How to buy Elite Cannabinoid shares

Posted: 18 February 2021 7:31 pm
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Elite Cannabinoid’s upcoming WA-based processing facility will be the largest such outfit in the entire Southern Hemisphere.

The medical cannabis industry has been growing at a rapid pace and has been making inroads into a number of countries including Australia in recent years.

Now a Perth-based cultivator, Elite Cannabinoids, has obtained the regulatory seal of approval from the government of Western Australia to produce and process a range of cannabis strains at an undisclosed site located somewhere 800 kilometres north of Perth, according to an article by ABC News.

Elite Cannabinoids is reportedly looking to utilise 46 hectares of land for the production of high-quality cannabis as well as set up an onsite pharmaceutical manufacturing facility, which is reportedly set to generate a total of 70 jobs in the Gascoyne region.

If all goes to plan, it will be the biggest medicinal cannabis facility in the entire Southern Hemisphere.

Since April 2020, cannabis stock prices within Australia have been gaining momentum, with this niche market experiencing a monetary uptick of over 100% over the course of the last 10-odd months.

With Elite Cannabinoids making its way into this burgeoning space, all eyes will be watching the impact on ASX cannabis stock prices across the board.

Can you buy Elite Cannabinoid shares?

Straight off the bat, you can’t actually buy Elite Cannabinoid equity as the company is not listed on the ASX or any other exchange for that matter. So, unless the firm applies for an IPO, it won’t be possible for investors to publicly buy the company’s shares anytime soon, unfortunately.

There's also very limited publicly available financial data from the firm or information about future moves. To date, the company's website doesn't appear to be functioning, so we don't have more information outside of the the odd news piece. However, according to TechBoard, the company has been established since 2016 with the goal of supplying a licensed cannabis manufacturing facility in Western Australia.

If you're bullish on the rise of Australia's cannabis market and want to invest via shares, other ASX cannabis stocks include: Ecofibre Ltd, Impression Healthcare and Creso Pharma Limited. Check out our list of ASX cannabis stocks for more information.

Lastly, it stands to reason that the Australian cannabis sector will likely experience a serious push in the near future, with experts like Will Chapman at IBIS World, an industry market research group, suggesting that over the course of the next five years or so, a lot of companies will look to establish their operations within the Australian cannabis space.

"Our research suggests that over the next five years, medical cannabis manufacturing will grow to a $575 million industry,” he said.

Are ASX cannabis shares set to rise?

Even though any relation between Elite Cannabinoids’ aforementioned government approval and ASX cannabis stock prices rising in the near term may be pure conjecture, there's no denying that the use of medical cannabis has been growing at a rapid pace across Australia.

For example, as per a statistical study released by the Australian Institute of Health and Welfare, nearly 600,000 Australians currently make use of medical marijuana on a daily basis as part of their personal treatment regimes.

Even though the Australian government legalised the production and cultivation of cannabis in 2016, the sector has remained relatively dormant, barring the pot stock mania of 2017 where a number of equity prices rose to unprecedented levels only to be brought back to reality fairly quickly.

That said, over the course of the last 52 weeks, a number of ASX-listed firms such as Ecofibre Ltd (ASX: EOF), Creso Pharma (ASX: CPH) and Impression Healthcare Limited (ASX: ICL), among others, have witnessed significant gains of over 100%.

Other ASX-listed companies that have gained some serious monetary traction recently include Cann Group Ltd (ASX: CAN), MCG Pharmaceuticals (ASX: MXC), Zelira Therapeutics Ltd (ASX: ZLD) and Althea Group Holdings Ltd (ASX: AGH).

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