Australia Cannabis Investing: What You Need to Know

Australia cannabis investing: How to invest

Since the country’s cannabis space is still in its early stages, the Australian market hasn’t yet reached its peak. However, more cannabis stocks are expected to list on the Australian Securities Exchange (ASX) in the future, which means more investment opportunities.

Elixinol Global (ASX:EXL) was formed in 2018, when Colorado-based Elixinol partnered up with Hemp Food Australia to form an international brand and launch an initial public offering.

While Hemp Food Australia manufactures and distributes hemp food and skincare products, Elixinol is a retail provider on the CBD side of things, with dietary supplements and topical cannabis products. Elixinol has focused on building a solid global footprint with operations in the Americas, Europe and Asia.

In its FY 2022 annual report, Elixinol made improvements to its revenue despite rising costs. Its profitability rose 26 percent from the previous year. In 2023, the company is focusing its attention on a prospective acquisition of The Sustainable Nutrition Group (ASX:TSN), which could improve the company’s manufacturing capacity.

Another big player in the Australian space is Cann Group (ASX:CAN,OTC Pink:CNGGF). Established in 2014, Cann Group was the first cannabis company to be issued a cannabis research licence and the first to be issued a medical cannabis cultivation licence by the Australian government.

It has since worked to develop and supply cannabis, cannabis resin and medical cannabis products to patients for everything from multiple sclerosis to chronic pain. It does so using its own dry cannabis flower, which puts it ahead of the pack in a market that is still largely driven by imports.

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Cann Group has the capacity to produce 12,500 kilograms per year of dry cannabis flower for international and domestic medical cannabis markets at its Mildura growing facility in Victoria, which it completed in 2022 with support from the National Australia Bank.

There is also Althea Group (ASX:AGH), a producer, supplier and exporter of pharmaceutical-grade medicinal marijuana; it received its licence to cultivate medical cannabis in 2018. Currently, the company operates in regulated medical cannabis markets, including Australia and the UK.

In late 2020, the company received approval to sell cannabis products in Germany. The approval made Althea Germany’s first commercial supplier of made-in-Australia medical cannabis products. The German medical cannabis market is expected to be worth approximately AU$2.4 billion by 2025, as per the Market Herald.

Althea has made outreach an important part of its business model, as shown by its Althea Concierge platform, a free online service that allows healthcare professionals to access treatment plans with information about specific Althea cannabis products.

In its financial year 2022 to 2023 results, Althea reported a record AU$36.38 million in cash receipts and AU$25.09 in revenue, up 62.2 percent and 22.3 percent respectively over the previous year.

Some of the largest names in Canada’s cannabis landscape, such as Aurora Cannabis (NYSE:ACB,TSX:ACB) and Canopy Growth (NYSE:CGC,TSX:WEED), are in the region as well. Aurora has a partnership with MedReleaf Australia, a pharmaceutical cannabis company, and together they provide Aurora’s products using their MedReleaf Concession Scheme. The program supports “those with Pensioner Concession Cards, Commonwealth Seniors Health Cards, Health Care Cards, and Veterans Cards” and offers compassionate pricing.

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In 2018, Canopy launched Spectrum Cannabis Australia, a medical cannabis company. Now called Spectrum Therapeutics, the company, which remains a subsidiary of Canopy Growth, states it is developing “innovative cannabis-based products to create a range of effective formulations and delivery mechanisms and research their therapeutic effects.”