The week in Small Caps: new financial year set to start with a bang, cannabis gets nod from FDA and US Senate
By
John Beveridge
-
June 30, 2018
https://*********.com.au/wp-content/uploads/2018/06/EOFY-new-financial-year-cannabis-FDA-US-Senate-640x400.jpg
WEEKLY MARKET REPORT
FacebookTwitterLinkedInWhatsappPrintEmail
Well another financial year is done and dusted and a new one has begun.
The first week of any month is usually a big one but the first trading week of a new financial year can be particularly busy as fund managers who have been holding back on new investments begin to buy.
Final trade on the ASX on Friday was fairly muted but it is interesting to see which sectors ended the year strongest, with energy stocks the absolute standout as oil prices added a significant spurt.
Energy stocks the clear winners
At the final bell for the financial year energy stocks were up an impressive 36.51 per cent for the year using Commsec numbers.
Other winning sectors included IT (27.36 per cent), materials (23.57 per cent), health care (22.87 per cent) and consumer staples (22.87 pe
Cannabis progress
The growth of medical cannabis as a legitimate and proven medicine reached a significant milestone this week after the FDA approved America’s first cannabis-based drug.
Epidiolex has been designed to treat severe epilepsy and despite passing FDA trials with flying colours which indicates cannabis-based medicines could soon be a regular occurrence – the regulator admitted that severe side-effects are also forthcoming on the back of the synthetic opioid.
Green light for Industrial Hemp
The US Senate gave the go-ahead for the US to restart its once-prominent hemp industry that that produced building materials, plastics, composite materials, clothing, nutritional supplements, food, fibres, rope and even biofuels.
That was before the petrochemical industry rolled in to steal its thunder. But now that cannabis has been sprung from government dungeons, even industrial hemp could soon be back on its way to store shelves and commercial allure, even for Aussie companies.
AusCann Group (ASX: AC8)
AusCann Group revealed plans to accelerate its cultivation in both Canada and Australia this week via an agreement signed with Jade Cannabis to undertake research and development work at its Canadian facility for the next 3 years.
Creso Pharma (ASX: CPH)
It would seem that cannabis liberation (and commercialisation) is reaching rather unprecedented levels on the back of the FDA and the US Senate.
Not one to stay behind the 8-ball, this week Creso Pharma announced the imminent launch of a range of hemp-based beers and adult soft drinks that are underpinned by hemp derived from the cannabis sativa plant.
Cann Group (ASX: CAN)
The rapid growth of Australia’s ‘pot stocks’ sector continues with Cann Group signing a deal with Australia Pacific Airports Melbourneto secure the site of Cann’s proposed stage three medicinal cannabis cultivation and manufacturing facility. Making it the largest of its kind in the country.
The Hydroponics Company (ASX: THC)
Joining the cannabis party this week was The Hydroponics Company which signed a potentially lucrative agreement with Canada’s Ascent Industries to share both cannabis product and knowledge to collaboratively grow their respective businesses.
The growing emergence of both Australian and Canadian firms on the back of softening legislation towards cannabis in both countries is quite remarkable considering the drug was entirely banned in recent times.
CannPal Animal Therapeutics (ASX: CP1)
If all the cannabis-related news wasn’t enough, CannPal added further commercial allure to the Australian medicinal cannabis sector with plans to harness cannabis (and the CSIRO) to help man’s best friend.
YPB Group (ASX: YPB)
The emergence of medical cannabis as a viable commercial market requires several key caveats such as product quality and quantity – but there is an additional aspect that remains key: authenticity.
YPB Group stepped up to provide just that this week, by announcing a three-year deal with Namaste Technologies, an emergent cannabis producer in Canada.
- Forums
- ASX - By Stock
- EPN
- Ann: THC North American Update
Ann: THC North American Update, page-20
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add EPN (ASX) to my watchlist
(20min delay)
|
|||||
Last
2.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $7.208M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
EPN (ASX) Chart |
Day chart unavailable
The Watchlist
LGP
LITTLE GREEN PHARMA LTD
Paul Long, Chief Executive Officer
Paul Long
Chief Executive Officer
SPONSORED BY The Market Online