At the time of writing the share price of Althea Group Holdings Ltd [ASX:AGH] is up nearly 10%, to trade at 63.5 cents.
Since the March market lows, the AGH share price has since gone on a significant run over the last two weeks:
There are two things working in favour of the AGH share price at the moment.
Canadian licence boosts AGH share price
In today’s announcement, their Peak Processing Solutions subsidiary got the go ahead from Health Canada — so their operations can immediately commence.
In particular, Peak is focused on infused beverages.
So, a significant boon for Althea in a massive market.
Secondly, another recent announcement from the company welcomed a change of TGA policy with regards to CBD products in Australia.
Meaning that in consultation with a pharmacist, Australian patients will be able to get CBD without a prescription.
It’s an interim decision, but it I think it will materially impact Althea’s revenue in the coming quarters, as it is very focused on the fledgling Australian market.
Outlook for AGH share price
Althea went on an immense run in mid-2019 but was savaged by a broader trend in cannabis stocks globally.
With limited revenues many of these companies sold off despite the significant long-term potential.
It’s quite possible that March was the bottom for the AGH share price and future positive news flow could drive AGH higher.
It will be interesting to see the next quarterly now that Peak is up and running.
For Money Morning