Auscann Group Holdings Ltd (OTCMKTS:ACNNF) is a micro-cap stock that’s clearly begun to spur some interest among players in the marketplace as shares bounce up off recent support. Shares broke out sharply higher in early January, but have spent the intervening period locked in a vicious battle between bulls and bears. With the 50-day simple moving average holding as strong support in a rising trend in February and early March, we thought it was a good time to take a closer look at this big mover in the cannabis space.
According to its most recent release from last week, AusCann has made a significant investment into acquiring the necessary licenses to complete its entire supply chain and is working closely with government, lawyers, consultants, and advisors to progress towards the commercialization of medicinal cannabis products. According to the release, “the Company invested approximately $4.8 million in H1 FY18 on research and development, operating costs, joint venture expenses, consulting and legal fees and other associated expenses. Included in this investment were share-based payments valued according to accounting treatment at approximately $2.7 million. AusCann ended H1 FY18 with approximately $12.3 million in cash and is well-funded to maintain its operational momentum.”
Auscann Group Holdings Ltd (OTCMKTS:ACNNF) is an Australian based company that was incorporated in September 2014 with the aim of producing and providing high quality, economical and clinically validated cannabis medicines to patients.
It is bringing together leading expertise and operations across all aspects of the medical cannabis value chain, beginning with cultivation and production, through to manufacture and distribution of products and has built a strong team of experts and partners with international connections.
Partners include TSX listed Canopy Growth Corporations the largest producer of medicinal cannabis globally and DayaCann, the only licensed medicinal cannabis grower in Chile.
AusCann Group Holdings Ltd researches, develops, cultivates, produces, and sells clinically validated cannabis medicines to patients in Australia. The company has a strategic partnership with Tasmanian Alkaloids Pty Ltd. AusCann Group Holdings Ltd is based in Joondalup, Australia.
According to company materials, “AusCann Group Holdings Limited (ASX:AC8) is an Australian-based pharmaceutical company that aims to produce high quality, economical, and clinically validated cannabinoid medicines. AusCann is bringing together leading expertise and operations across all aspects of the medical cannabis value chain, beginning with cultivation and production, through to manufacture and distribution of products. Through partnerships with industry experts, existing leading market participants and doctors, AusCann is building operations and educating the medical community about the benefits of cannabinoid medicines. Incorporated in 2014, AusCann is currently the only ASX listed company with the full set of necessary licences to grow and manufacture cannabinoid medicines in Australia. The company is initially targeting medications for neuropathic and chronic pain in Australia and Chile, whilst exploring global export opportunities.”
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AusCann Managing Director Elaine Darby: “We are very pleased with the operational momentum we achieved in H1 FY18 and the continuation of that momentum in the second half of the financial year. The completion of our supply chain has dovetailed nicely into progress we have made early in H2 FY18. We have made a strong start to the second half of the financial year with the signing of an agreement with Australian Pharmaceutical Industries for the Australia-wide distribution of our products. We look forward to updating the market on further developments as work towards our goal of supplying high-quality, economical and clinically-validated cannabinoid medicines.”
The chart shows 19% added to share values of the listing over the past week of action. This is emblematic of the stock. ACNNF has evidenced sudden upward volatility on many prior occasions. Furthermore, the company has seen interest climb, with an increase in recent trading volume of topping 100% beyond its prior sustained average level
Currently trading at a market capitalization of $33.1M, ACNNF has not filed an annual report for 2017 yet, according to the company’s website. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $ACNNF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ACNNF, either long or short, and we have not been compensated for this article.