The outlook for the Horizons Marijuana Life Sciences Index ETF (HMMJ) hit a weekly high on Thursday, hitting 87.73% on the six-month performance chart before close, after it became known that tobacco giant Philip Morris International is weighing a move into the cannabis market.
In an interview with Bloomberg News, Phillip Morris CEO Andre Calantzopoulos stated that the company is currently considering a number of variables before entering the marijuana space, including the product’s effectiveness, toxicity, and the possible differences between tracking the market for pharmaceutical or recreational applications.
Phillip Morris dipped his toes into the cannabis sector about five years ago when he invested in Israeli medical cannabis company Syqe Medical. The aim of this agreement, however, was to secure the exclusive global rights to the company’s smoke-free “high-precision” technology.
“We do all of this work and one day we will determine which paths to take. But our priority is what we do with our smoke-free products, and that’s where I would stick with cannabis, ”said Andre Calantzopoulos, CEO of Phillip Morris.
Conversely, the Australian cannabis index declined again last week, while the S&P 500, up 27.87%, overturned the outlook on the Australian All Ordinaries.
Image: The Green Fund
Australian medical cannabis company Cann Group (ASX: CAN) ended the month with its share price up 2.08% after announcing it was shipping more than 20,000 bottles of cannabis extract to iuvo Therapeutics.
The company’s latest quarterly activity report was also released this week, showing cash flow up $ 3,988,000 from the previous reporting period.
This was partly due to a 23% reduction in manufacturing costs coupled with an increase in customer revenue of nearly 500%, although the lion’s share was generated by a payment from the Australian Treasury under the government’s R&D incentive system.
“The recent exports of cannabis medicines to Europe confirm the growing opportunities for Australian producers. We look forward to strengthening the relationship with iuvo over the coming years and bringing more value-added products to the fast growing European market, ”said Peter Crock, CEO of Cann Group.
Cann Group posted a $ 3.57 million decrease in cash for the quarter due to a “cybersecurity incident” that occurred earlier this year. The company has confirmed that legal action has been taken to recover the lost funds. However, a solution to the problem is not expected until the end of 2021.
The Green Fund’s Australian Cannabis Index allows investors to compare top players in the Australian cannabis space with the S & P500, AORD and HMMJ, and get an overview of the health of the industry Down Under.
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