Legal cultivation of cannabis gets a step closer
Published 10-FEB-2016 12:07 P.M.
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Legislation allowing the cultivation of cannabis for the manufacture of therapeutic products hits parliament today – and it appears it has a great chance.
This morning health minister Susan Ley announced the introduction of legislation eight weeks in the making, describing it as the “missing piece” of medical cannabis legislation.
Amendments to the existing Narcotics Drugs Act are being pursued to allow the controlled cultivation of cannabis of medicinal or scientific purposes into a single unifying scheme – which would be a first for Australia.
At the moment there are provisions to allow the legal production and distribution of medical cannabis products, but there’s no single unifying scheme allowing for the cultivation of cannabis for therapeutic products.
Hence, Ley described it as a “missing piece”.
“For Australia, this is the missing piece in a patient’s journey,” Ley said in a statement.
“Importantly, having a safe, legal and reliable source of products will ensure medical practitioners are now at the centre of the decision making process on whether medicinal cannabis may be beneficial for their patient.”
It would appear that on a sentiment basis at least the legislation will enjoy bi-partisan support.
In 2014 a similar bill was introduced by the Greens but endorsed by both Liberal and Labor senators that would allow a national regulator – demonstrating that the issue has broad bi-partisan support.
Should the latest bill pass both houses, it would open the way for companies in the medical cannabis space to take more control of the supply chain within Australia.
Companies which would benefit include MMJ Phytotech (ASX:MMJ) and MGC Pharmaceuticals (ASX:MXC).
After merging with Canadian-based MMJ Bioscience last year MMJ is developing a range of CBD-based products aimed at the growing global market for medicinal cannabis, in partnership with a leading scientific research centre in Israel.
MMJ already has sold its first CBD-based pill via European distribution partners, with the sale taking place late last year.
MGC Pharmaceuticals (ASX:MXC) is aiming to produce high quality resins, oils, salves and creams made from CBD with growing operations in Slovenia and Namibia.
Last year, MXC became the first Australian registered company to gain permission to grow, process, import and export an unlimited quantity of Cannabis Sativa L (hemp) and its products.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.