Cannabis & Hemp Stocks Investment Tools – Schedule Demo Now!

AusCann Cannabis Stocks

AusCann Cannabis Stock (ACNNF)

AusCann is a pharmaceutical company focusing on pre-clinical drug candidate development and production. They focus on cannabinoid drug candidates and are located in Australia.

Is AusCann Cannabis Stock (ACNNF) a strong BUY and HOLD?

ACNNF Fundamental Analysis

Profile

HQ: Perth, Western Australia
Founded: 2013
Symbol: ACNNF (OTC), AC8 (ASX)

FocusStrong 

Producing and selling medical cannabis to patients in Australia, and later the world. They are focused on creating cannabis treatments for pain, plus other conditions.  This is a $9 billion market in Australia alone. Many investors know of them from their relationship (now closed) with Canopy Growth. 

Size: Neutral

Market Cap: $31.6 mil
Enterprise Value: $17.94 mil
Number of Employees: 32

Markets: Neutral

Primary: Initially Australia (and Tasmania), where medical MJ is legal, but adult use is not (nor expected soon). Also Chile, through a partnership

Secondary: MA, CT, PA, and CA in the near future, Canada

Subsidiaries, Interests:
DayaCann (Chile), Yarra Glen Vineyards Holdings, ACN 096 717 458 Pty Ltd, Australian Commercial Wines Pty Ltd.
 

Operations: Neutral

Cultivation: None
Current production: Drug development focusing on their first product, for chronic pain, a dry powder 50:50 ratio of THC:CBD in a hard shell capsule formulation.

Distribution: Initial sales of their capsules are currently being ordered.
Direct sales: Yes

Store networks: Has an agreement with the leading Australian pharmacy API to distribute medical cannabis through nationwide pharmacy networks

Integration/Diversification: 
Vertically integrated: Yes
Horizontally diversified: No

Financials: Weak

Revenue (2019): $671,000
Shares Outstanding (diluted): 317 million
Return on Equity: -18.55%

Management: Neutral

CEO: Nick Woolf
CFO: Quentin Megson
Director: Max Johnston
Director: Bruce McHarrie
Director: Krista Bates

Old CEO Ido Kanyon stepped down in May. Much of the Board also turned over this year. The end of their relationship with Canopy late last year also shifted the directors. There has been a LOT of turnover for AusCann.

Branding: Neutral

Most of their drugs cover anti-convulsion, anti-inflammatory, anti-nausea, glaucoma, pain management, and appetite stimulation areas. They have not branded any of their drug candidates yet as none are approved.

Valuation: Weak

Current share price: $0.095
Price to Sales: 13,190
52 week low/high: $0.067-$0.25
EV/Revenue: 5,600
Price/Book: 1.22

Financing: Strong

AusCann has no debt but is burning cash fast, typical of most pharma companies undergoing drug development. Clinical trials are expensive, and they have over $34 million to pay for the next few (company net assets were reported at $34.37 million). They reported $7 million in losses last fiscal year. 

 

ACNNF Technical Analysis

Should I buy AusCann Cannabis Stock?

Is AusCann Cannabis Stock (ACNNF) a Buy?

Follow Stephen Goldman as he investigates the differences between common momentum-based indicators such as the MACD and KST (Know Sure Thing) while learning how to spot opportunities to buy and sell AusCann.

Remember sound cannabis stock trading strategies include both Fundamental Analysis and Technical Analysis.

52 week Range -
/

Bottom Line: Is AusCann Cannabis Stock (ACNNF) a Buy?

Recommendation: Weak

Is AusCann Cannabis Stock (ACNNF) a Buy?

AusCann is often referred to as having the lead position in the Australian cannabis industry. They used to have Canopy Growth as 10% investors but now Canopy has been replaced by local Australian Merchant Capital.

From a licensing perspective, they are ahead of other competitors in Australia. They can produce, sell import, and export. They may have a strong position if they can deliver on production and distribution. It’s a big unknown.

The company has reported only $671k in revenue for the year ending Dec 2019. This revenue was not based on sales as none of their drug candidates are approved. The drug furthest along is their 1:1 THC: CBD capsule for chronic pain indications. This would be a large market to enter (Pain drugs) but they are still a way away from sales for this drug.

Its price to sales ratio is an astronomical 13,000 and they EV/Revenue is 5,600. We don’t typically see values this high in our analyses (remember lower is better here).

They do have a partnership with Tasmanian Alkaloids Pty Ltd. to distribute medical cannabis in Tasmania. TasAlk produces 40% of the world’s alkaloid raw material and a partnership with DayaCann, the only licensed medicinal cannabis grower in Chile. These deals extend their reach internationally.

For all the reasons above, we rate this stock as Weak. Perhaps in a few more years, their drugs will be closer to approvals and they’ll be closer to revenue. Until then, expect dilution if you’re a shareholder.

For all the reasons above, we rate this stock as Weak but check out our other featured companies for many other winners in the cannabis and hemp industry.

Symbol Name Last Price Change % Change

Industrial Hemp Market Accounted for Nearly $4 Billion in 2020

Industrial Hemp Market Accounted for Nearly $4 Billion in 2020 hemp industry projections are on a promising trajectory to grow at promising 16.27% CAGR during 2021-2027 period. The Industrial hemp market forecast estimated that industrial hemp accounted for USD 3.91...

3 Best Hemp Stocks for 2021

Five years ago, the cannabis sector emerged as one of the most promising new sectors for long-term growth investors. Most hemp stock investors understand the explosive growth of the global hemp industry but remain unsure about the best hemp stocks to invest in....

Magic Mushrooms: The Next Best Health Supplement?

Magic mushrooms, also referred to as shrooms, have received a lot of criticism in the past. Fortunately, the clouds of uncertainty have been waved off, especially after many researchers have backed magic mushrooms. But are magic mushrooms really the next best health...

Is GNLN a Strong Buy?

Greenlane Holdings (GNLN) distributes and supplies vape products and accessories for smoke shops and dispensaries. Greenlane recently completed their merger with one of their largest competitors. But is GNLN a strong buy? The firm offers packaging, rolling papers,...

22nd Century: Is this Cannabis Stock a Buy and Hold?

22nd Century Group (Nasdaq: XXII) is a leading plant biotechnology company focused on technologies that alter the level of nicotine in tobacco plants and the level of cannabinoids in hemp/cannabis plants through genetic engineering, gene editing, and modern plant...

Urban-Gro: Is this Cannabis Stock a Strong Buy?

With a 2021 IPO sending the stock soaring to 400%, Urban-Gro should definitely be on the minds of every cannabis stock investor. But is Urban-Gro stock a strong buy? Urban-Gro (Nasdaq: UGRO) supports cultivation facilities by performing design, architectural, and...

Why are we Bullish on Green Thumb Industries?

If you're reading this, you probably already know that cannabis stocks have the potential to increase your wealth at an attractive rate over the next 5-10 years. However, with 500 cannabis stocks crowding the sector, it can be difficult to pick the winners. We do find...

Is it Too Late to Invest in IIPR?

With YTD gains of over 50%, Innovative Industrial Properties (NYSE: IIPR) should definitely be on the minds of every cannabis stock investor. But is it too late to invest in IIPR? IIPR is a Maryland corporation focused on the acquisition, management, and ownership of...

3 Volatile Large-Cap Hemp Stocks to Watch for 2021

3 Volatile Large-Cap Hemp Stocks to Watch for 2021 Given everpresent market volatility, it's become pretty clear that investing in cannabis and hemp stocks is a long-term play. There are several fundamental issues impacting the cannabis industry which will mean hemp...

How Do I Invest for Income?

How Do I Invest for an Income? Stock Market investors can focus on income generation using some of these techniques. How Do I Invest for Income? If you’re reading this, you’re probably curious about how to invest for an income. Investing for an income is critical for...