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.

Since then, the effects have worn off and this side of the market has been getting very little attention.

That was until today when two ASX cannabis shares made big moves in opposite directions. Let's see what is causing the buying and selling.

Cann Group Ltd (ASX: CAN)

The Cann Group share price is up 7% to 4.8 cents on Wednesday after being given a boost from banking giant National Australia Bank Ltd (ASX: NAB).

According to the release, NAB has agreed to defer the quarterly interest payment and facility fee for its construction loan to a future date to be mutually agreed. The interest payment and facility fee total approximately $0.9 million and was due on 22 November.

In addition, the ASX cannabis share revealed that the bank is considering the deferment of the subsequent two quarterly interest and facility fee payments. Furthermore, NAB has confirmed its intention is not to call upon any of the outstanding loan balances during the period through to 29 September 2025.

Management notes that the deferment of up to three quarters of interest payments allows the company to accelerate its trajectory towards critical milestones of positive EBITDA, then positive cash flow.

Cann Group's CEO, Jenni Pilcher, commented:

NAB's ongoing support has been instrumental in positioning Cann for long-term success. This partnership underscores the shared commitment to the company's growth and operational excellence.

Little Green Pharma Ltd (ASX: LGP)

The Little Green Pharma share price is down over 7% to 12.5 cents.

This follows the release of the vertically integrated medicinal cannabis and psychedelics company's half year report.

For the six months, the ASX cannabis share reported a solid 36.8% increase in revenue to $17.5 million. This was driven by sales growth in both domestic and international markets and across most product categories.

However, this top line growth didn't flow through to its bottom line. Instead, its losses widened by 58.7% to approximately $3.5 million.

Though, it is worth noting that its adjusted EBITDA for the half-year was $266,000, which is up from a negative $511,000 in the prior comparative period. This was driven primarily by sales growth and early signs of economies of scale.

Following today's decline, Little Green Pharma's shares are now down over 20% since the start of the year.

The post 2 ASX cannabis shares with big news today 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.

During the Tuesday lunch hour, the All Ordinaries Index (ASX: XAO) is up 0.5%.

But cannabis stocks Little Green Pharma Ltd (ASX: LGP) and Botanix Pharmaceuticals Ltd (ASX: BOT) remain mired in the red.

Both ASX cannabis stocks released quarterly updates today.

Here's what they reported.

Little Green Pharma share price falters amid European sales slump

Shares in vertically integrated medicinal cannabis business Little Green Pharma are down 3.1% today, trading for 15.5 cents apiece.

The ASX cannabis stock reported quarterly revenue of $6.2 million, in line with the prior quarter.

Cash receipts of $6.6 million were also consistent with the prior quarter. The company noted it also had a further $1.8 million in trade receivables at the end of the quarter.

While revenue in Australia increased 5% quarter on quarter, the ASX cannabis stock could be facing some pressure following a 33% decline in its sales into Europe. However, the company said it expects strong demand out of France, citing an additional 7,000 units of oil sent during the quarter.

As for the balance sheet, Little Green Pharma had cash in bank of $6.2 million and long-term debt of $3.6 million as at 30 September.

Which brings us to…

ASX cannabis stock slips amid ongoing FDA approval process

Shares in clinical-stage cannabinoid therapeutics company Botanix Pharmaceuticals are also lagging the benchmark today, down 1.8%, following its quarterly update.

On September 20, the Botanix share price was up an eye-popping 300% year to date amid hopes of pending United States FDA approval for its Sofpironium Bromide product, intended to treat excessive sweating. But due to issues with its packaging instructions, that approval was denied. Shares have slumped 32% since then, leaving the stock up 174% in 2023.

Botanix is resubmitting for approval. The company said its submission of the final required component is on target for the first quarter of 2024, with approval targeted by mid-2024.

But investors look to be holding off on hitting the buy button on this ASX cannabis stock until there's more certainty from the FDA.

The quarter gone by also saw Botanix raise $12.5 million via an institutional placement to new and existing shareholders.

On the balance sheet, the company ended the quarter with cash holdings of $6.8 million. Management also expects around $2 million from the R&D tax return in November.

The post Why are these 2 ASX cannabis stocks sputtering today? 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.

That's despite the fact that the cannabis stocks operate in a country where medicinal marijuana is technically legal. That's enabled them to provide valuable health services to many thousands of Australians.

In Victoria alone, around 65,000 people were reported to have medicinal cannabis prescriptions in March this year.

But that hasn't helped lift the fortunes of ASX cannabis shares like Incannex Healthcare Ltd (ASX: IHL), Little Green Pharma Ltd (ASX: LGP), and Cann Group Ltd (ASX: CAN).

Here's how these three ASX cannabis shares have performed over the past 12 months:

• Little Green Pharma shares are down 37%
• Cann Group shares are down 48%
• Incannex Healthcare shares are down 53%

Now these are obviously not the kind of returns any investor wants to see.

But the longer-term outlook for ASX cannabis shares may have just gotten a bit brighter.

Could this help boost ASX cannabis shares?

Medicinal marijuana was legalised in Australia in 2016.

But, with the exception of the ACT, recreational use remains verboten. That's seen police pursue more than 700,000 pot-related offences since 2010 across the nation.

Now, in a move that could boost ASX cannabis shares longer-term, the Legalise Cannabis party has introduced bills to legalise marijuana for personal use as well as medical reasons.

The bills were tabled yesterday to three state parliaments: Western Australia, Victoria, and New South Wales. The Legalise Cannabis party noted this is the first time the same bill has been simultaneously introduced in three states.

It will, however, be some time before ASX cannabis shares might directly benefit from the proposed bills, all called the Regulation of Personal Adult Use of Cannabis Bill 2023.

While the move has broad support from the Liberal Democrats and Greens, it will need some support from the major parties to pass.

Victorian premier Daniel Andrews has already flagged his opposition. "My position is the law as it stands now," he said.

But then laws can and do change all of the time.

What changes are being proposed?

In a nutshell, the new bill would allow adults (18+) to possess modest quantities of marijuana and grow up to six plants at their homes. This is largely in line with the new laws that came into effect in the ACT in 2020.

In itself, this is unlikely to have any short-term material impact on ASX cannabis shares, as it won't directly open up any larger market opportunities.

Commenting on the proposed bill, New South Wales upper house MP Jeremy Buckingham said (quoted by ABC News), "This is a historic move by the Legalise Cannabis Party across Australia to bring a coordinated reform for cannabis legalisation."

Victorian MP David Ettershank added:

The majority of Victorians support the regulation of cannabis, and a huge number of Victorians … regularly consume cannabis. There's a lot of politicians, again from both sides of the house, who use cannabis…

Cannabis needs to be taken out of the world of crime and regulated intelligently.

Now, here's where ASX cannabis shares could potentially receive some major tailwinds over the longer term.

According to police estimates, Australians spend some $8 billion a year on marijuana. And all of that goes straight into the black market.

The next planned step of the legalisation process was highlighted by Legalise Cannabis Party upper house member Brian Walker, a former GP.

Walker said his party is aiming for a regulated, legal cannabis market.

"We want to move further and actually take it to the stage of actually being taxable so we can get some revenue as a government for that," he said.

Not only would the government be dipping in for its tax take if this succeeds, but ASX cannabis shares would find a much larger market for their products.

The post Why ASX cannabis shares just jumped back into the spotlight appeared first on The Motley Fool Australia.

The ASX All Ords cannabis share came out of a trading halt this morning after the company announced a successful $5 million institutional placement.

Let's look into the details.

Little Green Pharma share price soaring

In a statement, Little Green Pharma said it has secured "firm commitments" for a $5 million placement.

These commitments are from new and existing institutional and sophisticated investors.

Just over 27 million new shares will be issued at a price of 18 cents per share.

The funds will be used to repay a loan note, which "refreshes the company's balance sheet for future growth".

Little Green Pharm hopes to reach break-even point soon by executing current and proposed supply agreements in Europe and driving more sales in Australia.

The company is also working on reducing operational costs.

Little Green Pharma CEO Fleta Solomon said:

We are confident the business's current momentum will allow it to continue growing sales and leveraging domestic and international medicinal cannabis market opportunities.

The new Little Green Pharma shares will start trading on 31 March.

Other news nudging this ASX cannabis share higher

We first heard about the trading halt and proposed capital raise on Wednesday.

That same day Little Green Pharma announced a "strategic alliance" between its psychedelics subsidiary, Reset Mind Sciences, and Health Insurance Fund of Australia (HIF).

Reset and HIF plan to build a proof-of-concept mental health treatment facility.

The facility will provide psychedelics and psychotherapy to eligible patients.

Reset and HIF will conduct a study to help HIF decide whether to provide member coverage for the treatment.

This follows the Therapeutic Goods Administration (TGA) down-classifying two psychedelics to enable their use in treating mental illness.

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

Only a psychiatrist can prescribe the psychedelics. The new rules come into effect on 1 July.

In a statement, Little Green Pharma said the TGA's 'down-scheduling' of MDMA and psilocybin means Australia "will become the first market in the world to recognise psychedelics as medicines … ".

The news caused the Little Green Pharma share price to skyrocket by 46%, as we covered on the day.

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

He elaborated:

There is a significant body of research emerging in Australia and globally for the use of psychedelics to treat mental health conditions and this decision allows the use of these drugs for the mental health conditions that have demonstrated the most potential in the research.

Last month, Little Green Pharma received Human Research Ethics Committee (HREC) approval for a clinical trial in the use of psilocybin for patients with treatment-resistant depression.

The post Little Green Pharma share price shoots 13% higher after capital raise appeared first on The Motley Fool Australia.

In afternoon trade, the ASX cannabis share is up 46% to 27 cents.

Why is this ASX cannabis share on fire?

Investors have been bidding the Little Green Pharma share price higher today after the company's psychedelics focused subsidiary, Reset Mind Sciences, was given a big boost from regulators.

According to the release, the Therapeutic Goods Administration (TGA) has decided to change the classification of psilocybin and MDMA to allow prescribing by authorised psychiatrists.

This means that Australia will become the first market in the world to recognise psychedelics as medicines and paves the way for the use of psilocybin for the treatment of treatment resistant depression and MDMA for PTSD outside of a clinical trial environment from 1 July 2023.

Management believes this uniquely positions Reset Mind Sciences given both its Schedule 9 licence and its impending clinical trial. These developments now allow the company to accelerate and implement its commercialisation plans far earlier than expected.

'Groundbreaking'

Reset Mind Sciences' CEO, Shaun Duffy, was very pleased with the news. He commented:

The announcement by the TGA is truly groundbreaking in the field of psychedelics and I welcome their decision. There is a significant body of research emerging in Australia and globally for the use of psychedelics to treat mental health conditions and this decision allows the use of these drugs for the mental health conditions that have demonstrated the most potential in the research.

The post Why did this ASX cannabis share just rocket 46%? appeared first on The Motley Fool Australia.

It wasn't all too long ago that most companies involved in the cultivation and sale of medicinal or recreational marijuana were booming. But as the pace of newly opening legal markets slowed, so too did investor enthusiasm for the sector.

So why are these two ASX cannabis shares booming all of a sudden?

Why are these ASX cannabis shares rocketing?

The All Ordinaries Index (ASX: XAO) is down 0.7% in late morning trade, following a retrace in US markets overnight.

But the Cann Group Ltd (ASX: CAN) share price is heading decidedly in the other direction, up 7.7%.

And fellow ASX cannabis share Little Green Pharma Ltd (ASX: LGP) is also up 7.7%.

The big gains come following some positive announcements from both companies earlier this week.

First, here's what Cann Group reported late afternoon on Tuesday.

Cann Group's license extended

Investors have been bidding up the ASX cannabis share after the company announced its GMP manufacturing licence for its Mildura facility was extended to cover additional manufacturing capabilities.

The Therapeutic Goods Administration (TGA) issued the initial license on 30 June.

Under the extension, Cann Group is now allowed to manufacture and release finished dried flower products from its Mildura facility for patient use.

Commenting on the development, Cann Group's CEO, Peter Crock, said:

This licence extension allows Cann to now manufacture patient-ready dried flower products at our Mildura facility, allowing us to quickly respond to market demands.

The Cann Group share price is up 9.6% since the announcement.

Little Green Pharma's new supply agreement

Also on Tuesday, ASX cannabis share Little Green Pharma reported on a new agreement inked by its wholly owned subsidiary, Little Green Pharma Denmark ApS.

The agreement will see Little Green Pharma supply German medicinal cannabis distributor Cannamedical Pharma GmbH with a high-THC strain product. The deal for the delivery of bulk medicinal cannabis from Denmark to Germany has a potential value of $4.5 million over two years.

This represents Little Green Pharma's fourth contract to supply medicinal cannabis to Germany.

The ASX cannabis share has gained 19.2% since the announcement.

The post Why are these 2 ASX cannabis shares booming all of a sudden? appeared first on The Motley Fool Australia.

At the time of writing, the medicinal cannabis' shares are up 8.33% to 32.5 cents.

What did Little Green Pharma announce?

In the morning, Little Green Pharma provided investors with a board appointment which has led its shares to push higher.

According to its release, the company announced the inclusion of experienced pharmaceutical regulatory executive, Beatriz Vicén Banzo on its board.

Serving as a non-executive director effective today, Banzo brings a wealth of experience to the role. Her decorated career spans large multinational companies with a focus on regulatory affairs for European pharmaceutical enterprises.

Banzo sat on the board as director of public affairs and quality for global pharmaceutical leader, Bayer in Spain.

In her position, Banzo was responsible for a number of important business functions. This included quality assurance, regulatory affairs, pricing and market access across the business's divisions.

Prior to this, Banzo held the title of head of regulatory affairs and permanent executive committee guest at Novartis Pharmaceutical for almost 10 years.

Banzo has a degree in pharmacy as well as an MBA from the University of Barcelona.

She also possesses a masters in European regulatory procedures as well as an additional MBA from ESADE business school.

Notably, the appointment coincides with Little Green Pharma's expansion of its operations throughout Europe.

The Spanish market represents an emerging opportunity for the company given the country's large population of 50 million people.

Little Green Pharma is seeking a stronger foothold in the European market as interest increases in the cannabis medicines industry.

Management commentary

Little Green Pharma CEO, Fleta Solomon said:

I am very excited to welcome Beatriz to the leadership team at Little Green Pharma. Her experience in international pharmaceutical management and regulation is unmatched and will no doubt be a major asset to the Company as we continue to expand.

In particular, she has detailed knowledge of the development requirements for products in European and international markets, as well as experience executing strategies to build leadership positions in the pharmaceutical industry, highlighted by her time at multinational company Bayer.

Little Green Pharma share price snapshot

Over the last 12 months, Little Green Pharma shares have tumbled by more than 62%.

The company's share price reached a multi-year low of 21.5 cents last month, before recovering some lost ground.

Based on today's price, Little Green Pharma has a market capitalisation of around $72.08 million.

The post Little Pharma shares lift 8% amid appointment of 'highly regarded' director appeared first on The Motley Fool Australia.

The vertically integrated medicinal cannabis company's shares jumped 23% to 40 cents.

Why did the Little Green Pharma share price rocket higher?

Investors were bidding the Little Green Pharma share price today after the cannabis company released a positive update.

According to the release, the company has entered into a two-and-a-half year take-or-pay contract with new distribution partner, Four 20 Pharma, for the exclusive supply of the high-THC (25% THC) SMS strain into Germany.

The release notes that the agreement represents a minimum take-or-payment commitment of at least $7.5 million over 30 months. It also includes the payment of a development fee to help defray strain development costs.

Management isn't resting on its laurels, though. The company revealed that it now intends to seek similar agreements for other new strains, as well as roll out the SMS strain into other jurisdictions.

Management commentary

Little Green Pharma's Chief Executive Officer, Fleta Solomon, was pleased with the agreement. Solomon commented:

We are very excited by our new SMS strain as well as the opportunity to be partnering with Four 20 Pharma, one of the largest medicinal cannabis operators in Germany and with a highly successful track record of supplying its 420 Natural brand cannabis products into the German market.

The Agreement represents another significant milestone in LGP's continued growth of its Danish Facility, as well as an exciting development in LGP's supply processes that promises to dramatically shorten LGP's supply timelines for future key strains.

We look forward to working closely with Four 20 Pharma to bring this highly-prospective new strain to market as quickly as possible.

Despite today's strong gain, the Little Green Pharma share price has still lost a third of its value in 2022.

The post Why did the Little Green Pharma share price flame 23% higher today? 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.

• Little Green Pharma made a key announcement regarding an exclusive distribution agreement in Greece.
• It is an exclusive four-year agreement to supply and distribute LGP-branded products.
• Both parties will share product revenues on a 50:50 basis.
• The Little Green Pharma share price has grown 9% in the last 12 months.

The Little Green Pharma Ltd (ASX: LGP) share price shot out of the gate today and is now 0.84% higher at 60 cents, having earlier been up 3%.

Investors are responding positively after Little Green Pharma made a key announcement regarding an exclusive distribution agreement in Greece.

The announcement builds on another distribution agreement the medicinal cannabis company signed in Germany just two days ago. Let's take a closer look.

What's boosting the Little Green Pharma share price?

The Little Green Pharma share price is on the rise after the company announced it has signed an exclusive four-year agreement with Greek company PharmaServe for the distribution of LGP-branded oil medicines and cannabis flowers in Greece.

The company says PharmaServe has operated as a distributor of pharmaceutical and healthcare products in Greece since 1984.

"With a population of around 11 million, there are no registered medicinal cannabis products in [the Greece] market," the company says.

"LGP anticipates PharmaServe will be one of the first distributors to apply for a medicinal cannabis Marketing Authorisation in Greece, giving LGP a significant foothold in a new, currently under-served market in the EU."

It is also the first agreement to utilise the company's Danish facility outside Australia and Denmark.

Under the agreement, LGP-branded cannabis medicines will be supplied and distributed in Greece for a minimum 2-year period.

After 2 years, PharmaServe "may also require LGP to supply co-branded cannabis medicines in addition to the LGP-branded medicines for prices to be agreed".

The agreement is also conditional upon PharmaServe achieving minimum revenues of 600,000 euros per year.

Both parties agree to exclusively work with each other. PharmaServe will avail from promoting any other cannabis medicine in Greece while Little Green Pharma will exclusively supply its products over the contract length.

The financial terms of the deal benefit both parties fairly equally. For instance, Little Green Pharma will supply its medicines from its Australian and Danish facilities, and will share product revenues on a 50:50 basis.

Both arrangements are subject to LGP receiving certain minimum prices per unit and subject to deposit prepayment terms.

Management commentary

Speaking on the announcement driving the Little Green Pharma share price, chief executive officer Fleta Solomon said:

The agreement represents the continued fulfilment of LGP's strategic imperative to grow significant market shares in key markets across the EU. With the addition of Greece to the LGP distribution footprint, LGP aims to capture a market that is currently significantly underserved and overlooked by other medicinal cannabis producers.

With a population of [approximately] 11 million and no currently registered cannabis medicines, the market for medicinal cannabis in Greece represents another attractive opportunity for LGP's broader international growth ambitions.

The Little Green Pharma share price (blue) has grown around 9% in the last 12 months and is trading flat this year to date at the time of writing.

As the graph shows, it is now at a crossroads with the benchmark S&P/ASX 200 Index (ASX: XJO) after wiping substantial value from its previous highs.

The post Why is the Little Green Pharma (ASX:LGP) share price in the green today? appeared first on The Motley Fool Australia.

Below we take a look at the ASX cannabis share's quarterly results that look to be driving investor interest.

What did the quarterly update reveal?

Little Green Pharma's share price is soaring after the company reported "strong revenue growth" and a record month of sales for September.

Unaudited revenue came in at $3.18 million while the company reported an all-time monthly high of $1.39 million in sales for September.

As at 30 September, Little Green Pharma had a cash position of $29.1 million. It reported that, "Cash receipts lagged sales as debtors missed the cut-off for the month, with over $900,000 being received in the first few days of the current quarter."

Growth and acquisitions

The Little Green Pharma share price may also be getting a boost from the strong growth in its Australian market. The company reported 4,580 new patients, a 39% quarter-on-quarter increase. And 110 new prescribers represented an increase of 46% from new prescribers coming on board during the previous quarter.

During the quarter, the company also completed its $6 million acquisition of "the properties underlying its cultivation and manufacturing facilities in Western Australia, as well as the two adjoining properties".

Little Green Pharma said it was continuing to focus on European commercial sales. In line with that, the company has started integration of its Danish facility.

Atop its cannabis offering, the company also is progressing with its psychedelics business. In September, the Western Australian State Health department revised Little Green Pharma's Schedule 9 licence "to permit the supply of psilocybin".

Little Green Pharma share price snapshot

Over the past 12 months, the Little Green Pharma share price has rocketed 105.8%. That compares to a gain of 24% posted by the All Ordinaries Index (ASX: XAO) over that same time.

Little Green Pharma's shares have been trading relatively flat over the past month.

The post Little Green Pharma (ASX:LGP) share price leaps 7% on revenue growth appeared first on The Motley Fool Australia.

The benchmark S&P/ASX 200 Index (ASX: XJO) has slumped almost 4.5% into the red over the last month, back to its May 2021 levels.

Leading the way is the S&P/ASX 200 Health Care Index (XHJ), which has slipped around 6% lower in the last month.

Let's zoom out and look at how ASX healthcare shares have performed in Q1 FY22.

How did ASX healthcare shares go in Q1 FY22?

As a whole, ASX healthcare shares were in the green for the first quarter, in a robust performance on the local exchanges.

The ASX 200 Health Care index has climbed 1.3% this past quarter, and now leads the benchmark index over this time.

Broad weakness across the ASX has stemmed a 3-month decline for the major indices, with the S&P/ASX 200 handing back just over 1% in Q1.

So as it stands, taking a broad view, ASX healthcare shares outperformed the market in the first quarter of FY22.

Impressive gains are observed on the individual share level for Q1 in this sub-group.

For instance immunotherapy company Imugene Limited's (ASX: IMU) share price has climbed from 35 cents to 47.5 cents in the last quarter, a 36% jump.

Not to mention, the Imugene share price came off lows of 28 cents on 9 August to reach its all-time high in Q1 FY22.

Medicinal cannabis company Incannex Healthcare Ltd (ASX: IHL) was also a winner, with shareholders clipping the ticket on a 35% bump in its share price last quarter.

Ramsay Health Care Limited (ASX: RHC) shares were also climbers in Q1, delivering an outsized return of 11% after a healthy $6.80 per share gain from July to 30 September.

However, it wasn't all rainbows for the sector, with some names coming in well behind the benchmarks.

After some excitement earlier in the year, the Little Green Pharma Ltd (ASX: LGP) share price made a 26% march down south from highs of 93 cents.

In and around the small to large cap names, there are instances of both underperformance and outsized returns.

Foolish takeaway

In the last month, the ASX healthcare indices have led the market's losses. Within this group, some shares are outperforming while others are lagging behind their key benchmarks.

Nonetheless, as a whole, ASX healthcare shares appear to have outperformed the broad index in the last quarter.

The post How did ASX healthcare shares perform in the FY22 first quarter? appeared first on The Motley Fool Australia.

The medicinal cannabis producer and distributor released its annual report for financial year 2021 today. Within it, the company's bosses looked back on the year that brought its maiden profit and first expansion into Europe.

At the time of writing, the Little Green Pharma share price is 69.5 cents, 1.46% higher than its previous close.

Let's take a closer look at what Little Green Pharma's leaders had to say about its financial year 2021 and its future.

Financial year 2021 for Little Green Pharma

The Little Green Pharma share price is in the green today amid the release of its annual report.

The company's managing director and chair both provided comments within the report, each detailing a successful financial year.

Over financial year 2021, Little Green Pharma acquired a medicinal cannabis cultivation and manufacturing facility in Denmark and grew its relationship with its German distribution partner, Demecan.

It has also positioned itself to break into the French, Danish, and Polish markets.

Additionally, Solomon noted the company's products saw record growth in demand in financial year 2021, with 10,600 new patients.

Little Green Pharma's managing director, Fleta Solomon, said:

To know we could batten down the hatches, ride out the pandemic, and grow organically was a testament to our strong business model and team.

Little Green Pharma's chair, Michael Lynch-Bell, noted the acquisition of the Denmark facility represented a "step change" for the company. Particularly, as the placement it underwent to purchase the facility received strong institutional support.

The Little Green Pharma share price gained 10% on news of the acquisition and placement.

Now, the company is working on an observational study conducted by the University of Sydney. The findings of the study are expected to be peer-reviewed and published in 2022.

Additionally, a clinical investigation into its LGP Classic 10:10 medicinal cannabis oil has found it can safely treat chronic refractory pain. Little Green Pharma is now progressing another clinical trial into the efficacy of medicinal cannabis in the treatment of symptoms of fibromyalgia.

Finally, the company's ARISE project is moving through the first of 3 phases.

Little Green Pharma share price snapshot

Today's boost included, the Little Green Pharma share price has gained 24% since the start of 2021. It is also 148% higher than it was this time last year.

The post Little Green Pharma (ASX:LGP) share price lifts as bosses reflect on a big year appeared first on The Motley Fool Australia.

On 6 September, the medical cannabis producer announced its first Danish shipment and two new appointments. Then, on 7 September, it announced it will foray into psychedelic medicines.

Unfortunately, none of Little Green Pharma's gains from the announcements have managed to stick. In fact, the company's stock has returned all its September gains and then some.

Right now, the Little Green Pharma share price is 70 cents, flat with its previous close, and 6.67% lower than its first close of this month.

Let's take a closer look at the latest news from the company.

The month so far for Little Green Pharma

The Little Green Pharma share price is having a tough slog this month despite the market reacting positively to 2 announcements.

First off, Little Green Pharma announced the first shipment of cannabis flower medicine from its recently acquired Danish facility had arrived in Australia. Additionally, the company shared news of 2 key appointments.

The cannabis flower medicine is named Billy Buttons THC 16 and has a THC content of 16%. The company is selling Billy Buttons to the Australian market in 15-gram packs.  

Little Green Pharma expects to receive another 2 shipments from its facility in Denmark before the end of October.

Little Green Pharma also announced it had appointed the former managing director of its Danish facility, Morten Snede, as its new Chief Financial Officer. It also brought the former managing director of Tasmanian Botanics, Tony Roberts, on board as its new general manager.

The Little Green Pharma share price gained 4% on the back of the day's news.

The following day, the company announced it was to venture into supplying psychedelic medicines.

Western Australia's Department of Health granted Little Green Pharma a licence to supply psilocybin. As a result, the company formed a subsidiary to conduct its psychedelic business.

Psilocybin can be used to treat mental illness.

Following the announcement, the Little Green Pharma share price gained 6.4%.

Unfortunately, its gains didn't hold. Since then, the company's share price has fallen 14.6% for no apparent reason.

Little Green Pharma share price snapshot

Despite its recent dip, Little Green Pharma's stock has been performing well on the ASX.

It is currently 25% higher than it was at the start of 2021. It has also gained 150% since this time last year.

The post The Little Green Pharma (ASX:LGP) share price has fallen 7% this month appeared first on The Motley Fool Australia.

So, what's going wrong for ASX cannabis shares lately and how have they performed?

What's going wrong for ASX cannabis shares lately?

Interestingly, it's not as though shares in these Aussie companies are performing poorly over the longer term. Little Green Pharma shares are up 157% in the past 12 months while the Creso Pharma share price has climbed 200% higher in the same period.

However, the past week or so has seen a correction of sorts. Mixed financial results in the August reporting season may be one factor weighing on ASX cannabis shares right now.

For instance, Little Green Pharma reported a 218% surge in revenue to $7 million in FY21 alongside some key strategic moves. The Aussie cannabis group successfully imported its first shipment of THC 16 cannabis flower medicine from Denmark to Australia, sparking a share price surge at the time.

With no major regulatory news in recent weeks, it appears that the recent earnings season has sparked a pullback from investors. The Incannex Healthcare Ltd (ASX: IHL) share price has rocketed 166.7% higher in 2021 but still edged 1.2% lower in the last 5 days.

That could indicate investors in ASX cannabis shares are cashing in some of their recent gains rather than any fundamental correction in value.

Some shares, like MGC Pharmaceuticals Ltd (ASX: MXC), have been boosted by recent announcements. MGC Pharma received approval for the UK import and prescription of its CannEpil+ product last week which sparked a share price surge.

One factor could be the risk of increased competition in the sector. Cronos Australia (ASX: CAU) and Queensland-based CDA Health entered into an $85 million merger announcement last week as it looks to increase the size and scale of its operations.

Foolish takeaway

It's been a busy little period for ASX cannabis shares. Given the fledgling nature of the industry and the size of these Aussie companies, investors will be keeping a close eye on them in the final quarter of the year.

The post What's going wrong for ASX cannabis shares lately? appeared first on The Motley Fool Australia.

At Friday's closing bell, Little Green Pharma shares finished the day down 2.04% to 72 cents apiece. They are now down 22.5% since the start of July

What has Little Green Pharma recently announced?

In late August, Little Green Pharma released its preliminary report for the 2021 financial year, highlighting mixed results.

The company generated more than $7 million in revenue, up 218% over the prior corresponding period. The robust performance came from the sale of medicinal oil and flower products.

On Little Green Pharma's bottom line, profit after tax came to $24.6 million, an improvement from the $9.3 million loss in FY20. While this appears a sound performance, the $25 million gain on the purchase of the Denmark facility bumped up the end result.

In addition to the result, Little Green Pharma was granted a Schedule 9 licence to supply psilocybin by the Western Australian government. The licence is a key element of the company's entry into the international field of psychedelic drugs to treat mental illness.

Furthermore, Little Green Pharma successfully imported its first shipment of its THC 16 cannabis flower medicine from its Danish facility into Australia. The Little Green Pharma share price jumped on this news.

Regardless of the positive progress, Little Green Pharma shares have tanked from the beginning of July. Its peers too, Creso Pharma Ltd (ASX: CPH) and Althea Group Holdings Ltd (ASX: AGH) have not been immune. They have fallen 12.5% and 27%, respectively.

A possible catalyst for the fall could be weak investor sentiment as the cannabis sector has been slow to take off. In 2018, there was massive hype in cannabis products, but this has since waned.

About the Little Green Pharma share price

Over the past 12 months, Little Green Pharma shares gradually moved upwards to advance around 150%. The strong accent came off the back of late 2020 where the cannabis sector took off following optimistic investor sentiment.

However, in 2021, the company's share price moved relatively sideways, registering gains of approximately 30%.

The post Why the Little Green Pharma (ASX:LGP) share price has lost 20% since July appeared first on The Motley Fool Australia.

Little Green shares finished yesterday's close at 84 cents, before dropping to an intraday low of 80 cents after the market open. Currently, the Little Green Pharma share price is trading flat at 81 cents.

Here we cover the moving parts in Little Green Pharma's results in finer detail.

Quick recap on Little Green Pharma

Little Green Pharma is a medicinal cannabis pure-play that cultivates and produces products for the medicinal cannabis industry.

It also has a hand in research and development (R&D) plus the manufacturing and distribution of these products in the Australian market.

The company's operations are vertically integrated, meaning it has full control over its entire supply chain for efficiency purposes.

Little Green Pharma has a market capitalisation of $188 million at the time of writing.

Little Green's quarterly results

The company recognised revenue of $600,000 this quarter, with cash receipts totalling $1.82 million, up 20% from the previous quarter.

The discrepancy between revenue and cash receipts boils down to "a change in wholesaling agreements" that the company realised this quarter.

In a nutshell, Little Green had to revise its agreements with all Australian distribution partners after the Therapeutic Goods Association (TGA) updated its clarifications "regarding wholesaling rules for unregistered medicines".

The change enforces the company to recognise revenue only when its product is sold to the pharmacy, instead of when it is sold to the wholesaler.

Consequently, the company recognised a significant down-step in revenue from the previous quarter, when it recorded revenue of $2.3 million.

Little Green anticipates revenue trends to normalise by the next quarter and estimates revenue of $3 million for Q1 FY22.

Additional takeouts

In other recent updates, Little Green last week completed the acquisition of a medicinal cannabis facility in Denmark for $10.9 million.

As a result, it recorded increased production and staff costs "associated with the Denmark facility".

Little Green labelled the facility as "one of the largest production assets in Europe". In addition to improving efficiency, it produced more than 20 tonnes of biomass annually, including over 12 tonnes of "dried cannabis flower".

Offsetting these expenditures, the company completed a capital raise of $26 million "net of costs", with "strong support from institutional and sophisticated investors".

Moreover, Little Green realised a "record growth in underlying patient demand", adding a 37% increase to new patients and 25% increase in dispensed products.

This brings the total of new patients and products dispensed to 3,300 and 11,200 respectively.

Little Green Pharma share price snapshot

The Little Green Pharma share price has posted a year to date return of 43%, extending the previous 12 month's return of 122%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of ~23% over the past year.

Additionally, Little Green finished the quarter with $40 million in cash on its balance sheet.

The post What's happening with the Little Green Pharma (ASX:LGP) share price today? appeared first on The Motley Fool Australia.