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High rolling cannabis stocks continue to surge

High rolling cannabis stocks continue to surge

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As Finfeed discussed on Friday, ASX listed stocks leveraged to the cannabis industry were set to benefit from changed legislation regarding the use and importation of medical cannabis in Australia.

Creso Pharma (ASX: CPH) is one such player, and its shares closed at 31 cents last Friday representing a gain of nearly 35% over the previous fortnight.

However, this story is just gaining traction, and CPH’s shares surged another 10% on Monday morning.

CPH is one of the better placed players in this space in terms of benefiting from regulatory changes given that it had already negotiated a Letter of Intent with an exclusive licensed Australian distributor in Health House International for the import and sale of cannabis products.

MGC Pharmaceuticals builds on last week’s 40% gain

The other cannabis stock to rally substantially over the last fortnight was MGC Pharmaceuticals (ASX: MXC). Its shares spiked last week from 3.8 cents to hit a high of 5.1 cents, representing a gain of more than 40%.

While they finished the week at 4.6 cents, the stock has rallied more than 4% on Monday morning.

A key driver last week was the announcement that the group was on track to commence first production from its Slovenian based cannabinoid extraction facility in the second quarter of 2017.

Once operational, the company will have the ability to extract and produce high margin cannabinoids in resin form, facilitating the production of medical grade cannabis products.

It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.