Cann Global Share Price up on New Product (ASX:CGB)

By Lachlann Tierney, Monday, 26 October 2020

At time of writing, Cann Global Ltd’s (ASX:CGB) share price is up 20%, trading at 0.6 cents. While 20% sounds like a big jump, it’s a small blip in what is a long-standing slide for the CGB share price...

At time of writing, Cann Global Ltd’s [ASX:CGB] share price is up 20%, trading at 0.6 cents.

While 20% sounds like a big jump, it’s a small blip in what is a long-standing slide for the CGB share price:

Source: TradingView.com

We look at the details of their new product announcement.

Canntab product for Australian market

Here’s a quick summary of today’s announcement:

Medical cannabis tablets via its JV partnership with Canadian company Canntab Therapeutics
Import permit in place
Six formulations, two THC, two CBD and two blends
Complemented by large observational study or CMOS

So, an initial step in the right direction for CGB.

It helps to have products to sell.

CGB’s Managing Director Sholom Feldman highlighted the potential competitive advantages of the tablets given Australia’s tightly regulated market:

‘…we expect [the product] will be very sought-after by Doctors who are looking to prescribe pharmaceutical grade medicinal Cannabis products to their patients. It is our understanding from discussions with medical professionals that it is easier for them to prescribe a uniform dosage tablet.’

Outlook for CGB share price

Given the long-standing slide and the current sub-$20 million market cap CGB has, I’d be hesitant to say this is the beginning of a major trend reversal.

That being said, I’ve noticed a significant uptick in interest in ASX-listed cannabis stocks.

You can see how the ETFMG Alternative Harvest ETF [MJ] is tracking below:

Source: tradingview.com

A small bounce recently, but still a long way to go before it claws back its losses made over the course of the last 12 months.

It will be interesting to see how many of these beaten-down stocks get runs and revenue on the board after the hype drastically faded.

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 is 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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