What Happened to the PhytoTech Medical Share Price?
PhytoTech Medical Limited [ASX:PYL] is a newly listed Australian company. It is developing medical cannabis for the US, Canada, Israel, Europe, Australia and New Zealand.
PhytoTech Medical are developing, manufacturing and marketing a novel delivery system of medical cannabis. PhytoTech plan to bring to market a flexible mucosdhesive adhesive patch that will release the pain killing properties of marijuana in a controlled manner.
PhytoTech medical have the exclusive license for this patented product by Yissum Research Project.
Patients can take medical cannabis in a variety of methods including vaporising and smoking dried buds, eating extracts or capsules, or oral spray.
The share price closed 12.84% lower on Friday.
Why Did This Happen to PhytoTech Medical Shares?
This company has caught the market by surprise.
However the share price is volatile. Yesterday the stock closed up 9% higher to 54 cents, and today’s it’s taken a hammering.
Only six trading days in, PhytoTech Medical is already trading at more than double its 20 cent initial public offering price.
Within two days of listing, PYL shares soared to a high of 92c, before falling back to today’s closing price of 47.5 cents.
The company listed on the ASX on 22 January 2015.
What Now for PhytoTech Medical?
Already this is a tricky company to analyse.
I hit up our resident small cap expert Tim Dohrmann of Australian Small-Cap Investigator for a suggestion on what the unexpected share price activity could mean.
Tim tells me, ‘It’s one of two things. There’s either some funny business going on…or the more likely scenario is that no one actually knows what this company is worth or how to value it just yet.’
A progressive company that campaigns globally for legal use of medical marijuana may sound like an exciting investment to be part of.
However the volatility of the stock suggests that it may be too early to invest in it for now.
Editor, Money Weekend