The party started when Canada and the United States moved to legalise not just medicinal cannabis but also recreational use among adults. That was a national decision in Canada, while in the US, it remains a state-by-state call.

Australia's federal government, rarely one to grab the reins, eventually followed suit and legalised medical cannabis use in 2016. In 2018, certified companies were given the green light to export marijuana products from Australia.

This saw many ASX cannabis stocks rocket higher in 2021 and into 2022.

And then many shareholders got burnt.

Here's how these three former smoking hot stocks have performed over the past five years:

• Little Green Pharma Ltd (ASX: LGP) shares are down 74%
• Cann Group Ltd (ASX: CAN) shares are down 88%
• Ecofibre Ltd (ASX: EOF) shares are down 99%

As for the past 12 months, only Little Green Pharma has managed to stem the bleeding, with shares trading at 12 cents apiece today, right where they were 12 months ago.

Ecofibre shares, on the other hand, have plunged 62% over the 12 months, while Cann Group shares are down 52% since this time last year.

But with medicinal cannabis sales in Australia reported to be "booming", could these beaten-down ASX cannabis stocks reignite?

ASX cannabis stocks in fast-growing market

Citing the Penington Institute's latest annual Cannabis in Australia Report, The Guardian notes medicinal marijuana sales Down Under look to have quadrupled over the last two years.

And the uptake in medical cannabis still appears to be gaining momentum.

According to the report, 2.87 million units were sold in the first half of 2024, up 71% from the 1.68 million units sold in the second half of 2023.

The report said Aussies spent around $234 million on medicinal cannabis in 2022, $448 million in 2023, and $402 million in the first half of 2024.

With this growth in mind, ASX cannabis stocks could be eyeing a $1 billion annual market by the end of 2024.

"We're expecting that by the end of this year it will have reached a billion [dollars], which is more than quadrupling the 2022 numbers," Penington Institute CEO John Ryan said.

Recreational legalisation not on the short-term cards

In both the US and Canada, recreational use of marijuana was legalised years after it was given the green light for medicinal use.

Wayne Hall, from the National Centre for Research on Youth Substance Use Research at the University of Queensland, noted (quoted by The Guardian), "When you create a medical cannabis program … the pressure is often brought to bear to expand it, so it merges into a de facto legal cannabis market for adults."

Legalised recreational use in Australia would likely send ASX cannabis stocks marching higher.

To date, only the Australian Capital Territory has made this move. The ACT doesn't allow commercial sales, instead mandating that people grow their own.

Investors in ASX cannabis stocks hoping to see the Australian government legalise recreational use were handed a setback yesterday when the bill was voted down.

The post ASX cannabis stocks eyeing $1 billion domestic market appeared first on The Motley Fool Australia.

That's a far cry from the heady days of 2019 and 2020 when ASX cannabis shares joined their American-listed peers in setting investors' portfolios ablaze.

That boom came amid the early excitement over marijuana legalisation in Canada along with multiple US states.

But like their global peers, Aussie-listed pot stocks have mostly trended lower since then.

And the past year, which saw the All Ordinaries Index (ASX: XAO) gain 4.1%, is no exception.

Here's how these four leading ASX cannabis shares have performed over the 12 months:

• Botanix Pharmaceuticals Ltd (ASX: BOT) shares have soared 144.4%
• Little Green Pharma Ltd (ASX: LGP) shares are down 18.8%
• Ecofibre Ltd (ASX: EOF) shares are down 65.6%
• Cann Group Ltd (ASX: CAN) shares are down 61.3%*

(*Cann Group shares remain suspended as of 1 March.)

With the exception of Botanix, that's some pretty poor returns from the sector.

But ASX cannabis shares could be set for some fresh tailwinds thanks to none other than the US Drug Enforcement Administration (DEA).

Here's what could set ASX cannabis shares alight

For 50 years now marijuana has been classified as a Schedule I substance in the US. That's the same rating given to drugs like heroin, cocaine and LSD, substances considered to have no acceptable medicinal uses and that are prone to abuse.

But the DEA has been reviewing that classification in recent months. And yesterday (overnight Aussie time), news broke that the agency was moving to reclassify cannabis to a lesser category.

That caused some major excitement in American markets.

Shares in Canadian-listed Canopy Growth Corp (TSE: WEED), for example, rocketed 80%.

So far the reaction among ASX cannabis shares is mixed. While Little Green Pharma and Botanix shares are just about flat today, Ecofibre shares are up 13.3% at the time of writing.

How would the DEA's reclassification change market dynamics?

Moving cannabis to a less onerous drug classification would lower taxes on pot stocks and could also encourage more US states to legalise it, offering a growing legal market.

It would also help cannabis companies in the US to access banking services.

Dan Ahrens, managing director of Advisorshares Investments said (quoted by Bloomberg), "There's been a lot of rumours coming out in the last few days, but this looks official… I think it makes it easier for the House and Senate to act on SAFER Banking."

And, as Jefferies analyst Owen Bennett notes, a reclassification by the DEA could see more institutional investment flow into the sector.

While that would likely be more beneficial to American listed stocks, ASX cannabis shares could enjoy some welcome tailwinds from this shift.

"The major reason current multiples are depressed is lack of institutional ownership," Bennett said.

He added that the DEA's move:

Would hugely improve the prospects of full federal legalisation within the next five years, with a critical piece of this move making it easier to study cannabis and thereby fill in the data gaps where there may be concerns around its widespread use among the population.

The post Could ASX cannabis shares be set for a smoking hot rebound? appeared first on The Motley Fool Australia.

This is a young industry that is largely dependent on the world's legal and medical fraternities to accept and approve medicinal cannabis as a treatment for many conditions and adjust laws accordingly.

The process for change in this regard is incredibly slow, which makes ASX cannabis shares very volatile.

Let's look at what's been happening lately.

News from the United States

Our Fool colleagues in the US report rising new excitement over cannabis stocks, but it's based purely on speculation.

There are two bits of news that have US cannabis shares investors excited.

Firstly, the US Department of Health has recommended a downgrade to the scheduling of marijuana from a Schedule 1 substance — the same category as heroin — to Schedule III.

The recommendation was issued late in August and follows an 11-month review.

The US Drug Enforcement Administration (DEA) defines Schedule III drugs as having a "moderate to low potential for physical and psychological dependence".

Nothing has happened as a result of the recommendation yet.

Meantime, a bipartisan group of US senators are pushing for state-legalised cannabis businesses to receive access to finance.

The group introduced the Secure and Fair Enforcement Regulation (SAFER) Banking Act in the Senate today, according to Bloomberg Law.

The bill has been around for a few years but has been held up at various points.

Its introduction in the Senate is good news, but nothing consequential for US or ASX cannabis shares has happened yet.

How are ASX cannabis shares performing of late?

US cannabis shares such as Aurora Cannabis Inc (NASDAQ: ACB) and Canopy Growth Corp (NASDAQ: CGC) have rocketed since news of the health department's recommendation broke on 30 August.

But not much has happened for ASX cannabis shares.

Over the same time period:

• Botanix Pharmaceuticals Ltd (ASX: BOT) shares have remained steady at 19 cents
• Cann Group Ltd (ASX: CAN) shares have fallen 7.7% to 12 cents
• Incannex Healthcare Ltd (ASX: IHL) shares have fallen 18.8% to 6.5 cents
• Ecofibre Ltd (ASX: EOF) shares have risen 17.7% to 20 cents
• Althea Group Holdings Ltd (ASX: AGH) shares have fallen 15% to 3.4 cents
• Little Green Pharma Ltd (ASX: LGP) shares have fallen 8.8% to 16 cents

As we covered, Botanix was in the news yesterday after the ASX issued a price query.

The Botanix share price hit a 52-week high of 21 cents, up an impressive 160% since the start of June.

Aussie news affecting ASX cannabis shares

Australia legalised medicinal marijuana in 2016.

Recreational use remains illegal except in the ACT.

In June, the Legalise Cannabis party introduced a bill in the Western Australia, Victoria, and New South Wales parliaments to legalise marijuana for personal use as well as medical reasons.

The bill is called the Regulation of Personal Adult Use of Cannabis Bill.

The Australian Therapeutic Goods Administration (TGA) down-classified two psychedelics to enable their use in treating mental illness in July.

The psychedelics are MDMA for post-traumatic stress disorder (PTSD) and psilocybin for treatment-resistant major depressive disorder.

Only a psychiatrist can prescribe them.

Reset Mind Sciences CEO Shaun Duffy said the TGA's decision was "truly groundbreaking".

Little Green Pharma said the TGA move meant Australia "will become the first market in the world to recognise psychedelics as medicines … ".

In August, we learned the Victorian Government will conduct an 18-month Australia-first trial to test medicinal cannabis users' driving abilities.

Current roadside drug testing laws allow police to test for the mere presence of tetrahydrocannabinol (THC).

Medicinal cannabis users argue that they are only ingesting tiny amounts of THC in their health therapies.

Therefore, the law should be updated to test for impairment rather than just presence.

Foolish takeaway

All of these small changes represent the slow-moving wheel of the cannabis industry's evolution.

For this reason, ASX cannabis shares remain highly speculative investments.

While some US cannabis stocks have surged on recent news, the same can't be said for ASX shares.

The post Could ASX cannabis shares be set for a resurgence? appeared first on The Motley Fool Australia.

The Cann Group Ltd (ASX: CAN) share price, for example, skyrocketed almost 300% between September 2017 and January 2018 amid the federal government allowing medicinal cannabis exports and booming M&A deals taking place across the sector.

Unfortunately, money came out of this sector as fast as it went in.

Fast forward to today, most ASX cannabis shares sit around multi-year, if not all-time lows. It isn't unusual to find players down 80-90% from their all-time highs.

Despite being beaten up and battered, these cannabis shares have managed to find somewhat of a floor in recent months.

While trading sideways for the past 1-2 months, this week has proven to be a small win for these beaten-up stocks.

The Cann Group share price is up 20.5% this week to a 3-month high of 34 cents.

Althea Group Holdings Ltd (ASX: AGH) is up 9.5% to a 2-month high of 29 cents.

Similarly, Ecofibre Ltd (ASX: EOF) is up 4.7% to a 4-month high of 89 cents.

Why ASX cannabis shares are bouncing higher?

ASX cannabis shares are likely taking off after a 7.1% jump in the Global X Cannabis Exchange Traded Fund (ETF) on Tuesday night.

The cannabis ETF invests in companies across the industry, involved in the legal production, growth and distribution of cannabis and industrial hemp.

Canadian and US-listed companies make up more than 90% of its allocation but the ETF does have a small allocation in Creso Pharma Ltd (ASX: CPH).

Last month, the Motley Fool US reported that a panel from the US House of Representatives is preparing for a vote to "federally legalise marijuana" outright.

This move will look to "decriminalise marijuana federally" in the US by removing it from the Controlled Substances Act.

The post Beaten up ASX cannabis shares showing signs of life appeared first on The Motley Fool Australia.

But some sectors inevitably performed better than others. That's capitalism for you. And the sector we're looking at today – ASX cannabis shares – certainly had its fair share of both winners and losers.

So let's check out how this popular sector fared in the financial year that has just passed us by.

How did the top ASX cannabis shares fare in FY21?

Below is a table of how the ASX's top cannabis shares performed in FY2021:

As you can see, it was something of a mixed bag. If you were lucky enough to hold Creso Pharma shares over the financial year, you would have enjoyed a very pleasing gain of more than 350%. However, if you were unfortunate enough to have money invested in Ecofibre, you instead would have had to cop a nasty near-70% loss for your time, effort and capital.

Highs or red eyes for ASX cannabis?

While each company had its own individual trials, triumphs and tribulations, it's worth noting this is a sector that often moves in tandem. This is due to the unique but uniform challenges ASX cannabis shares all face. The most prominent of these is, of course, the legal status of cannabis itself.

Whilst recreational use of cannabis/marijuana is still illegal in many countries, including Australia, recent changes have been happening.

Perhaps at the forefront of these changes is the ever-evolving regulatory landscape in the United States. As it currently stands, 18 US states currently allow recreational use of cannabis.

Most recently, we saw the state of New York 'legalise it' back in April. This saw an immediate boost to the values of ASX cannabis shares despite the Australian market implications being limited.There is also debate in Mexico over the potential legalisation of cannabis. If this went ahead, it could open up a market of nearly 130 million people.

Another headache…

On the other hand, ASX cannabis shares have seen some setbacks in this arena as well. Last October, New Zealand held a 'reefer-rendum' on legalising recreational use of cannabis across the ditch. It failed, meaning that, at least for now, recreational use of cannabis remains illegal in the Land of the Long White Cloud. This was a big setback for the ASX cannabis sector here in Australia.

But, as you may have noted, there were some clear winners in this space regardless. As we noted earlier, Creso Pharma was the top performer in its sector.

Creso managed to capture investor attention through its acquisition of Halucenex Life Sciences. Halucenex specialises in psychedelic compounds and stands to benefit if the US state of California legalises psilocybin (the active drug in 'magic mushrooms'). This is still currently being debated in the Californian Congress but investors certainly seem optimistic.

It's also worth noting that some of the worst-performing ASX cannabis shares of FY21 were once known as some of the best performers.

Companies like Althea and Xalra were top-performing companies as recently as last year. But the tide has definitely turned for some of these companies' share prices. Mostly, complications surrounding the pandemic, as well as regulatory issues, are mostly to blame here for the woes of Ecofibre and Cann Group in particular.

The post Blazing it? How the top ASX cannabis shares performed in FY21 appeared first on The Motley Fool Australia.

During early afternoon trade, the hemp company's shares are fetching for $1.15, up 6.98%. This brings Ecofibre shares to a gain of around 30% over the last 4 trading days.

How is Ecofibre performing?

Investors are snapping up Ecofibre shares in light of the company's impressive sales figures for its Ananda Professional business.

Ecofibre's Ananda Health division is the number one provider of hemp-derived CBD for retail pharmacies in the United States. The business produces nutraceutical products, topical creams and ointments. There is even a CBD oil specifically for pets such as dogs and cats.

In its announcement, Ecofibre advised that its Ananda Professional CBD products have recorded their highest revenues since September 2020. The strong result has seen the business achieved sales of around $800,000 for the month of May. September 2020 sales attained roughly $900,000.

Management noted that while the sales rebound is positive, monthly results may fluctuate in the short term.

Ecofibre CEO, Eric Wang touched on the company's progress saying:

This result reflects a combination of trading conditions improving in our core independent pharmacy channel, ongoing investment in new products and direct engagement to support our pharmacy partners.

As we enter a post-COVID environment, we are beginning to see many of our pharmacy partners begin to return to normal operations. Whilst there is still a lot of focus on COVID related activities such as vaccines, it is pleasing to see signs of recovery in our core channel.

Additionally, sales of the new Ananda Professional Chewable products and Women's Health range have been encouraging. We also launched Ananda Professional's new direct-to- consumer e-commerce portal with 70 pharmacies in early May, and the business is now focused on building momentum through positive early-adopter experiences.

Ecofibre share price snapshot

While today's update has lifted Ecofibre shares even further, yearly share price performance has not been so kind to investors. The company's share price has fallen more than 50% from the past 12 months and is down almost 40% year-to-date.

Ecofibre has a market capitalisation of approximately $397 million, with approximately 341 million shares on issue.

The post Why the Ecofibre (ASX:EOF) share price is surging 30% higher this week appeared first on The Motley Fool Australia.

Four ASX shares that didn't let that hold them back are listed below. Here's why they are storming higher:

Brickworks Limited (ASX: BKW)

The Brickworks share price jumped 11% to $23.40. Investors were buying the company's shares after it provided a positive update on its joint venture Industrial Property Trust. According to the release, Brickworks now expects to deliver record earnings from its property portfolio for FY 2021. It is expecting its property earnings before interest and tax to be in the range of $240 million to $260 million, up from $129 million a year earlier.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price rocketed 23% higher to $1.07. This was despite there being no news out of the cannabis and hemp company on Wednesday. However, earlier this week, the company released a sales update which revealed that its core Ananda Professional business recorded its highest revenues since September 2020. It noted that as the world enters a post-COVID environment, it is beginning to see many of its pharmacy partners return to normal operations.

Frontier Digital Ventures Ltd (ASX: FDV)

The Frontier Digital Ventures share price stormed 4% higher to $1.28. This morning the emerging markets-focused online marketplace company announced that it has entered into a sale agreement to acquire the remaining 49% interest in InfoCasas. This consolidates its position in South America with three wholly owned businesses across six key countries.

Ramsay Health Care Limited (ASX: RHC)

The Ramsay share price climbed 2% to $63.49. Investors were buying the private hospital operator's shares following the release of a positive broker note out of Citi. According to the note, the broker has upgraded the company's shares to a buy rating with an increased price target of $76.00. It believes Ramsay is well-placed for growth once the healthcare sector returns to normal. And while it suspects that it may need to raise capital, this is priced into its valuation.

The post Why Brickworks, Ecofibre, Frontier Digital, & Ramsay are storming higher appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are storming higher:

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price is up 9.5% to 86.5 cents. Investors have been buying the hemp company's shares following the release of an investor update this morning. That update revealed improved momentum in its core United States independent pharmacy business. In April, the Ananda Professional pharmacy segment saw its best month since September 2020.

MoneyMe Ltd (ASX: MME)

The MoneyMe share price has jumped 7.5% to $1.45. This follows the release of a trading update for the month of April. According to the release, the digital credit company delivered record originations of $47 million for the month. This is up 693% over the prior corresponding period. In light of this, the company now expects its gross customer receivables to exceed $300 million in FY 2021. This will be up at least 225% year on year from $134 million in FY 2020.

Nearmap Ltd (ASX: NEA)

The Nearmap share price has surged 14.5% higher to $2.36. This follows the release of an update after the market close on Tuesday. According to the release, trading has remained strong since the end of the first half. As a result, it now expects to deliver annual contract value (ACV) of $128 million to $132 million in FY 2021. This compares to its previous guidance of $120 million to $128 million and will be a 20% to 24% increase on FY 2020's ACV of $106.4 million.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price has stormed 5.5% higher to $3.24. This follows news that the biotechnology company has raised $5.4 million from institutional and sophisticated investors in an oversubscribed placement. These funds were raised via the issue of 1.8 million new shares at $3.00 per share. Race Oncology intends to use the new capital to help develop its Bisantrene cancer drug. 

The post Why Ecofibre, MoneyMe, Nearmap, & Race Oncology shares are storming higher appeared first on The Motley Fool Australia.

At the time of writing, the hemp company's shares are swapping hands for as much as 86.5 cents apiece, up 9.4%.

What did Ecofibre announce?

Investors are fighting to get a hold of Ecofibre shares following the company's strong recovery of business growth.

In a statement to the ASX, Ecofibre revealed improved momentum in its core United States independent pharmacy business. In April alone, the Ananda Professional pharmacy segment saw its best month since September 2020.

As a result, the company reaffirmed its profit guidance released in February for the FY21 period.

Ecofibre expects profit to come at a loss of $1.5 million for the second half of the year. This will contribute to an overall forecasted loss of around $7 million for FY21.

Pleasingly, the H2 FY21 profit is looking to include roughly US$1.8 million from employee retention credits. The funds to be received fall under former President Trump's 'Taxpayer Certainty and Disaster Tax Relief Act of 2020'. This was a coronavirus relief and spending bill to assist businesses that were forced to close during the government-mandated lockdown.

Ecofibre CEO, Eric Wang touched on the company's progress saying:

Since the middle of March, we have seen a good return to growth in our core independent pharmacy channel as COVID related disruptions subside.

We see trading conditions improving for our core independent pharmacy channel as the US moves into post-COVID environment. We look forward to Ananda Health revenues returning to pre-COVID levels in due course.

Ecofibre share price snapshot

While today's positive announcement lifted Ecofibre shares, yearly performance has not been so kind to investors. The company's share price has fallen more than 70% from the past 12 months and is down almost 60% year-to-date.

Ecofibre has a market capitalisation of approximately $271 million, with about 339.3 million shares on issue.

The post Why the Ecofibre (ASX:EOF) share price is soaring 9% higher 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 sinking:

Airtasker Ltd (ASX: ART)

The Airtasker share price is down 3.5% to $1.33. This appears to have been driven by profit taking after a solid gain on Wednesday following the release of its third quarter update. That update revealed that the company has been performing stronger than expected since its IPO earlier this year. This led to Airtasker upgrading its guidance for FY 2021.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price has sunk 10.5% to 94.5 cents. This may be a delayed reaction to the hemp company's quarterly update earlier this week. Ecofibre reported quarterly revenue of $6.8 million, which was down 10% on the second quarter and 52% on the prior corresponding period. Hemp-based face mask sales boosted its performance a year ago.

Nuix Ltd (ASX: NXL)

The Nuix share price is down almost 6% to $4.02. This is despite there being no news out of the investigative analytics and intelligence software provider. However, investors have been selling the company's shares since the release of a trading update and guidance downgrade this month. Disappointingly, the Nuix share price hit a record low of $3.95 earlier in the day.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down almost 4% to $39.87. Investors have been selling the retail conglomerate's shares following the release of its third quarter update. For the three months ended 31 March, Woolworths posted a 0.4% increase in group sales to $16,566 million. While this sales result was stronger than expected, the company's outlook for the fourth quarter appears to have spooked investors.   

The post Why Airtasker, Ecofibre, Nuix, & Woolworths shares are sinking appeared first on The Motley Fool Australia.

Insider buying can demonstrate a strong belief in the company. At a minimum, it shows those at the top have skin in the game.

Here are some shares that have seen insider buying over the last few months.

2 ASX technology shares

ELMO Software Ltd (ASX: ELO)

The human resources and payroll platform provider announced to the ASX a change in director's interest on 17 February. Independent non-executive director, Leah Graeve, made an on-market purchase of 1,531 shares, amounting to $9,924.66.

This occurred the day after ELMO Software released its half-year results. Despite the company reporting a 29.3% growth in revenue for the period, shares sold off the next day. Potentially, this provided an appealing price for the director to load up.

The ELMO Software share price is still trading below its pre-COVID levels, as are many other ASX shares. In the past 12 months, shares have fallen 27%.

Appen Ltd (ASX: APX)

When looking at the last 6 months for the artificial intelligence data services company, it certainly hasn't been pretty. Disappointments and downgrades have wiped 51% from the Appen share price since September.

However, that's didn't stop non-executive director, Vanessa Liu, from grabbing $25,000 worth of shares on Christmas Eve. The disclosure to the ASX states the purchase was for 1,000 shares at $25.00 a pop.

As it turns out, the pre-Christmas purchase wasn't much of a gift, as the shares have collapsed a further 33.5% since.

The Appen share price has fallen 25% in the past 12 months.

2 ASX medical shares

Nanosonics Ltd (ASX: NAN)

Nanosonic shares have been climbing this week after the disinfectant technology company posted its half-year results last week. Initially, the market reacted negatively to the slower growth, which was impacted by COVID-19.

Two days later, non-executive director Lisa E. McIntyre loaded up with 8,150 shares. As shown in the disclosure to the ASX, the total investment amounted to $49,981. Only a day beforehand Morgans upgraded Nanosonics' shares to an add rating with a $6.69 price target.

The Nanosonics share price has also underperformed the S&P/ASX 200 Index (ASX: XJO), with the company's shares falling 5.2% in 12 months.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price has been under pressure this month after the hemp health product maker announced disappointing half-year results. The company reported a 49% reduction in revenues and a substantial $5.5 million bottom-line loss. 

As the share price fell this month, so did the value of CEO Eric Wang's recent purchase. In December, Eric Wang disclosed the purchase of 350,000 shares at a total value of $745,182. The value has since diminished to $446,250 based on today's current price.  

The Ecofibre share price has fallen 49.6% in the past year.

The post Here are 4 ASX shares that insiders have been buying recently appeared first on The Motley Fool Australia.

As reported by the ABC, the private medicinal cannabis company Elite Cannabinoids has received approval for growing a range of different cannabis strains at a secluded location 800km north of Perth.

High-level details for Elite Cannabinoids

Elite Cannabinoids recently gained its license for growing medicinal cannabis. The company will now be able to utilise 46 hectares of land in the production of cannabis. Additionally, the company expects to have an onsite pharmaceutical manufacturing facility. The combined enterprise should generate more than 60 jobs for the Gascoyne region.

In the words of Elite Cannabinoids CEO Sebastian Cox, "It will be one of the biggest medicinal cannabis facilities in the southern hemisphere."

Mr Cox further explained that the Gascoyne region was exceptional for the operation due to the high solar exposure, low biosecurity risks, and good water security.

The facility will be positioned to accommodate the demand of patients throughout Australia, with the added potential of expanding to international markets. As such, the company will begin with 253,000 cannabis plants in the first stage of operations. Production is anticipated to be in the works by 2023.

What does this mean for ASX cannabis shares?

Any correlation between Elite Cannabinoids approval and other companies is speculation. However, it does indicate there is still an existing demand for medical uses of cannabis. As mentioned in the ABC report, the Australian Institute of Health and Welfare estimates 600,000 Australians currently use it for medical purposes.

Australia legalised production and cultivation in 2016, which invoked pot stock mania in 2017. Since then, the sector has been rather quiet, with many shares falling back to reality. The big potential yet to be unlocked is legalisation for recreational use in Australia.

A few ASX-list players in the game include Ecofibre Ltd (ASX: EOF), Cann Group Ltd (ASX: CAN), Zelira Therapeutics Ltd (ASX: ZLD), and Althea Group Holdings Ltd (ASX: AGH).

Notably, the best performers in the last year have been Zelira and Althea. Shareholders would be happy with appreciations of 38% and 47% respectively. In contrast, the others have experienced falls of 40% or more. Internationally it is a very competitive landscape for these companies, but the market is still budding.

The post What will Elite Cannabinoids mean for ASX cannabis shares? appeared first on The Motley Fool Australia.

This is expected to result in stronger demand and open up new opportunities for ASX cannabis shares, particularly in the CBD space. The United States cannabis market also received a boost from the Biden election, with Democrats seen as far more proactive in legalising cannabis.

In Australia, the TGA down-scheduled low-dose CBD from being a prescription-only medicine to being a pharmacist-only medicine. This means Australian consumers will be able to buy CBD products over the counter at pharmacies. Demand for medicinal cannabis continues to grow in Australia.

Based on current growth rates, it is estimated more than 30,000 active patients are currently receiving medicinal cannabis products in Australia, up from just over 10,000 a year ago. So with this in mind, how did ASX cannabis shares perform in 1H FY21? 

How have these 3 ASX cannabis shares performed?

Althea Group Holdings Ltd (ASX: AGH)

Althea was founded in Melbourne in 2017 and holds licences to import, cultivate, produce and supply medicinal cannabis. Currently operating in Australia, the United Kingdom, Germany, and Canada, the company has plans to expand into emerging markets throughout Asia and Europe. 

Althea reported record revenue for the December quarter of $2.7 million, a 29% increase from the September quarter. Cash receipts were up 27% for the quarter and the number of healthcare providers that had prescribed Althea's products increased by 32%. These increases have been reflected in the Althea share price, which has increased 62% over the past six months. 

In the United Kingdom, Althea saw record revenues in December of $206,706 – a 90% month-on-month increase. The company's UK clinics continue to add new patients at a healthy rate with follow up appointments generating good repeat business.

In Canada, subsidiary Peak Processing Solutions entered an agreement with a Canadian listed beverage company to produce three cannabis-infused beverages. An initial order is expected to be delivered in Q1 2021 representing more than CAD$100,000 in revenue for Peak. A licence agreement was also entered to produce branded topical products. Peak has now signed contracts with total forecast revenues of CAD$4.65 million over the next 12 months. 

Althea finished 2020 with a healthy balance sheet thanks to a $6 million share placement. At 31 December 2021 cash on hand was $8.96 million. In January an additional $3.78 million was raised via an oversubscribed share purchase plan. Since the end of 1H FY21, Althea has also completed its first shipments of products to Germany and to UK-based distributor Grow Pharma. CEO Josh Fegan said, "Europe is fast becoming a global hub for medicinal cannabis….with operations in the UK and Germany, Althea is at the forefront of this next frontier."

Ecofibre Ltd (ASX: EOF) 

Ecofibre is a biotechnology company that produces and sells hemp-derived products in Australia and the US. The company produces Australian grown hemp food products through its Ananda Food brand and develops hemp-based textiles and composites through its Hemp Black business.

Ecofibre's Ananda Health brand produces nutraceutical products. The December half was a difficult one for this ASX cannabis share, with revenue falling 49% to $14.7 million. This was reflected in the Ecofibre share price, which has fallen 41% over the past six months. 

Nutraceuticals revenues fell during 1H FY21 with COVID-19 disruptions magnifying challenges in the highly competitive CBD industry. This was partially offset by revenue increases in the Ananda Food and Hemp Black brands. Ananda Food is now available in 1,250 Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) stores.

The food brand saw a 61% increase in revenues in 1H FY21 and is aiming to become the Australian hemp food processor of choice. Ecofibre is focused on reducing variable growing and manufacturing costs and utilising its expanded client base to work towards scale benefits. 

Ananda Health is a leading US pharmacy brand for CBD but saw major COVID-related disruption to its independent pharmacy channel during 1H FY21. Ananda Health is a premium-priced product, however, many pharmacies are carrying cheaper brands as well as product formats that Ananda Health does not manufacture.

Ecofibre repriced a number of products in November, reducing prices by 15% to 25%. New product formulations are also in the pipeline. A decline in in-store traffic has resulted in the development of an e-commerce channel that will allow pharmacies to sell Ananda CBD online. This is expected to launch in mid-2021. 

Cann Group Ltd (ASX: CAN)

Cann Group has established R&D and cultivation facilities in Australia and is pursuing a fully-integrated business model as a developer and supplier of cannabis and related products. In 1H FY21, Cann Group announced several important sales, with associated products expected to be shipped in Q3 FY21. This has been reflected in the Cann Group share price, which is up 57% over the past six months.

A shipment of 1,400 units of NOIDECS-branded medical cannabis products was made in December and will be used by Europe's first and largest national medical cannabis registry. Iuvo Therapeutics, a leading European medicinal cannabis importer and distributor, has placed an initial 19,000 units order for Cann Group product which is expected to ship in the current quarter, pending regulatory clearances. 

Locally, various products have been supplied to white label customers and compound pharmacists. According to Cann Group, customers are forecasting steady growth over the balance of FY21 as the Australian patient pool continues to grow.

Projected revenues remain heavily weighted to the second half of the financial year as Cann Group continues to work through regulatory clearances in Australia and overseas. The company recorded $99,000 in receipts from customers in the December quarter, but expects revenue to be boosted from orders anticipated to ship in the current quarter. 

Cann Group secured a $50 million bank debt facility from National Australia Bank Ltd (ASX: NAB) during the December quarter, which will be used to construct its cannabis production site near Mildura. Site activities are scheduled to begin late this month. The final cost to complete the facility, which will have an initial capacity of 12,500kg, is expected to be $65 million. This will be funded via the debt facility as well as cash on the balance sheet. 

What's next for ASX cannabis shares?

Australian consumers are eagerly awaiting the launch of the first over-the-counter CBD products in Australian pharmacies. ASX cannabis shares are in a race to get these products through the regulatory process and onto the market, knowing that there will be a first-mover advantage for those entering the space early.

As the market for cannabis products continues to grow both locally and offshore, ASX investors are eagerly watching the development of this industry. 

The post How did ASX cannabis shares perform in 1H FY21? appeared first on The Motley Fool Australia.

At one stage today, the hemp company's shares were down as much as 16% to $1.51.

The Ecofibre share price has since bounced back a touch but remains down 9% to $1.64 at the time of writing.

Why is the Ecofibre share price sinking?

Investors have been selling Ecofibre shares after the release of a very disappointing half year result.

For the six months ended 31 December, the company reported a 49% decline in revenue compared to the prior corresponding period to $14.7 million.

Management advised that this was driven by a significant reduction in nutraceutical segment revenues. This more than offset growth in its food and hemp black segments.

Unfortunately, it gets worse from here. The change in its revenue mix has impacted its margins negatively, leading to a reduction in its gross margin from 81% to 65%.

This could still reduce further from here. Management notes that its Ananda Health margins remained strong at 76% during the half but are expected to narrow following price changes in November.

This ultimately led to the company reporting a loss after tax of $5.5 million for the half. This compares to a $7.1 million profit in the prior corresponding period.

Outlook

Management advised that it will continue to invest in its core business and will not reduce its long term focus for short term results.

It expects its Hemp Black and Ananda Food segments to continue to see growth as they establish new clients and markets and achieve scale respectively.

Nevertheless, this won't be enough for a return to profit. Management is expecting the company to record a loss of around $1.5 million during the second half. This will result in a full year loss of approximately $7 million for FY 2021.

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

AMP Ltd (ASX: AMP)

The AMP share price is down 10% to $1.39 following the release of its full year results. The financial services company reported an underlying net profit after tax of $295 million for the 12 months ended 31 December. This is down 33% on the prior corresponding period. Management advised that it reflects the impacts of COVID-19 on its clients, its business, and the broader economy and financial markets.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price is down 13% to $1.57. Investors have been selling the hemp company's shares following the release of a very disappointing half year result. Ecofibre reported a 49% decline in revenue to $14.7 million and a sizeable $5.5 million loss after tax. The latter compares to a $7.1 million profit in the prior corresponding period.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has fallen 4% to $49.09. This follows the release of the fund manager's half year results this morning. For the six months ended 31 December, Magellan reported a 9% increase in its average funds under management (FUM) to $100.9 billion. However, due to a sharp decline in performance fees, the company posted a 2% decline adjusted net profit after tax to $213.1 million.

Vita Group Limited (ASX: VTG)

The Vita share price has crashed 27% lower to 82.5 cents. This follows news that Telstra Corporation Ltd (ASX: TLS) intends to transition to full ownership for all of its branded retail stores across Australia. At present, Vita operates 104 Telstra retail stores on behalf of the telco giant. This makes up the vast majority of its revenue. According to Vita, the agreement will end in June 2025.

The post Why AMP, Ecofibre, Magellan, & Vita shares are sinking today appeared first on The Motley Fool Australia.

Take Cann Group Ltd (ASX: CAN). CAN shares are getting smoked with a  2.34% loss at the time of writing to 62 cents a share. Althea Group Holdings Ltd (ASX: AGH) is fairing even worse, down 4.17% to 46 cents. Elixinol Global Ltd (ASX: EXL) is down 1.58% to 19 cents a share, and Ecofibre Ltd (ASX: EOF) is down 3.75% to $1.8 a share.

So why are ASX cannabis investors getting red eyes today?

ASX cannabis shares wake up with a hangover

It's worth noting that the entire ASX cannabis sector has had an excellent run over the last 2 months or so. Althea blazed almost 40% higher between 3 November and 3 December last year. Cann Group was up more than 100% over a similar period.

The catalyst for that move appears to be the victory of President Joe Biden in November's US presidential election. President Biden's Democratic Party is far more supportive of cannabis legalisation in the US. This contrasts the stance of former president Donald Trump's Republican Party. 

Although a significant and growing number of US states have legalised recreational cannabis, it remains illegal at the federal level. Expectations that the US government will move to lift federal restrictions have been… er, high, since Biden won office.

This month saw Democrats also win control of the US Senate which would have only added to these expectations. However, recent political machinations across the Pacific have dented hopes that this will amount to big legislative changes from Congress.

According to a recent reporting in The Washington Post, Democrats are now fearing that the Republican minority in the US Senate is gearing up to be as obstructionist as possible. That doesn't bode well for federal cannabis legalisation, given the presence of the infamous filibuster rules of the Senate.

So perhaps today's moves come down to investors looking for an excuse to take profits off the table after some incredible runs. High growth shares tend to sell off at a more enthusiastic pace than the broader market when the ASX is having a bad day.

The post Up in smoke! Why ASX cannabis shares are having a bleary day appeared first on The Motley Fool Australia.

Ecofibre's Ananda Health division is the number one provider of hemp-derived cannabidiol (CBD) for retail pharmacies in the United States. The business produces nutraceutical products, topical creams and ointments.

In existence for over 30 years, Medisca is a company that is focused on compounding pharmaceutical chemical products. The business offers personalised medicine, educational training and support to its partners prescribers, pharmacists, and pharmacist technicians. Medisca has a global footprint across 55 countries including Europe, the United States, Canada, and Australia. The company supplies compounds to more than 10,000 pharmacies world-wide.

In early trade, shares in the hemp products producer are up 3.88% to $1.88.

What's driving the Ecofibre share price?

In today's announcement, Ecofibre advised that it has entered an exclusive distribution agreement with Medisca to roll out its products.

Under the terms of the deal, Ananda will have access to the Medisca network in the United States. This will enable the company to supply Ananda Professional products to more than 5,000 pharmacies from February 1, 2021.

The contract will be valid for 3 years, with an additional 2-year extended option. A minimum sales target will be set 6 months after the contract start date, which must be met to continue to agreement.

Ananda will have exclusive distribution access to the United States, Canada, and Australia. However, Medisca is able to dispense the products to other parts of its extensive network on a non-exclusive basis.

Management commentary

Ananda Health CEO David Neu welcomed the new partnership, saying:

This partnership is one of the most important milestones in the professionalisation of the CBD industry. This is the first time a multinational distributor will be carrying ingestible hemp-derived CBD products.

Medisca global strategy and innovation SVP, Panagiota Danopoulos, added:

Medisca has been closely monitoring the CBD segment over the past several years and we have seen awareness and demand increase for compounding pharmacists across many geographies. To ensure that we can provide our pharmacists the best-in-class CBD product range we are very pleased to announce our exclusive distribution partnership with Ananda Health.

CBD is an exciting new category that still requires significant research and education to ensure it can help as many patients as possible. In conjunction with Ananda Health, we are very excited to be able to give our pharmacists access to the research, tools and training to improve patient outcomes.

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But the Australian medical marijuana industry is building momentum, continuing its growth trajectory in 2020 despite the impacts of COVID-19. According to Freshleaf analytics, the market tripled in size over 2020 with 30,000 active patients and $95 million in annual revenue. 

As the industry matures, competition is increasing. The number of available products has doubled in the last year to 150, putting pressure on prices. Prices have trended downward, and are now on par with more mature markets such as Canada. With price decreases, patient doses have increased, while average spend remains static. 

The industry got a boost in September when the TGA down-scheduled cannabidiol (CBD). This will allow Australian patients to purchase CBD products from a pharmacist, without needing a prescription.

But in New Zealand, voters were against a proposal for greater legalisation and decriminalisation of recreational cannabis floated in October, albeit by a narrow margin. This will be a blow to the industry which may have hoped for a potential widening in customer base.

In more positive news, the UN voted to remove cannabis and cannabis-related substances from Schedule IV of the international treaty governing narcotic drugs in early December. 

ASX cannabis shares saw mixed results over 2020. While some outperformed the broader market, others lagged. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 1% over the year.

Let's take a look at how 5 of the best ASX cannabis shares have performed in 2020.

1. Zelira Therapeutics

Small cap Zelira outperformed following its merger with US-based medicinal cannabis product developer Ilera in late 2019. The merger provided Zelira with direct access to the US market where revenue is being generated by the recently launched HOPE brand of cannabis formulations. Zelira entered into a licensing agreement in December to allow for distribution in the Washington DC market. 

Zelira has previously licenced HOPE in Pennsylvania and Louisiana and remains focused on expanding distribution across approved markets in the US. With its sights firmly set on becoming a profit generating pharma company, Zelira completed a $4.58 million capital raise earlier this year to fund the launch of multiple products into global markets. 

2. Althea Group 

Althea had a bumper year of share price growth compared to some pot sticks. The company is in the product distribution game, connecting patients and prescribers via its Althea Concierge app.

Active in Australia and the UK, and Althea recently started distributing to Germany. The company has also entered the manufacturing sector with its Peak Processing Solutions facility in Canada, which is capable of processing cannabis infused edibles and nutraceuticals. 

In December, Althea reported 11,841 Australian patients, up from 3688 a year earlier.  The aim is to have 30,000 patients by 2021. With 810 healthcare professionals prescribing Althea products in Australia, revenue is growing – it was up 48% month-on-month in November to $110,378. This has been reflected in an increase in the Althea share price over 2020. 

3. Cann Group

The Cann Group share price, on the other hand, is finishing 2020 largely flat. A July capital raise was conducted at a 50% discount to the (then) share price of 82 cents, causing the price to plummet. Key stakeholder Aurora Cannabis then sold its 11.84% shareholding in the company in October in off-market trades to undisclosed buyers. 

In more positive news, the company finally executed debt documentation in December. This will provide funding of $50 million to complete construction of the first stage of the company's production site near Mildura.

A staged approach to construction of the facility was adopted in response to the global oversupply of cannabis late last year. Cann Group is choosing to initially focus on meeting Australian domestic demand while reducing operating expenses as it seeks to transition to profitability. 

4. Ecofibre

Ecofibre saw its share price decline over the full year as investors shied away from the hemp products producer. The company listed on the ASX in March 2019 at $1 per share and was trading above $3 in late 2019.

The share price has since, however, retraced its steps. Ecofibre's US based Ananda Health business has been significantly impacted by COVID-19, lawlessness in key US markets, and industry changes in the US CBD market. Revenue for the first quarter of 2021 was significantly down on the prior corresponding period. Ecofibre has advised the best it can expect is a breakeven profit result in FY21. 

5. Auscann Group

The Auscann share price spent most of 2020 in the mid teens but spiked in early December following the UN's vote on cannabis. Auscann's CEO commented, "the change in scheduling has the potential to vitalise research into medicinal cannabis, removing some of the deterrents to activity in this space."

Nonetheless the share price remains well down from all time highs. The company launched its hard shell capsules in 2020 and says sales have initially been slower than hoped but are building. From a low base, sales are currently increasing 50% month on month. 

The Australian medical marijuana industry has undergone a reckoning with reality over the last couple of years. This has resulted in more realistic valuations than in the early, exuberant days post legalisation.

As the sector moves toward maturity, 2021 could mark a turning point in discovering what a healthy medical marijuana industry looks like in Australia.

The post 5 top ASX cannabis shares in 2020 appeared first on The Motley Fool Australia.

In significant industry news, the Therapeutic Goods Administration (TGA) made an interim decision to down-schedule CBD. The amendment would allow Australian patients to purchase CBD products upon consultation with a pharmacist, without the need for a prescription, from 1 June 2021. If the interim decision becomes final, this will provide another potential source of revenue for ASX cannabis shares.

With that in mind, let's take a look at how ASX cannabis shares performed in the last quarter. 

Althea Group Holdings Ltd (ASX: AGH) 

Althea continues to go from strength to strength, launching online sales in Australia in July. This fast-tracked response to COVID-19 drove record revenue and patient numbers for the month. Total patients passed 8,000 with 740 patients prescribed Althea products for the first time. Unaudited revenue of $692,091 was recorded. A total of 628 Australian healthcare professionals had prescribed Althea products as at 31 July 2020. 

Althea's online platform, Althea Concierge, has been updated to cater for online sales. Used in conjunction with telemedicine, Althea Concierge allows doctors to prescribe Althea medicinal cannabis products which are delivered directly to the patient's door. This eliminates the need for multiple visits to the doctor and pharmacy while complying with regulatory requirements. 

Althea engaged with the TGA throughout the consultation process on the down-scheduling of CBD. CEO Josh Fegan said:

We see it as one of the biggest developments in our industry to date. The interim decision reflects the significant shift in community and government attitudes towards medicinal cannabis.

Althea launched a CBD preparation last year, so is well positioned to take advantage of this market opportunity. 

Althea subsidiary Peak Processing was granted a Canadian cannabis licence last month, and commenced operations immediately. Peak manufactures Cannabis 2.0 products on behalf of third parties such as cannabis-infused edibles, beverages, concentrates, and topicals. The plant will also supply medicinal products to Althea's pharmaceutical operations, greatly reducing the cost of goods sold. 

Cann Group Limited (ASX: CAN) 

Cann Group saw major shareholder Aurora Cannabis Inc exit its position this quarter. The Canadian cannabis producer sold its 11.84% shareholding in Cann Group despite listing Australia as one of its "primary market opportunities" as recently as February. Aurora did not participate in Cann Group's July capital raising, where the company raised $24.3 million to provide working capital. The Cann Group share price tanked in the aftermath of the raising, losing some 50% of its value.

Cann Group says Aurora's exit has no impact on its business plans. It remains focused on developing a supply base with B2B customers and expanding manufacturing capacity. The company says it has secured multiple new offtake and supply agreements which will support short term revenues and de-risk expansion plans. Expansion of the company's Mildura facility has been central to Cann Group's growth strategy, but has hit a number of snags. 

An oversupply in the cannabis market late last year forced Cann Group to take a staged approach to construction of the Mildura facility. COVID-19 then slowed progress of potential funding options as well as the practical timing of construction. The company remains in discussions to secure a debt facility to fund the first stage of the expansion. More than $50 million has been spent on the project, which is intended to increase production capacity to 12,500 kilos annually. 

In FY21, Cann Group is forecasting revenues of $15 million, underpinned by existing supply contracts. New commercial supply agreements have recently been secured to supply product to the UK, Germany, and other European countries. Germany is Europe's largest medicinal cannabis market, with 2019 sales exceeding all other European markets combined. Cann Group also has agreements in place to supply medicinal cannabis to pharmacies and hospitals in Australia through a distribution arrangement with Symbion Health.

Ecofibre Ltd (ASX: EOF) 

Ecofibre completed its acquisition of TexInnovate in the September quarter. The acquisition is aimed at accelerating the transition of Ecofibre's Hemp Black business from R&D to commercialisation. The Hemp Black business focuses on developing textiles and materials from hemp, which has natural antimicrobial and conductive properties. TexInnovate is a portfolio of 5 businesses with expertise across a range of high-performance textile disciplines. 

The Hemp Black business pivoted rapidly at the onset of COVID-19, re-prioritising efforts from athleisure wear to PPE in response to global demand. By the end of FY20, Hemp Black had delivered $2.4 million in PPE sales. Ecofibre is aiming to embed Hemp Black's technology across a range of industries, including high-performance apparel, personal protection, military, healthcare, and travel. 

Ecofibre's Ananda Health business, which sells CBD products in US pharmacies, has been performing strongly, increasing profit before tax by 63% in FY20 to $20.8 million. The Ananda Food business, which sells hemp food products and nutraceuticals, has recorded steady growth, but profits have been slower than expected. Ecofibre has not provided FY21 revenue or profit guidance, but says it will consider paying a dividend for FY21. This is based on the company's cash position, confidence in delivering profitable growth in Ananda Health, and a pathway to profitability for Hemp Black and Ananda Food. 

The post How did ASX cannabis shares perform last quarter?  appeared first on The Motley Fool Australia.

What's pushing the Ecofibre share price lower?

The Ecofibre share price is in freefall today after the company reported disappointing results marked by severe impacts of COVID-19 for the quarter ending 30 September.

The company said that cash flow and revenue are on track, however a loss is expected to be incurred in H1 FY21. Ecofibre advised the setback is due to the pandemic causing political and social disruption to retail in the United States.

Revenue for the first three months of FY21 came in at $7.1 million, down 51% on the prior corresponding period. As trading conditions remain difficult, the company is forecasting to break even in FY21.

On a positive note, Ecofibre said that it is starting to see early signs of recovery in its US independent pharmacy segment. The company is further developing its relationship with customers through its Ananda Health business, supporting a return of normal operations. Engagement and education to its customers are seen as key pillars to drive future growth.

The company recorded cash on hand of $15.6 million, as compared to $18.3 million at the end of June. Limited further investment is expected in FY21 to preserve capital until the business can see improvements in the economic climate.

New developments

At the end of the quarter, shipping commenced of Ecofibre's batch of Balans Labs products to CVS Health Corp (NYSE: CVS) stores. The range of topical hemp products will be distributed to over 4,000 retail locations across the United States. Additional expansion plans are underway to provide more items.

Completed acquisition

The company stated that the acquisition of TexInnovate in August 2020 has been completed and is progressing well. TexInnovate, now renamed to Hemp Black, produced revenues of $2.6 million for the quarter. The sales were split between face mask sales and revenues from the original TexInnovate business.

Hemp Black said it has customers in segments including medical yarns, high performance polymers, outdoor turf, furniture applications and personal protective equipment (PPE). The company is focused on supplying a target segment that will exist over the medium term.

Management commentary

Ecofibre CEO, Eric Wang, commented on the poor performance encountered for the quarter. He said:

Trading conditions remain difficult in the US CBD market and the demand for PPE has reduced. As discussed last quarter, we are reshaping our business priorities to adjust for changes in purchasing behaviours with our distributors and independent pharmacies.

We are working to ensure we retain and grow our leadership position in the US retail pharmacy channel. There is strong confidence in the long-term future of hemp-derived CBD in this channel as it will be the preferred channel for patients with health conditions that are advised by pharmacists and medical practitioners.

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