A look at top ASX Cannabis stocks for year 2022

Highlights –  

• The Australian cannabis sector is likely to gain more strength in Australia in the near time.  
• Many biotech companies are expanding their business in this industry, launching more cannabis-based products.  
• IDT, RHO, MXC and LGP gained over 100% in the last 12 months.  

 The Australian cannabis stocks have recently gained strength as their healthcare products and medicines took a quantum leap due to regulatory support.  

The Australian medicinal cannabis sector witnessed a major boost in FY21 after Therapeutic Goods Administration (TGA) down-scheduled cannabidiol (CBD)-based therapeutic products, allowing the Australian patients to purchase CBD products without prescription.  

Few Australian cannabis companies are taking clinical trials to verify their health benefits, whereas other companies are looking forward to expanding their businesses in the broader market.  

Increasing consumer awareness and rising legalisation of marijuana, mainly for medical purposes, have benefitted major Australian pot stocks like – Althea Group, Eco Fibre, Cann Group, and IDT Australia.  

In this backdrop, let’s have a look at some high performing ASX pot stocks.  

IDT Australia Limited (ASX:IDT) 

IDT Australia is an AU$141.51 million pharma products supplier and provides other technical services to the pharmaceutical and allied industries.  

Despite several headwinds caused by the pandemic, the company maintained a good financial position for the year ended 30 June 2021. According to its FY21 annual report-  

The company recorded a net profit after tax of AU$2.1 million, representing a year on year improvement of 209.6%.  

IDT’s revenue stood at AU$16.9 million, up 19.5%, and the Company finished the year maintaining a strong cash balance of AU$6.9 million.  

Earlier in October, the company executed a manufacturing agreement with Monash University.  

Rhinomed Limited (ASX:RNO) 

Australia based Rhinomed Limited manufactures pharmaceutical and healthcare products with a market worth of AU$78.68 million.  

Rhinomed has achieved several milestones during FY21. In September, the company appointed AntiMicrobial Technologies Group (AMT Group Australia Pty Ltd) as a Rhinoswab distributor in Australia.  As per its FY21 annual report –  

The Group reported cash reserves of AU$2.33 million for the year ended on 30 June 2021, down AU$5.41 million from FY2020.  

Group’s basic earnings per share (EPS) stood at AU$3.40.  

Despite several headwinds, the Group has reported increased APAC regional sales by 20% and anticipates continued sales growth in the Amazon Europe segment in FY22. 

MGC Pharmaceuticals Ltd (ASX:MXC) 

MGC Pharmaceuticals is an ASX listed European bio-pharma company, specialised in the production of phytocannabinoid-derived medicines.  

As per its last quarter results – ‘ 

The company reported record cash sales receipts of US$2.2 million for a consecutive 6-month period.  

MGC has delivered another strong quarter with US$964,000 cash receipts and phytocannabinoid medicine sales of US$564,000 for the three months ended on 30 September.  

In August, the company announced the execution of a landmark supply and distribution agreement with AMC Holdings.  

Little Green Pharma Ltd (ASX:LGP) 

In early September, ASX cannabis stock Little Green Pharma was granted a Schedule 9 licence from the WA Department of Health to supply psilocybin to eligible licence holders.  

As per its FY21 annual report-  

The company reported record revenue from its medicinal cannabis sales at AU$7 million, and the net cash flows from the investing activities stood at AU$12.73 million.  

Cash and cash equivalents stood at AU$40.26 million for the year ended on 30 June 2021. 

Little Green reported revenue growth of AU$3.18 million supported by record sales of AU$1.39 million for the September quarter. The company expects to expand its Australian flower range in the first half of FY22. 

Cann Group (ASX:CAN) 

ASX Pot stock Cann Group is engaged in the cultivation of cannabis for medical and research purposes and manufactures medicinal cannabis products. According to its latest quarterly report released in late October - 

The Group collected AU$1.470 million customer receipts for the quarter ended on 30 September 2021, up 158% from the previous quarter. 

Unaudited sales for September stood at AU$1.25 million. 

Cann undertook successful institutional placement to raise AU$10 million to complete the share purchase plan to raise further AU$8.6 million.  

In September, Cann announced that it had taken delivery of manufacturing equipment, enabling the company to produce unique Gelpell capsules at the new Mildura facility. 

Althea Group Holdings Limited (ASX:AGH) 

Althea Group is a holding company of Althea Company Limited and is a prominent player in the Australian cannabis industry. It is engaged in the production, commercialisation and sales of cannabis medicinal products. 

In August, the company successfully raised a capital of AU$10.64 million to support its strategic growth initiatives for continued global expansion.  

In September, AGH’s subsidiary – Peak Processing Solutions, entered into binding agreements with BBCCC Inc.  As per its latest quarterly report, Althea reported a record AU$4.5 million in receipts from customers for the quarter ended on 30 September. 

Ecofibre Limited (ASX:EOF) 

The AU$272.81 million - Ecofibre Limited is an Australian hemp-based product provider that owns crucial value chain segments in various businesses.  

In its FY21 annual report, EOF reported revenue of AU$28.8 million, down 43% due to a decline in revenue for Ananda Health, which was partially offset by increased revenue for Hemp Black from AU$2.4 million FY2020 to AU$11.9 million in FY2021. 

Group’s net tangible assets per share for the year stood at AU$17.64, and earnings per share (EPS) declined to 2.6 Australian cents.  

Auscann Group Holdings Limited (ASX:AC8) 

ASX pot stock Auscann Group Holdings is a manufacturer of medical cannabis products. According to Auscann’s FY21 annual report –  

The company reported a consolidated loss of AU$8.64, million and the net cash used in operating activities was reduced by 45% to AU$5.75 million.  

Despite losses, AusCann remained well funded with net assets of AU$44.42 million, maintaining a net cash position of AU$13.67 million.  

The company is heading towards the development and commercialisation of its lead pipeline candidates by FY22.