fared quite well through recent market volatility
  • Three names stand out over the last three months
  • All three have recorded healthy gains during the past year

While it hasn't been immune to the big reset in Aussie markets, the cannabis sector has certainly remained buoyant this year.

Whilst most sectors have seen last year's gains evaporate in 2022 so far, ASX cannabis shares appear to be flowering along nicely, with several names outstripping peers in adjacent markets.

Here are three standouts from the bunch.

Emyria Ltd (ASX: EMD)

Emyria has been busy these past few months – very busy. In February, the biotech advised it had expanded its proprietary MDMA analogue library with the University of Western Australia.

The following month, Emyria announced the launch of its "second highly bioavailable, ultra-pure CBD capsule, EMD-RX7".

According to the company, "EMD-RX7 demonstrates more than 4 times the bioavailability (a measure of the amount of the drug reaching the bloodstream) compared to the only registered CBD oil – Epidyolex – in a recent pharmacokinetic animal study meaning lower doses may be required for clinical results."

Last week, it provided more colour on its first ultra-pure CBD medicine, EMD–RX5. It said that patient dosing for a phase one clinical trial was completed and that preparations had been made for phase three pivotal trials as well.

At the time of writing, the Emyria share price is trading up 3.23% on the day at 32 cents. That takes its gains to 60% over the last 12 months.

Cronos Australia Ltd (ASX: CAU)

Shares in Cronos Australia have remained buoyant these past 12 months with a near 118% return. Shares are also up 52% this year to date to now trade at 30 cents.

In recent times, the big move for this cannabis player was its merger with CDA Health Pty Ltd back in December, placing the latter as a wholly-owned subsidiary of Cronos.

CEO Rodney Cocks said the merger will enable Cronos to "take the company to the next level of growth".

In its most recent earnings release, Cronos printed cash receipts of $28.5 million and was net cash flow positive from operations (CFFO) with $9 million in CFFO for HY FY22.

It also mentioned that "[m]edicinal cannabis unit sales for the first half of FY2022 exceed unit sales for all of FY2021".

Incannex Healthcare Ltd (ASX: IHL)

Shares in Incannex have also held returns over the last year, although have lost some of those gains in March. After some volatility, shares now rest at 46 cents apiece, after plunging from a high of 73 cents in March.

Investors had a tough time digesting the company's news it executed a term sheet to acquire APIRx Pharmaceutical USA, LLC.

The price was US$93 million and Incanncex mentioned that it is budgeting $5-$10 million on product expenditure for APIRx in the first year of operation.

As TMF reported at the time, "the company claim[ed] it now has an expanded total addressable market (TAM) of more than US$400 billion annually."

Since the announcement, shares have slipped hard and are down 31% in the past month of trade, but are up 77% in the last year.

TradingView Chart

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Cannabis Shares

A man in a horse head mask and suit jumps for joy on a beach.
Cannabis Shares

Could ASX cannabis shares be set for a smoking hot rebound?

ASX cannabis stocks could be set for a strong finish to 2024.

Read more »

Man in a cannabis greenhouse looks unhappy and puts his thumb down.
Cannabis Shares

Why are these 2 ASX cannabis stocks sputtering today?

Up 174% in 2023, this ASX cannabis share is giving back some more of its gains today.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Cannabis Shares

Guess which ASX cannabis share is crashing 36% following an FDA blow

Rookie mistake: This cannabis share just missed out on FDA approval for a simple reason.

Read more »

A Cronos Australia farmer and ASX cannabis shares investor stands in a field of cannabis plants and smiles at the camera
Cannabis Shares

Could ASX cannabis shares be set for a resurgence?

The world's legal and medical fraternities are taking small steps forward in the medicinal cannabis movement.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Cannabis Shares

This ASX cannabis stock is up 160% since June, and it has an FDA ruling coming up!

Investors are very excited about this cannabis stock.

Read more »

two men in formal business clothing closely inspect a bud from a cannabis crop.
Cannabis Shares

Why ASX cannabis shares just jumped back into the spotlight

ASX cannabis shares operate in a nation where medical marijuana is legal but recreational use remains broadly forbidden.

Read more »

A hip young man with a beard and manbun sits thoughtfully at his laptop computer in a darkened room, staring at the screen with his chin resting on his hand in thought.
Cannabis Shares

Should I buy Incannex shares while they're at multi-year lows, or steer clear?

Is the cannabis-based pharma company a bargain buy right now?

Read more »

Man in the green house growing medical cannabis
Cannabis Shares

A $3k investment in ASX cannabis stock Incannex 5 years ago is now worth $15,000. Here's why

This medicinal cannabis company has been a rare winner in its field.

Read more »