Emerald Clinics Share Price Soars on UK Cannabis Deal (ASX:EMD)

It’s been a while since we’ve seen a pot stock make waves in the local market.

Today though, the tiny Emerald Clinics Ltd [ASX:EMD] share price is lighting up the ASX. Currently trading 53% higher after announcing a new deal. And at one point, peaked at a high of 104%.

Needless to say, the market was extremely receptive to this new deal.

For good reason too, because Emerald will be working with the biggest cannabis company in the world…

The hunt for ‘real’ results

Emerald will be working alongside Spectrum Biomedical. A UK-based subsidiary of the much larger Canadian company, Canopy Growth Corp.

Together, the pair hope to shed some light on the benefits of Spectrum’s medicines. Putting their ‘real-world evidence’ procedures to the test in a clinical setting. As Emerald explains:

Emerald will be responsible for the collection of specific data points including de-identified patient information, use of concomitant medicines, prescribed usage and diagnoses, and a range of patient reported outcome measures.

These data will then be provided to SBUK to guide and strengthen their treatment development program.

It’s a big challenge for this tiny outfit. But it could also be the deal that showcases the kind of value Emerald can provide.

Operating not just as any old pot stock, but as a clinically recognised service. Helping not only businesses achieve the outcomes they’re after, but also patients.

Fortunately for Emerald, it will also deliver some much-needed income.

All up the total contract is worth roughly $723,000. With Emerald set to collect $270,000 upfront.

It will be fascinating to see what comes of this deal. The first of what may be a very lucrative and productive partnership.

Time will tell.

A sea of possibilities

More than anything, Emerald’s performance today is another reminder of the exuberant small-cap market right now.

It has been truly incredible to see the amount of tiny stocks breaking out lately. Delivering some eye-popping gains on a day-to-day basis. All while the S&P 200 continues to trade sideways for the most part.

For investors looking to take a punt, now has never been a better time. With plenty of opportunity to be found across a wide range of sectors. Not just the likes of pot stocks.

Take lithium, for example, another favourite for the speculative crowd.

It is a sector that up until recently has been pretty damn flat. With much of the industry languishing in the wake of weak prices.

Now though, we may have reached a turning point. A story that you can follow in our latest report, right here.

However, we realise lithium isn’t going to be everyone’s cup of tea. The same way that pot stocks may not sit right with all investors.

Right now though, it doesn’t matter where you look, there are a ton of great small-cap plays. And if you want to hear all about them on a regular basis, then sign up for our newsletter here.

We’ll bring you stories and insight that you won’t find anywhere else. Especially when it comes to small-caps…

Regards,

Ryan Clarkson-Ledward,
For Money Morning


Ryan Clarkson-Ledward is one of Money Morning’s analysts.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities.

You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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