Australian Cannabis Stocks Jostle for Top Spot

Article by Joe Wilson, Leafly

Australian Cannabis Stocks Jostle for Top Spot

Hey mate, wanna buy some pot… stocks? Yes, Australian medical cannabis companies listed on the Australian Stock Exchange are hot items right now. But as investors rush to get in on the ground floor of a nascent market, things aren’t always working out as planned.

Consider MMJ Phytotech. Shareholders who bought into the company last year might now be scratching their heads. Since February 2016, the company’s share price fallen by roughly 40 percent.

Things had looked promising for the young Australian pharmaceutical firm. It had struck a reverse takeover deal that allowed it to enter the Canadian medical market, and it was in the process of setting up a “farm-to-pharma” supply chain that tied together production, research, and manufacturing.

But things took a turn in December, when MMJ Phytotech was forced to sell off two key subsidiaries: one that operates Canadian growing facilities and another Swiss company that manufactures a CBD pill. A Canadian company called Harvest One has since snapped up the subsidiaries in anticipation of Canada’s legalization of adult-use cannabis, set to take effect later this year.

Back in Western Australia, where MMJ Phytotech is headquartered, the Office of Drug Control is slowing things down domestically. The agency has yet to issue any licenses or permits for cultivation, production, or manufacture of medical cannabis.

Read full article here.

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