Government approves medical cannabis exports, sparks ASX price surge

By Addie Thomes

The federal government has granted permission for Australian companies to export medical cannabis products, a move which has seen share prices in ASX-listed cannabis rocket by as much as 50%.

AusCann in particular has witnessed a sharp gain, its share price going up by 53% within a day, effectively adding $120mn to its valuation.

Other companies to benefit include Cann Group (35% increase), Creso Pharma (20%) and Bod Australia (39%).


AusCann revealed it will now start producing cannabis products to treat chronic pain and epilepsy, among other conditions, with a view to export by late 2018.

The government may be looking towards the example set by Canada, which has seen a rapidly growing sector contribute millions to its economy in recent months.

Medical marijuana is already legal in Canada and business is booming with the industry bringing in CA$869 million in legal sales in 2016. Taking this into account, Deloitte estimates the current cannabis market has a base retail value between $4.8-$8.7bn, which would rival the size of the Canadian spirits market, which is $5bn.

In 2016 the Australian government legalised patient access to medicinal cannabis products, Victoria and New South Wales among the first territories to roll the legislation out.


Featured Articles

Twitter timeline – how Musk pulled off a hostile takeover

Elon Musk strikes deal to buy Twitter for US$44bn following four months of cryptic tweets, secret meetings and buying of shares – here’s the timeline

Top 10 Asia restaurants, from Tokyo’s Den to Bangkok’s Sorn

From Tokyo to Bangkok, with cuisines spanning Cantonese, Thai and German, we highlight Asia’s top 10 places to eat, as per Asia’s 50 Best Restaurants

Microsoft: what Asia leaders need to know about hybrid work

Microsoft’s 2022 Work Trend Index guides Asia leaders to navigating a hybrid future – from making the office worth the commute to rebuilding social capital

Meet the company: EV Nio to list in Hong Kong, enter Europe

Leadership & Strategy

12 Tech trends to watch closely in 2022, from CB Insights


Why Deloitte Australia’s HR technology is winning awards

Human Capital