Althea Share Price Surge Continues | ASX:AGH

By Lachlann Tierney, Monday, 14 September 2020

At the time of writing the share price of Althea Group Holdings Ltd [ASX:AGH] is up nearly 10%, to trade at 63.5 cents. There are two things working in favour of the AGH share price at the moment...

At the time of writing the share price of Althea Group Holdings Ltd [ASX:AGH] is up nearly 10%, to trade at 63.5 cents.

Since the March market lows, the AGH share price has since gone on a significant run over the last two weeks:

Source: tradingview.com

There are two things working in favour of the AGH share price at the moment.

Canadian licence boosts AGH share price

In today’s announcement, their Peak Processing Solutions subsidiary got the go ahead from Health Canada — so their operations can immediately commence.

In particular, Peak is focused on infused beverages.

So, a significant boon for Althea in a massive market.

Secondly, another recent announcement from the company welcomed a change of TGA policy with regards to CBD products in Australia.

Meaning that in consultation with a pharmacist, Australian patients will be able to get CBD without a prescription.

It’s an interim decision, but it I think it will materially impact Althea’s revenue in the coming quarters, as it is very focused on the fledgling Australian market.

Outlook for AGH share price

Althea went on an immense run in mid-2019 but was savaged by a broader trend in cannabis stocks globally.

With limited revenues many of these companies sold off despite the significant long-term potential.

It’s quite possible that March was the bottom for the AGH share price and future positive news flow could drive AGH higher.

It will be interesting to see the next quarterly now that Peak is up and running.

Regards,

Lachlann Tierney,
For Money Morning

PS: Four Well-Positioned Small-Cap Stocks: These innovative Aussie companies are well placed to capitalise on post-lockdown megatrends. Click here to learn more.

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Lachlann Tierney

Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy is nearing completion of a PhD in economics at RMIT University, where his research focuses on blockchain governance and voting systems. His work was housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He holds a Master’s degree from the London School of Economics and an Honours BA in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

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