All told, the cannabis shares have grown, cured, and prepared medicinal marijuana products for more than 250,000 Australians. That's how many patients have received prescriptions over the past five years, according to data from the Lambert Initiative for Cannabinoid Therapeutics.

In Victoria alone, some 65,000 people currently have medicinal cannabis prescriptions.

And it's ASX cannabis stocks like Incannex Healthcare Ltd (ASX: IHL), Creso Pharma Ltd (ASX: CPH), and Cann Group Ltd (ASX: CAN) that make it all possible.

But using medicinal cannabis comes with an unexpected legal risk. One that Victoria's lawmakers are working on rectifying.

Victoria's road rules up for an overhaul

In what's likely to be welcome news to shareholders in ASX cannabis stocks, and more welcome still to patients taking medicinal marijuana, Victoria is looking to amend its drug-driving laws to reflect the legality of medicinal cannabis.

As The Guardian reports, the Road Safety Amendment Bill was introduced by newly elected Legalise Cannabis MPs. The bill was said to have support from both major parties. Yesterday, Victoria's government announced it would take up the issue within the next few months.

As it stands, it's a crime for a driver to have any trace of THC (the active component in marijuana) in their system. The problem here stems from the fact that THC can often be detected for many weeks after use. This means drivers with a legal prescription can find themselves guilty of drugged driving even if they're in no way impaired.

Under the Road Safety Amendment, the law would treat medicinal cannabis like other prescription medicines.

Labor MP Harriet Shing is a member of the medicinal cannabis and safe driving working group. She said it was a "significant priority" for the law to distinguish between the presence of THC in a person's system "and impairment".

According to Shing (quoted by The Guardian):

This work has been going on for a number of years now. The working group has actually discussed at length the complexities of this matter and the options and opportunities that might be available.

We need … to find a way through all of this so that all drivers are able to be safe on our roads and so that we can provide those medical supports that Victorians need and indeed deserve.

Legalise Cannabis MP Rachel Payne said, "We are hopeful a solution can be found fast, considering the negative impact the law currently has on Victorian patients every day."

How have these ASX cannabis stocks been tracking?

The ASX cannabis stocks we listed above have all seen big falls in their share prices over the last year.

Over the past 12 months:

• Creso Pharma shares are down 76%
• Cann Group shares are down 31%
• Incannex Healthcare shares are down 70%

The post Buying ASX cannabis stocks? Here's what the Victorian government is considering right now appeared first on The Motley Fool Australia.

ASX cannabis shares Incannex Healthcare Ltd (ASX: IHL) and Bod Australia Ltd (ASX: BOD) are also up 6% and 14% respectively today. For perspective, the S&P/ASX 200 Health Care Index (ASX: XHJ) is climbing 0.33%.

Let's take a look at some recent announcements from this ASX cannabis share.

What's happening?

Creso Pharma advised the market today that it is no longer under ASIC investigation.

In November 2021, ASIC served Creso a notice requiring it to produce documents in connection with an investigation. This year, in August, Creso received a further notice from ASIC.

Today, Creso said it has received a letter from ASIC confirming that the scope of the investigation "no longer includes any suspected contraventions by Creso Pharma" or any directors of the company.

Commenting on this news, Creso said:

The board of the company does not expect that any enforcement action will be taken against Creso Pharma, or any of its current officers or employees.

The company has provided, and continues to provide, assistance to ASIC, as required.

What else?

Yesterday, Creso advised it has signed a scheme implementation deed to acquire Health House International for $4.6 million.

This deal will provide Creso with "another revenue generating operating division".

Meanwhile, on 18 November, Creso announced Mernova Medicinal has received its largest ever purchase orders from Saskatchewan. Mernova Medicinal is a wholly-owned Canadian subsidiary of Creso Pharma.

Creso Pharma share price snapshot

The Creso Pharma share price has descended 72% in the past year. In the year to date, Creso shares have lost 66%.

For perspective, the ASX 200 healthcare index has descended 9% in the past year.

This ASX cannabis share has a market capitalisation of nearly $51 million based on the current share price.

The post Remember ASX cannabis shares? Well, this one is rocketing 50% today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down a further 4.5% to $1.42. This means the lithium miner's shares are down 24% since Monday's close. Investors have been hitting the sell button following a broker downgrade by Macquarie and concerns over demand for the battery making ingredient in China.

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price has sunk 9% to 2.1 cents. Investors have been selling this cannabis company's shares after the company kicked out its chairman, James Ellingford, with immediate effect. While the company didn't comment on the reason for Ellingford's exit, it could be due to his deplorable behaviour on TikTok.

Nickel Industries Ltd (ASX: NIC)

The Nickel Industries share price is down 6% to 93.2 cents. This appears to have been driven by a sharp pullback in nickel prices overnight. According to CommSec, the nickel price recorded a 9.1% decline on Wednesday night. Prices were down as much as 12% in volatile and illiquid conditions. In response, the London Metal Exchange (LME) said it would be conducting enhanced monitoring of nickel trading.

Perpetual Limited (ASX: PPT)

The Perpetual share price is down 14% to $27.09. This follows news that the courts are enforcing its acquisition of rival fund manager Pendal Group Ltd (ASX: PDL). This is likely to scupper the potential takeover of Perpetual by a consortium comprising BPEA Private Equity Fund VIII and Regal Partners.

The post Why Core Lithium, Creso Pharma, Nickel Industries, and Perpetual shares are dropping appeared first on The Motley Fool Australia.

That's partly because similar headwinds facing cannabis stocks worldwide have hit the sector.

Firstly, there's rocketing interest rates. Higher rates have hit growth shares particularly hard as investor risk appetite has waned. Secondly, there's the slowing pace of legalised markets across the world.

Legislation in the United States, the world's largest economy, is being closely watched. But the future of the legal marijuana market in the highly influential nation remains uncertain.

ASX cannabis shares under pressure

So how have these headwinds impacted ASX cannabis shares?

Well, so far in 2022:

• Incannex Healthcare Ltd (ASX: IHL) shares are down 64%
• Creso Pharma Ltd (ASX: CPH) shares are down 65%
• Bod Australia Ltd (ASX: BOD) shares are down 60%

With the US markets having a big impact here in Australia, investors would do well to keep an eye on the midterm election results. The election is being held tomorrow, 8 November, with results expected over the coming days.

Why the US midterm elections matter to investors Down Under

If you're looking at buying ASX cannabis shares, here's what's a stake in the midterm elections.

First, US President Joe Biden has expressed a desire to legalise marijuana on a Federal level. Currently, it remains illegal federally, despite a growing number of states having given recreational and medicinal use the green light.

As you may recall, on 7 October, Biden said he was pardoning everyone convicted of simple marijuana possession under federal law.

US cannabis shares broadly rallied, as did several on the ASX.

Incannex Healthcare shares leapt 11% over two days from the closing bell on 11 October through the end of trade on 13 October.

Bod Australia also shot 11% higher on 11 October.

Creso Pharma went the other direction. The ASX cannabis share lost 25%. Though it should be noted that came after the company announced a shakeup to its board and a potentially unwanted name and branding change proposal.

Now, if the Republicans retake control of either the House or Senate, it's unlikely that marijuana will be legalised on a federal level anytime soon. And, according to most polls, it's likely the Democrats will lose at least one of those chambers of Congress.

But let's not forget how unreliable polls have been in recent years.

The second thing to watch that could have a knock-on effect on ASX cannabis shares is the referendums taking place on a state level.

Voters in five US states – Maryland, Arkansas, Missouri, North Dakota and South Dakota – will decide whether their state joins the legal bandwagon or maintains the status quo.

Maryland is one to pay particularly close attention to.

According to Bloomberg Intelligence analyst Kenneth Shea, "If four or five approve, it would probably be deemed a positive, but if Maryland does not approve, that would definitely be deemed a negative."

Stay tuned.

The post Looking to buy ASX cannabis shares right now? You'll want to watch this appeared first on The Motley Fool Australia.

While all three are deep in the red today amid wider selling action that sees the All Ordinaries Index (ASX: XAO) down 1.4%, that extra attention could offer some tailwinds for cannabis stocks like Cann Group Ltd (ASX: CAN), Incannex Healthcare Ltd (ASX: IHL) and Creso Pharma Ltd (ASX: CPH).

Though if you're looking for information about ASX cannabis share Creso Pharma in the future, you may need to look up Melodiol Global Health Limited instead.

In a release this morning, Creso management announced their intention to seek shareholder approval for rebranding the company name at a future general meeting. Management said the new name represented "the global ambitions of the organisation".

So, why are ASX cannabis shares moving back into the spotlight?

How Biden could rekindle ASX cannabis shares

Since cannabis shares first began trading on the ASX and international exchanges, moves by US state governments and the vacillating prospects for legalisation by the federal government have alternately pushed them higher and lower.

Numerous US states have legalised medicinal and recreational marijuana in recent years. But cannabis has remained classified as a Schedule I substance under the federal Controlled Substances Act. That defines it as having a high potential for abuse, with no currently accepted medical applications.

But US president Joe Biden is following through with an election promise. Biden has said he will pardon everyone convicted of simple marijuana possession under federal law.

Here's what the president tweeted on Friday:

As I've said before, no one should be in jail just for using or possessing marijuana. Today, I'm taking steps to end our failed approach. Allow me to lay them out.

First: I'm pardoning all prior federal offenses of simple marijuana possession… Second: I'm calling on governors to pardon simple state marijuana possession offenses. Just as no one should be in a federal prison solely for possessing marijuana, no one should be in a local jail or state prison for that reason, either.

Biden also called on the US Attorney General "to initiate the process of reviewing how marijuana is scheduled under federal law". He noted it was currently classified "at the same level as heroin – and more serious than fentanyl. It makes no sense."

This US pot ETF surged on the news

While ASX cannabis shares aren't moving higher on Biden's legalisation push today, marijuana-focused exchange-traded fund (EFT) AdvisorShares Pure US Cannabis ETF (NYSEARCA: MSOS) leapt 41% higher in 30 minutes after the word hit the wires last week.

Though investors should take note that even if the US legalises marijuana on a federal level, not every cannabis share trading on the ASX will benefit. But companies with a significant footprint in US markets or the ability to expand into those markets, like Creso, could find some new opportunities ahead.

The post Why is everyone talking about ASX cannabis shares all of a sudden? appeared first on The Motley Fool Australia.

Cannabis shares on the ASX include Cronos Australia Ltd (ASX: CAU), Incannex Healthcare Ltd (ASX: IHL), Emyria Ltd (ASX: EMD), Cann Group Ltd (ASX: CAN) and Creso Pharma Ltd (ASX: CPH).

Let's take a look at some of the cannabis shares on the market.

What's going on?

Many ASX cannabis shares have struggled year to date. Incannex shares have slumped 49% this year so far, while Creso Pharma shares have lost 52%.

Meanwhile, Cann Group shares have fallen nearly 2% and Emyria shares have lost nearly 30%.

Incannex is a cannabinoid and psychedelic compound medicine development company. Despite falling in the year to date, the company's shares have experienced a recent boost on the back of recent news. The company stated it has the "world's largest portfolio of patented medicinal cannabinoid drug formulations and psychedelic treatment protocols".

Commenting on the cannabis industry, Former Incannex chief medical officer Dr Sud Agarwal told The Australian the "industry went off with a bang" in 2016 and 2017. However, he said by 2021 and the second half of early 2022, there has been "a real compression of values". Dr Agarwal, current CEO and founder of Cannvalate Medical Cannabis, added:

That is mainly because a lot of companies haven't performed in terms of revenues but also people who had previously been investors in cannabis probably just got fatigued.

Meanwhile, Cronos develops and sells cannabinoid brands and products in Australia, Japan and Hong Kong. Cronos shares have soared 55% in the year to date.

SG Hiscock Medical Technology Fund manager Rory Hunter singled out Cronos as a company making money. Also commenting in The Australian, he said:

The fact is not all companies are underperforming. Cronos Australia is one ASX-listed company that has strong financial performance.

It's downstream in the value chain, highly scalable and has a cash generative business model. It's also the only ASX-listed company in the industry making money right now.

How have these ASX cannabis shares performed in the last month?

In the past month, ASX cannabis shares appear to be recovering. The Cronos share price has lifted nearly 57%, while Incannex shares have exploded 60% and Emyria shares have jumped nearly 23%.

However, Creso Pharma shares have descended 11% in the last month and Cann Group shares have fallen nearly 7%.

For perspective, the S&P/ASX 200 Health Care Index has climbed 0.7% in the past month.

The post Can ASX cannabis shares ever fully recover? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price is down 11% to 4.35 cents. This morning this cannabis company announced that it has received firm commitments for a $7 million placement at a discount of 4 cents per share. Management intends to use the funds to progress further expansion into the US with its pending acquisition target, Sierra Sage Herbs.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is down 3% to $7.79. Investors have been selling this drinks company's shares after it was the subject of a broker note out of UBS. Its analysts have downgraded the company's shares to a sell rating with a $7.20 price target. UBS feels that Endeavour's shares are overvalued at current levels.

Orica Ltd (ASX: ORI)

The Orica share price is down 9% to $15.64. This has been driven by the commercial explosives company announcing the successful completion of a $650 million equity raising to fund a major acquisition. Orica is acquiring geospatial tools manufacturer Axis Mining Technology in a deal worth up to $350 million. Orica raised the funds at a discount of $16.00 per new share.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 2.5% to $31.68. Investors have been selling Woodside and other energy shares on Thursday after oil prices pulled back overnight. This was driven by higher than expected oil and gasoline inventories in the US. The S&P/ASX 200 Energy index is down 2% this afternoon.

The post Why Creso Pharma, Endeavour, Orica, and Woodside shares are dropping appeared first on The Motley Fool Australia.

The benchmark index closed Monday up 0.05% to 7,148.9 points. Three ASX shares that bucked this trend were Ragusa Minerals Ltd (ASX: RAS), Discovery Alaska (ASX: DAF) and Creso Pharma Ltd (ASX: CPH).

Let's take a look at why these three ASX microcap shares stormed higher on the market today.

Creso Pharma

Creso Pharma shares jumped 9.62% today to 5.7 cents However, in morning trade, the company's share price soared 17% to 6.1 cents. Investors bought the company's shares on the back of a new agreement. Creso is a cannabis and psychedelics company with operations in Switzerland, Canada, Colombia, Israel and Australia. The company has signed a non-binding, non-exclusive heads of agreement (HoA) with Dr Pickles Pty Ltd. Dr Pickles is a tattoo post-care products company with a database of 20,000 online consumers. The agreement provides Creso with the potential to enter the Australian body care market. Creso will look into commercialising Dr Pickles products in North American markets. Creso has a market capitalisation of $67.4 million.

Ragusa Minerals

The Ragusa Minerals share price soared 25% today to 10 cents. The company's share price rocketed on news it has secured new tenements prospective for lithium. Ragusa signed a tenement farm-in agreement with May Drilling Pty Ltd, providing the exclusive right to earn a 90% interest in five tenements. The tenements can be found in the "highly prospective" Litchfield Pegmatite Belt in the Northern Territory. Commenting on the news, chairperson Jerko Zuvela said:

Ragusa is in a strong position to rapidly accelerate the development of our project at a time of record lithium prices and within a proven high-quality lithium district.

Ragusa has a market capitalisation of $10.23 million based on today's closing price.

The ASX microcap share you wish you knew about this morning, Discovery Alaska

Discovery Alaska shares surged 27.69% today to 8.3 cents. However, in earlier trade, this ASX lithium share jumped 62% to 10.5 cents. The company is exploring lithium at the 100% owned Chulitna Project in Alaska, United States. In today's news, the company confirmed lithium mineralisation at 12 historical drill holes. Using a SciAps Z-901 LIBS handheld analyser, the company showed lithium across broad zones. Laboratory analysis will now follow with the aim of establishing a JORC lithium resource. Discovery Alaska has soared 167% in the year to date. The company has a market capitalisation of $14.5 million.

The post 3 ASX microcap shares going gangbusters on Monday appeared first on The Motley Fool Australia.

It wasn't too long ago when all a company needed to do to garner investor interest was mention they were involved in medicinal or recreational cannabis research or production. That was often enough to see speculators pile in, drawn by the promise of new legal markets opening up across the world.

More recently ASX cannabis shares have been shunted out of the spotlight amid soaring commodity and energy prices.

Below we look at five of the top ASX companies operating in the legal marijuana sector. Three are posting strong gains over the past 12 months while two are deep in the red.

For some context, the All Ordinaries Index (ASX: XAO) is up 1.6% since this time last year.

First, the two ASX cannabis shares that have been slipping.

These shares have faced some headwinds

Creso Pharma Ltd (ASX: CPH) develops pharmaceutical-grade cannabis and hemp-based nutraceutical products for human and animal treatments.

Shares in the ASX cannabis company closed as high as $1.01 back in November 2017, in the months leading up to Canada's decision to legalise recreational use.

Since then, Creso has struggled. Over the past year, shares are down 55.8%, currently trading for 5.3 cents.

Another ASX cannabis share that's lost ground this year is Cann Group Ltd (ASX: CAN).

The company cultivates cannabis for both medicinal and research purposes.

Cann traded at $4.01 per share back in January 2018. As with Creso, this was also during the time that the global media were throwing the spotlight on Canada's pending marijuana legalisation amid similar moves underway by numerous US states.

The Cann Group share price is down 23.3% over the past 12 months, currently trading for 33 cents.

Which brings us to the ASX cannabis share gainers…

These ASX cannabis shares have smashed the one-year benchmark returns

Among the big gainers this past year is Emyria Ltd (ASX: EMD).The clin ical-stage biotech company is strongly focused on cannabinoid medicines.

Emyria is a relative newcomer to the ASX, having listed on 12 February 2020. Shares traded at all-time highs of 44 cents in November last year.

The Emyria share price currently stands at 29 cents, up 26% in 12 months.

Up next, we have Incannex Healthcare Ltd (ASX: IHL).

The cannabinoid and psychedelic compound medicine development company hit five-year highs in early March this year, trading for 68 cents per share.

Since then, shares have retraced to the current 46 cents. Still, that's up an impressive 84% since this time last year.

And rounding off our list, the ASX cannabis share with the biggest gain is Cronos Australia Ltd (ASX: CAU).

Operating in the healthcare industry, the company offers both THC and CBD products.

Cronos shares hit record-highs of 38 cents in February this year. The Cronos share price currently stands at 28 cents, up a whopping 129.2% over the past 12 months.

That's one ASX cannabis share that's still smoking hot.

The post Remember when ASX cannabis shares were smoking hot? Where are they now? appeared first on The Motley Fool Australia.

The company closed yesterday's trading at 51 cents and its shares are currently fetching 52 cents, after hitting an intraday high of 55 cents this morning.

Those gains will be welcomed by Creso Pharma shareholders who've watch the ASX medicinal cannabis share tumble 35% over the past month.

So, what's the good news for the Creso Pharma share price today?

Cross-selling opportunities progress

Today, Creso Pharma announced further progress for cross-selling opportunities with its acquisition target, Sierra Sage Herbs LLC.

Creso initially reported its acquisition intentions for the United States-based consumer packaged goods company on 3 February. Sierra Sage Herbs' portfolio includes a range of CBD (cannabidiol) products.

The Creso Pharma share price closed up 5.9% on the day of the announcement.

In today's release, the company reported it's about to send 35,000 of its CannaQIX 50 lozenge products from its Switzerland-based facility to Sierra Sage Herbs in the US. Those will then be marketed through SSH's leading Good Goo brand.

Creso said that the potential cross-selling opportunities could increase its sales in the US and accelerate new product launches.

Commenting on the progress, Creso Pharma's CEO William Lay said:

The initial shipment of Creso Pharma Switzerland products marks an important milestone and will allow us to test the market, as well as learn how consumers will engage with the Company's product suite. This will build an important foundation for us as we progress towards larger product launches upon closing of the transaction.

We are also very pleased with the completion of an initial ImpACTIVE product line through the group's contract manufacturer. By leveraging SSH's manufacturing relationships, as well as marketing, branding, e-commerce and big box retailer expertise and networks, we expect to significantly accelerate impACTIVE's route to market.

The Creso Pharma share price may also be getting a lift from the company's reiteration that it expects "another revenue stream for the company" from the launch of these products in the coming months.

Creso Pharma share price snapshot

If the past month has been difficult for the Creso Pharma share price, the past 12 months have been downright demanding.

Creso Pharma shares have tumbled 72% since this time last year. For some context, the All Ordinaries Index (ASX: XAO) has gained 5% over that same time.

The post Down 35% in a month, why there's good news for the Creso Pharma (ASX:CPH) share price today appeared first on The Motley Fool Australia.

Creso Pharma is raising $5 million through a placement wherein it will offer new shares for 6.9 cents apiece.

At the close of trading, the Creso Pharma share price was 6.9 cents, having tumbled 10.39%.

Let's take a look at what the ASX cannabis share plans to do with its raised cash.

What sent this ASX cannabis share plummeting?

ASX cannabis company Creso Pharma's share price is falling after the company announced a placement to raise $5 million to help fund its expansion into the United States.

As part of the placement, involved investors will receive 1 free option for every share they purchase.

On top of that, the placement's broker, EverBlu Capital, will also receive an option for every free option handed out.

The options will be exercisable at a price of 14 cents each on or before the 18-month anniversary of their issuing.

Creso Pharma non-executive director Adam Blumenthal has committed to purchasing around $318,250 worth of new shares as part of the placement. Blumenthal's participation is subject to shareholder approval at a future general meeting.

The $5 million will be put towards the company's expansion into the United States after it acquires Sierra Sage Herbs and Green Goo brand.

The cannabis company announced its acquisition to the ASX earlier this month, causing its share price to surge 5.8%.

Some of the funds raised through the placement will go towards product development and general working capital.

Speaking on the capital raise, Creso Pharma CEO and managing director, William Lay commented:

These funds will provide us with additional financial flexibility to advance our US-focused growth trajectory, progress a number of new product development initiatives, and explore new opportunities to unlock shareholder value.

The company remains very well positioned to capitalise on the global market for recreational cannabis, CBD products, and psychedelic treatments. We have a number of growth initiatives underway and look forward to providing additional updates as these materialise.

Creso Pharma share price snapshot

This year so far has been rough on the Creso Pharma share price.

It has fallen 15% since the start of the year. It's also 60% lower than it was this time last year.

The post Why did this ASX cannabis share burn 10% today? appeared first on The Motley Fool Australia.

Digital tokens are generated on a blockchain and act as an immutable record of ownership. Because of their characteristics, NFTs have been adopted across the art industry. More recently, brands have opened up to the economical potential of NFTs. Notably, even a number of ASX shares are delving into the new world of digital tokens.

Here's a look at some of the Aussie companies taking a leap of faith in NFTs.

The ASX gaming share striking gold with NFTs

Outside of digital art, gaming has been touted as a powerful use case for NFTs. Mainly, the excitement for this use centres around individuals being able to actually own the digital assets used in the games they play. Playside Studios Ltd (ASX: PLY) is a game developer that is tapping into this new phenomenon.

The independent game developer's maiden voyage into the digital token world took form in its 'Dumb Ways to Die' (DWTD) brand. This is a franchise that was acquired by the company in October 2021 for $2.25 million in cash.

Since then, Playside has announced the successful launch of its BEANS by DWTD NFT project. As we covered yesterday, the company reportedly netted $8.38 million in revenue from the launch of its first NFT collection — comprising of 10,000 2D characters.

Following on from this, Playside already has plans for future NFTs associated with the DWTD franchise. The $38 million raised by the company in November and December will partially fuel further developments.

Liquor gets a digital makeover

As my colleague, Brooke covered earlier in the year — Treasury Wine Estates Ltd (ASX: TWE) is another ASX share cracking the cask of a new market.

Through a partnership with luxury beverage NFT marketplace BlockBar, Treasury Wines has brought its iconic Penfolds brand to the digital world. Precisely 300 bottles of Penfolds 2018 Cabernet Sauvignon Shiraz have been matched with an NFT twin.

The NFTs will act as a redemption ticket for the real bottle at the owner's convenience. Currently, the lowest price for a Penfolds NFT is 0.27 ETH — which is roughly A$1,185 based on Ethereum's (CRYPTO: ETH) price.

An ASX share counting Snoop Dogg as its neighbour

The final ASX share appearing in our compilation of Aussie companies with exposure to NFTs is Creso Pharma Ltd (ASX: CPH).

In its quarterly activities report released last week, Creso Pharma announced it was entering the metaverse. This entails the company buying digital land on a platform known as The Sandbox. The ownership of the digital land itself is tracked via NFTs.

Additionally, the company plans to develop a digital replica of its cannabis cultivation facility. The cannabis company strategically purchased a plot beside the illustrious Snoop Dogg.

The post Which ASX shares have exposure to NFTs? appeared first on The Motley Fool Australia.

• The Creso Pharma share price shot out the blocks this morning before ending the day 6% higher
• It has acquired a US-based company manufacturing both CBD and non-CBD products
• The Creso Pharma share price has fallen 57% in 12 months

The Creso Pharma Ltd (ASX: CPH) share price soared today after the company announced it was to enter the US market.

The cannabis-focused healthcare company revealed it is to acquire Colorado-based consumer packaged goods company Sierra Sage Herbs, LLC.

The Creso Pharma share price jumped 16% to 9.9 cents in early trade before settling back to 9 cents, a 5.88% gain on yesterday's close.

So what does this acquisition mean for investors?

Let's read on…

What fuelled the Creso Pharma share price?

The Creso Pharma share price spiked on today's announcement. The company is now positioned to enter the US market through the acquisition of the already-established US-based business, Sierra Sage Herbs — and more so, the Green Goo brand.

Its product portfolio includes beauty and personal care, first aid, sexual wellness products (non-CBD) and CBD products. The range already has 90,000 points of sale, and a large direct-to-consumer base both in and out of the US.

Creso Pharma believes the US CBD market to be "large and quickly growing", and estimates it will hit US$12 billion by 2026.

The company will acquire SSH for an up-front purchase price of US$21 million (with additional future payments based on estimated revenue targets of US$10 million in CY 2022 and up to US$20 million in CY 2023).

Creso Pharma aims to leverage and grow the existing Green Goo customer base and to introduce them to its own range of products — including therapeutics, nutraceuticals, topicals, and animal feed.

Comment from management

Speaking on the news driving the Creso Pharma share price today, group CEO and managing director William Lay said:

The acquisition of Sierra Sage Herbs and the company's product range is a major milestone for Creso Pharma. It marks entry into the US CBD market and provides a strong foundation to rapidly scale up operations, product development and sales, as well as further M&A transactions.

Creso Pharma is expected to benefit from SSH's existing revenue streams. We expect SSH's product sales to continue growing significantly in coming years, and the transaction implies material accretion on several metrics for Creso Pharma. Coupled with our existing sales channels, we have the potential to significantly grow our earnings profile in the near term.

Sierra Sage Herbs CEO and co-founder Jodi Scott said:

We started this company because we knew that plant-based alternatives could do more. We combined our passions for science, wellness, herbology and wound care into a line of safe, effective all natural products and so began our journey to change first aid as we know it.

That seed has become one of the most disruptive CPG brands in personal care — and this is just the beginning.

Creso Pharma share price snapshot

Over the last 12 months, the Creso Pharma share price has dropped by 57%. However, it is up nearly 10% this year to date.

The company has a market capitalisation of $104.40 million and 1.23 billion shares issued.

The post The Creso Pharma (ASX:CPH) share price jumped 6% today. Here's why appeared first on The Motley Fool Australia.

• ASX cannabis shares could benefit from new COVID-fighting research
• Cannabidiol (CBD) has proven effective in mice
• Researchers hope to launch human trials

ASX cannabis shares haven't exactly shot the lights out over the past full year.

At all.

The Creso Pharma Ltd (ASX: CPH) share price, for example, is down 48% over the past 12 months.

Little Green Pharma Ltd (ASX: LGP) has done a bit better. But the ASX cannabis share is still down 17% since this time last year.

As for medicinal shareholders in marijuana cultivator Cann Group Ltd (ASX: CAN), they've watched the stock fall a painful 55%.

With this month's sharp correction, the All Ordinaries Index (ASX: XAO) has given back much of its gains. But for some comparison, the index remains up 3.6% over the past full year.

With that said, ASX cannabis shares could be in for some healthy tailwinds down the line.

That is if breaking research pans out to show that cannabidiol (CBD), an active ingredient in cannabis, could help prevent COVID-19 infections.

Can CBD help prevent COVID infection?

While there's no definitive answer yet, Live Science reports that research suggests CBD "could block the coronavirus".

Not just any low potency CBD though. But rather "the kind of medical-grade … CBD used to treat seizure disorders".

Should that prove out, it would certainly be welcome news to ASX cannabis shares involved in medicinal production.

Scientists involved in the study caution that CBD won't be a silver bullet that will bring down the pandemic on its own.

However, according to Live Science:

The researchers are hopeful that the compound could be an additional tool in the fight against the SARS-CoV-2 virus — and perhaps other viruses. So far, the team has shown that the compound can help mice fight off COVID-19, and they've turned up suggestive evidence that it might be helping humans, too.

The study's leader, Marsha Rosner, said, "We don't know yet if CBD can prevent COVID, but we think our results provide a strong case for conducting a clinical trial."

While a human clinical trial has yet to be formulated, there are some early promising signs.

According to Rosner, "We show that CBD can stop replication of SARS-COV2 in cells in a dish and that it acts at least up to 15 hours after infection, so that suggests it might be effective even at early times after viruses enter cells."

ASX cannabis shares minnows in the global market

Medicinal marijuana has only been legally available in Australia since November 2016.

And with the past year's sell-off, even the bigger ASX cannabis shares are minnows compared to some of their overseas peers in the United States and Canadian markets.

Cann Group, for example, has a market cap of $96 million. Little Green Pharma's market cap stands at $107 million while Creso Pharma is valued at $101 million.

Certainly not blue-chips.

But if research pans out to show CBD can help stave off COVID infections, they could see some growth potential.

The post ASX cannabis shares in spotlight amid COVID prevention research appeared first on The Motley Fool Australia.

Investors are still crowding out of positions in ASX cannabis stocks at a fairly sturdy pace since our last update. Meanwhile, the S&P/ASX 200 Health Care index (XHJ) has been overly volatile throughout December, but is up strongly this past week.

Nevertheless, most of the ASX cannabis industry remains down as the broader healthcare industry churns along. Moreover, commentary on the sector is light, and a quick read of the charts show just a few names sprouting through the green to fawn their leaves this Christmas.

Now with a less visible walkway out of the grips of COVID-19, markets are again behaving wildly and investors are reshuffling positions once more to stay sheltered in the event of a storm.

Add in language from the US Federal Reserve and the Reserve Bank of Australia (RBA) in tapering their bond-buying programs faster than expected, thus signalling potential rate hikes in 2022.

Let's take a look at what's in store in 2022 for some of this month's top performers coming into the new year.

Incannex Healthcare Ltd (ASX: IHL)

Shares in medicinal ASX cannabis company Incannex Healthcare pared some of the strong gains earned in November, but have held the fort this month.

Investors held onto their long positions as shares remained buoyant across the month so far, dipping slightly amid weakness in the broader sector.

For instance, the market wasn't too phased with an update on Incannex's Nasdaq listing from earlier this month. In that release, the company advised it is in a position to conduct its offering of American Depositary Receipts (ADIs) in January 2022.

The deadline comes after a lengthy and intense period endured by the company to address comments raised by the SEC and other headwinds.

CEO and Managing Director of Incannex Healthcare, Mr Joel Latham said: "We are grateful to our team for their work on the registration process and now look forward to marketing the Offering and listing on Nasdaq in January when institutional investors are back on deck after the relatively short winter holiday period in the northern hemisphere. It's been a momentous year for Incannex with six research and development programs that continue to progress rapidly"

The number of securities to be sold and the price per ADS under any offering have not yet been determined. However, Incannex has applied to list its ADSs on Nasdaq under the ticker symbol "IXHL", which has been granted to Incannex by Nasdaq.

Aside from that, the company recently advised that it has completed dosing of participants in the phase 2, proof-of-concept clinical trial investigating novel cannabinoid combination product, IHL-42X, for the treatment of obstructive sleep apnoea (OSA).

OSA remains a significantly unmet medical need and can lead to a variety of cardiovascular complications, with no FDA approved pharmacotherapies.

All participants in the phase 2 trial have now completed the treatment periods and the data is being analyzed by Novotech, the contract research organization engaged by Incannex to manage the study and resulting data. Delivery of the final clinical study report is anticipated in Q1 2022.

Cronos Australia Ltd (ASX: CAU)

Shares in medicinal cannabinoid player Cronos continue charging higher and have now climbed from 17 cents in November to trade at 20.3 cents today.

Cronos is flat for the month so far, however, the company did announce a key update in December that is likely to be of importance in 2022.

Mid-December the company announced that it had completed its merger with CDA Healh Pty Ltd following the successful satisfaction of all conditions precedent.

Pursuant to the merger, four directors of Cronos have handed in their resignations and subsequently, new directors have been appointed, namely Guy Headley, Dr Benjamin Jansen, Kurt Schmidt and Dr Marcia Walker.

As part of the transaction, the company has today issued a total of 403,552,399 ordinary shares and paid $5 million in cash to CDA shareholders in consideration for the purchase of 100% of the shares in CDA Health.

As a result, CDA Health is now a wholly-owned subsidiary of Cronos Australia and the former shareholders of CDA Health collectively own approximately 73.6% of the issued capital of Cronos Australia (on an undiluted basis).

The merged group is poised to deliver proforma FY21 revenue of $23.1 million – up from $4.6 million in FY20 – whilst only increasing its expense base by around $3 million to $10.2 million.

However, cost of goods sold is also expected to blow out to over $15 million from just $2.578 million in FY20, according to financials released by the company just prior to the merger.

Creso Pharma Ltd (ASX: CPH)

Shares in Creso Pharma have actually been on the down lately, however, the company has been embroiled in a set of peculiar updates that has investors intrigued about what's in store for the ASX cannabis player in 2022.

Just a month ago Creso's chairman, Adam Blumenthal, also a director of EverBlu Capital, was under investigation from ASIC and that it had been involved due to "common directorships".

Nevertheless, when all of the news broke, Creso's share price fell from a 6 month high of around 15 cents and has continued south ever since. At the time of writing, it is fetching 7.9 cents on the trade quote.

However, the company has moved along relatively unfazed, and subsequently provided a positive update early in December.

Creso advised that its' recently acquired Canadian psychedelics business, Halucenex Life Sciences, secured an upgrade to its dealer licence with the Canadian Health regulator.

As such, the company is now permitted to grow its own psilocybin, enabling it to expand its research into the compound as a treatment for various complex disease segments.

Phase II clinical trial to test the efficacy of psilocybin on treatment resistant PTSD is expected to commence Q2 CY2022. This could be a key inflection point for investors to consider at that time next year.

Aside from this, the wider ASX cannabis sector has been more than a mixed bag once again this month. The market is becoming less visibly clear as we roll on into 2022 with surging case numbers and choppy investor behaviour.

The post What's the outlook for ASX Cannabis shares in 2022? appeared first on The Motley Fool Australia.

At the time of writing, Creso Pharma shares are in the green, up 6.25% trading at 10.2 cents.

Creso Pharma is a cannabis and psychedelics company with operations in Switzerland, Canada, Colombia, Israel and Australia. In July, Creso Pharma completed the acquisition of Canadian-based psychedelics company Halucenex Life Sciences.

What did the company announce today?

Today, Creso Pharma had some positive news for the ASX market about Halucenex Life Sciences. Halucenex has secured an amendment to its dealer licence from Health Canada.

The company said this would enable it to produce psychedelic substances including psilocybin, ketamine, LSD, salvia divinorum, harmaline, salvinorin A, and MDMA.

Halucenex also plans to start growing its own botanical psilocybin and manufacturing psilocybin. And is looking to spearhead more research and development on botanic and synthetic psilocybin.

Halucenex will forward with a clinical trial investigating the use of psilocybin to treat post-traumatic stress disorder, pending regulatory approval.

Management commentary

Halucenex CEO Bill Fleming said:

We will now begin the steps towards synthetic psilocybin manufacture and botanical psilocybin growing immediately.

Both of these initiatives have the potential to deliver a number of commercial and research and development benefits and will shape future product development, clinical trials and potential licencing agreements.

Creso Pharma share price snapshot

The Creso Pharma share price has soared 62.70% over the past 12 months. This has outpaced the S&P/ASX 200 Index (ASX: XJO) which is up 9.8% over the same period.

However, in the 2021 year to date, the company's shares are in the red by around 43%. Creso Pharma shares are also down from the monthly high of 15 cents on 8 November.

The company's shares reached a 52-week high of 25.5 cents on 11 December 2020.

The post Here's why the Creso Pharma (ASX:CPH) share price is surging 6% today appeared first on The Motley Fool Australia.

Creso shares closed at a share price of 9.6 cents yesterday afternoon. And that's where they will be staying, at least for a while.

That's because Creso announced that it has requested a trading halt, effective this morning. The company has said that this precedes it "releasing an announcement", with the shares to remain halted until this announcement is made public, or until 2 December (Thursday this week).

And that's all we know for now.

Creso shares notch third ASX trading halt for November

But this isn't Creso's first rodeo, as it were. This ASX cannabis share was also placed in a trading halt just last week on 23 November. Before that, there was another halt, that one on 16 November.

The latter was sparked by an ASX 'speeding ticket' after the company fell more than 9% that day. My Fool colleague Mitchell dived deeper into this at the time.

The former halt was initiated in order for the company to inform investors that the Australian Securities and Investments Commission (ASIC) had requested Creso to "produce certain documents to ASIC in connection with an ASIC investigation".

This notice also informed the market that "ASIC's investigation includes suspected contraventions by the Company [Creso], its officers, agents, employees and representatives in relation to trading in its securities". Creso stressed that "it should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity".

So today's announcement means that it is the third such trading halt Creso has experienced over just the month of November.

Given that the last two halts didn't contain much in the way of good news, shareholders will likely be nervously awaiting what the company has to say next.

Until then, it doesn't look like the Creso share price will be available for public trading.

The post Why is the Creso Pharma (ASX:CPH) share price frozen today? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price is down 4% to 9.6 cents. This morning the cannabis company revealed that it was served with a notice by ASIC requiring it to produce certain documents in connection with an investigation. This "includes suspected contraventions by the Company, its officers, agents, employees and representatives in relation to trading in its securities."

Hansen Technologies Limited (ASX: HSN)

The Hansen share price is down 4% to $5.73. This follows the release of the billing technology company's annual general meeting update. That update reveals that the company is on track for a marginal improvement in operating revenue in FY 2022 excluding the Telefonica contract.

Life360 Inc (ASX: 360)

The Life360 share price is down 9% to $12.30 following the completion of the institutional component of its fully underwritten A$280 million capital raising. Life360 raised the funds at $12.00 per new share, which represents an 11.1% discount to its last close price. These funds are to be used to acquire items tracking company Tile for a purchase price of up to US$205 million. Management notes that the combination of Life360 and Tile creates an integrated market leader in location solutions for all life stages. This enables a seamless experience for families that integrates people, pets and things.

Serko Ltd (ASX: SKO)

The Serko share price is down 11.5% to $6.56. This follows the completion of the travel booking technology company's NZ$75 million placement. According to the release, the placement was fully subscribed at NZ$7.05 per share, representing a 10.2% discount to its last close price. These funds will be used to support the company's growth. This includes its global marketplace strategy, which is aiming to transform Serko from an online booking tool into a distributed marketplace.

The post Why Creso Pharma, Hansen, Life360, and Serko shares are falling appeared first on The Motley Fool Australia.

Investors are punishing Creso on the back of its chairman's probe from ASIC. Today the company notes that on 22 November 2021, it was served with a notice by ASIC requiring it to produce certain documents in connection with an investigation.

Just a week earlier, when the scandal unfolded, Creso advised that it hadn't been served any papers from ASIC at the time.

Let's see what's changed.

What's Creso Pharma caught up in?

The watchdog's notice "identified for the first time that ASIC's investigation includes suspected contraventions by the Company, its officers, agents, employees and representatives in relation to trading in its securities", Creso says.

Creso stresses that "it should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity", as reported by ASIC itself.

The company became involved in ASIC's investigation because of "common directorships" of its chairman Adam Blumenthal, who is also a director at EverBlu Capital.

Blumenthal has today stood aside from his role as chairman of Creso Pharma, to distance its "operations and governance from the ASIC investigation".

Another executive director, Dr James Ellingford, will jump in as interim chairman of the company until a solution is arrived at. The board has also has established a standalone subcommittee to help assist with the investigation.

Investors continue driving in the pain following the announcement, with the selling pressure on Creso's share price occurring at a volume of 90% of its 4-week trading volume.

What's the impact going forward?

According to Creso, not much. It reckons it has taken the necessary steps to comply with the matter and has offered its assistance in the investigation.

Hence, it is business as usual for the cannabinoid player, according to the release. Commenting specifically on its impact, the company added:

Importantly, the existence of the ASIC investigation does not impact on Creso Pharma's ability to continue to operate efficiently. The Company notes that its key business operations in Canada and Switzerland are each managed by in-country senior executives who have been quarantined from this matter and, as such, those operations remain unaffected and are operating as usual. The Company appreciates and is grateful for the continued support of all of its stakeholders.

Investors have been leaving the Creso Pharma party for the last 2 weeks since the news was announced. In the last week alone, shares have lost another 15%, and are now down 48% since January 1.

Despite the turbulence, Creso shares are still up 200% for the year.

The post Creso Pharma (ASX:CPH) share price down 7% as chair stands aside amid ASIC probe appeared first on The Motley Fool Australia.

In early afternoon trade, the cannabis company's shares are down 9% to 10 cents.

This means the Creso Pharma share price is now down approximately 29% this week.

Why is the Creso Pharma share price crashing this week?

Investors have been heading to the exits in droves this week. This follows the company confirming reports that the Australian Federal Police were executing a search warrant at the Sydney offices of Everblu Capital.

This was to assist the Australian Securities and Investments Commission (ASIC) with an investigation.

Creso Pharma Chairman, Adam Blumenthal, is a director of Everblu Capital.

And while the company advised that it is yet to be able to independently verify the nature of the enquiry or determine whether the matter relates to Creso Pharma, clearly some shareholders aren't waiting around to find out.

Everblu Capital has been Creso Pharma's corporate advisor and lead manager of its various capital raisings in recent times. This has seen Everblu receive millions of Creso shares and options, and it's earned significant fees since its appointment.

At the end of FY 2020, EverBlu owned about 20.1 million shares and about 66.3 million options.

Since then, EverBlu Capital was involved in advising Creso Pharma on its bonus options issue in October.

What's next?

Given EverBlu Capital's close ties with Creso and the uncertainty caused by this investigation, it is likely that the Creso Pharma share price will remain volatile until the matter is resolved.

When that will be is unclear at this stage.

The post Why the Creso Pharma (ASX:CPH) share price is down 29% this week appeared first on The Motley Fool Australia.