Althea Share Price Surge Continues | ASX:AGH

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:

Althea share price

Source: tradingview.com

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.

Regards,

Lachlann Tierney,
For Money Morning

PS: Four Well-Positioned Small-Cap Stocks: These innovative Aussie companies are well placed to capitalise on post-lockdown megatrends. Click here to learn more.


Lachlann Tierney is a writer for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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