Cannabis stocks jumped after marijuana rescheduling recommendation in the US
Study in Australia shows cannabis is effective on a range of conditions
We take a look at the best performing ASX stocks over the past week
Cannabis stocks operating in the US jumped higher this week after a US health agency’s proposal to reclassify marijuana as a lower-risk substance.
On August 31, the US Department of Health and Human Services asked the Drug Enforcement Agency (DEA) to consider easing restrictions on marijuana to a Schedule III drug.
Since the 1970s, marijuana in the US has been classified alongside heroin and LSD as Schedule I drugs – or substances deemed to have no medical use and a high potential for abuse.
But a downgrade to Schedule III could be a significant catalyst for an industry hemmed in by US federal regulations, even as restrictions have begun to ease at state level.
According to the DEA, Schedule III drugs are defined as “drugs with a moderate to low potential for physical and psychological dependence.”
Schedule III drugs abuse potential is also less than Schedule I and Schedule II drugs, but more than Schedule IV.
“It’s very clear that Americans are ready for this, and it’s time for our political leaders to catch up,” Boris Jordan, executive chairman of Curaleaf, said shortly after the news broke.
“Moving down to Schedule III will provide a massive boost to our industry, particularly social equity and small business owners who have suffered the most under the status quo.”
Australian clinical study shows cannabis is effective
Meanwhile in Australia, a clinical study report released on Thursday has found that medicinal cannabis significantly improves pain, quality of life, fatigue, moderate-severe anxiety and depression.
The Quality of Life Evaluation Study (QUEST Intiative) is one of the world’s largest longitudinal clinical studies investigating the effect of medicinal cannabis on patient quality of life.
The initiative is sponsored by Little Green Pharma (ASX:LGP), and was led by the University of Sydney. The study was also supported by non-profit private health insurance provider, Health Insurance Fund of Australia (HIF).
Analysis from the 2,327 Australian patients participating in the QUEST Initiative shows very strong evidence of clinically meaningful improvements for those suffering health-related quality of life and fatigue.
The study also found clinically meaningful reductions in pain, and significant improvements for moderate-severe anxiety and depression.
The study says these outcomes hold substantial clinical significance, particularly given the strict eligibility criteria for medicinal cannabis prescription in Australia where patients must have exhausted conventional treatment options.
“It is remarkable for a single medication (cannabis) to exhibit a positive impact on treatment-resistant patients across such a broad range of medical conditions,” noted the HIF.
To ASX Weed Stocks ….
Here’s how the ASX weed stocks have performed, sorted by winners over the past week.
Code Company Price % Week % Month % 6-Month % Year Market Cap LV1 Live Verdure Ltd 0.16 73.91 88.24 6.67 -28.89 $16,156,630 BOD BOD Science Ltd 0.08 23.08 -8.05 33.33 -2.44 $14,037,079 ALA Arovella Therapeutic 0.07 16.67 50.54 133.33 191.67 $60,431,642 ECS ECS Botanics Holding 0.03 13.64 8.70 8.70 -3.85 $27,668,267 EMD Emyria Limited 0.09 7.50 -10.42 -51.55 -66.92 $26,826,390 IRX Inhalerx Limited 0.05 6.67 23.08 6.67 -15.79 $9,108,814 EOF Ecofibre Limited 0.18 5.88 -12.20 -14.29 -33.33 $67,858,619 LGP Little Green Pharma 0.19 5.71 -5.13 8.82 -38.33 $55,423,843 HGV Hygrovest Limited 0.06 5.66 14.29 -20.00 -12.50 $10,725,841 NTI Neurotech Intl 0.05 2.00 2.00 -5.56 -46.32 $44,569,384 DTZ Dotz Nano Ltd 0.20 0.00 5.41 -18.75 -27.78 $94,623,347 CTV Colortv Limited 0.01 0.00 0.00 0.00 0.00 $1,236,985 BP8 Bph Global Ltd 0.00 0.00 0.00 -84.81 -84.81 $2,669,460 WOA Wide Open Agricultur 0.33 0.00 0.00 58.54 -46.28 $46,566,576 CAN Cann Group Ltd 0.13 0.00 0.00 -25.88 -55.79 $53,250,511 RGI Roto-Gro Intl Ltd 0.22 0.00 0.00 0.00 0.00 $4,333,920 AC8 Auscann Grp Hlgs Ltd 0.04 0.00 0.00 0.00 0.00 $17,621,884 MDC Medlab Clinical Ltd 6.60 0.00 0.00 0.00 -49.23 $15,071,113 EVE EVE Health Group Ltd 0.00 0.00 0.00 0.00 0.00 $5,274,483 CGB Cann Global Limited 0.02 0.00 0.00 0.00 -8.70 $5,436,345 WNX Wellnex Life Ltd 0.05 0.00 0.00 -19.70 -34.57 $22,704,470 AGH Althea Group 0.04 0.00 -6.98 -13.04 -54.02 $15,485,686 ROO Roots Sustainable 0.00 0.00 -20.00 -66.67 -92.59 $554,889 IDT IDT Australia Ltd 0.06 -6.15 -11.59 -4.69 -53.08 $21,431,566 ME1 Melodiol Glb Health 0.01 -7.14 -35.00 -45.83 -81.94 $17,683,922 EPN Epsilon Healthcare 0.02 -9.09 -9.09 -4.76 -23.08 $6,007,080 ZLD Zelira Therapeutics 1.00 -9.09 -37.69 -1.96 -33.33 $11,233,683 VIT Vitura Health Ltd 0.35 -10.39 -25.81 -33.01 -41.03 $198,101,385 IHL Incannex Healthcare 0.07 -10.98 -18.89 -51.33 -73.45 $117,438,766 AVE Avecho Biotech Ltd 0.01 -14.29 0.00 -40.00 -53.85 $12,972,982 BOT Botanix Pharma Ltd 0.17 -15.00 13.33 115.19 150.00 $241,603,458 RNO Rhinomed Ltd 0.06 -15.49 -1.64 -40.00 -62.50 $17,143,182 WFL Wellfully Limited 0.00 -25.00 -25.00 -80.00 -87.50 $1,478,832 EXL Elixinol Wellness 0.01 -27.27 -33.33 -66.67 -77.78 $5,638,344 MXC Mgc Pharmaceuticals 0.00 -33.33 -33.33 -75.00 -87.50 $8,509,936
The hemp specialist was the best performing weed stock this week after receiving commitments for a $1.68 million from new and existing sophisticated shareholders.
The funds raised will be used for new product development, and fund working capital requirements for large retail partnerships.
The proceeds will also enable LV1 to conduct further due diligence on prospective partnership and M&A opportunities.
Since the acquisition of Edible Beauty in 2022, Live Verdure says it has received an increasing number of local and international inquiries regarding companies looking to be acquired by or partnering with LV1.
Bod announced that its Schedule 3 Clinical Trial CBD 100mg displayed advantage over placebo, supporting its commercialisation plans.
The preliminary top line results showed that CBD 100mg had a statistically significant advantage over placebo, with a p-value of 0.04.
A small p-value (typically ≤ 0.05) indicates strong evidence that the results are not due to chance.
Arovella got a speeding ticket from the ASX after its shares surged on August 30.
The company responded and said that it could be due to a report by Blue Ocean Equities which had highlighted the company’s recent progress and upcoming milestones as well as an upcoming roadshow.
“Whilst there was no new information in this summary, it was presented in a new format with outreach to an extended group of investors via social media,” noted Arovella.
In its full year update, ECS reported positive EBITDA in FY23, and momentum following major contract wins.
The company delivered record FY23 consolidated revenue of $15.6 million, up 117% on pcp.
EBITDA from continuing operations was $1.6 million (10% EBITDA margin), reflecting its focus on profitable growth.
During the year, ECS executed major long-term Australian and international supply agreements, and produced a record 4.2 tonnes of medicinal cannabis, a 51% increase over the prior season.
For the full year FY23, the hemp company’s revenue was up 8% on pcp to $32.5m.
Normalised EBITDA was a loss of -$13.2m, an improvement on FY22 loss of -$17.2m.
Ecofibre refocused the business and reset its cost base in in the second half, which delivered $11m in annualised cost savings.
Neurotech has concluded the last patient last visit at the Children’s Hospital at Westmead in Sydney for its groundbreaking Phase I/II trial of NTI164 into the treatment of orphan disorder PANDAS/PANS.
A total of 15 paediatric patients have now successfully completed daily oral treatment with NTI164 over the initial 12 weeks of the trial, with 100% of patients continuing to receive treatment under the extension phase (54 weeks) of the trial protocol.
NTI164 is a proprietary drug formulation derived from a unique cannabis strain with low THC and a novel combination of cannabinoids including CBDA, CBC, CBDP, CBDB and CBN.
The drug has been exclusively licensed for neurological applications globally with pre-clinical studies demonstrating a potent anti-proliferative, anti-oxidative, anti-inflammatory, and neuro-protective effects in human neuronal and microglial cell.
The release of the clinical trial outcomes is now forecast for mid to late September.
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Cannabis stocks jumped after US marijuana rescheduling recommendation. Australian study shows cannabis is effective on range of conditions. Read More