Why Invest In ASX Cannabis Stocks - Opportunities & Benefits
Cannabis cultivation and distribution for medical and research purposes has been legal in Australia since 2016. Recreational use is far more legally restricted in Australia. The landscape for legalisation of the recreational use of cannabis may change over time, with the Greens indicating interest in legalising recreational use on a federal level. However, for now, only the Australian Capital Territory allows for legal recreational use and possession of cannabis.
Significant regulations surround the growth, production, and manufacture of cannabis in Australia. A licence is required for these activities, and an individual must show, amongst other things, that they are a fit and proper person and provide site and security details. There is no limit to the number of licences that can be issued, but not all applications are granted. A decision on a licence takes approximately nine months.
Once a licence has been granted, a permit is required for manufacturing cannabis products, and a separate permit is required for cultivating and producing cannabis. All permit holders must report quarterly to the Office of Drug Control. Despite the regulations surrounding this industry, it has grown by over 100% in the last five years to reach an estimated $350.0m in 2024. This is expected to grow over the next nine years, with a CAGR of 30% between now and 2033.
So, while this market is regulated, and there are several hurdles Australian cannabis companies must overcome on a regulatory basis before a
cannabis stock can be listed on the ASX, significant growth is expected in the coming years. The acceptance of cannabis for medical uses, as well as an increasing number of applications for cannabis in medicine, will drive this growth. There is also likely to be significant growth if recreational cannabis use becomes legalised.
There are a range of Australian cannabis stocks on the ASX. Some of these stocks include:
- Vitura Health Limited (ASX:VIT)
- Zelira Therapeutics (ASX:ZLD)
- Althea Group Holdings (ASX:AGH)
- Cann Group (ASX: CAN)
- Bioxyne (ASX:BXN)
- Neurotech International (ASX:NTI)
Virtua Health Limited (ASX:VIT)
Virtua Health Limited, formerly Cronos Australia, manufactures medical marijuana products. It has also developed a comprehensive national distribution network for the sale and distribution of medicinal cannabis and other products, which forms a digital health platform.
Source: TradingView
Zelira Therapetics (ASX:ZLD)
Zelira Therapeutics Limited is a global biopharmaceutical company focused on researching, developing, and commercialising clinically validated cannabinoid-based medicines. It targets fast-growing medical cannabis markets and has several treatments in the pipeline for rollout in several countries.
Source: TradingView
Althea Group Holdings (ASX:AGH)
Althea Group Holdings produces and distributes cannabis products globally. It holds several Australian licenses and permits for the importation, cultivation, production and supply of medicinal cannabis. Globally, Althea focuses not only on medical cannabis products but also on recreational products where these are legal.
Source: TradingView
Cann Group (ASX:CAN)
Cann Group breeds, cultivates, and produces cannabis products. It is an agricultural technology company that has built a state-of-the-art, end-to-end breeding, cultivating and production facility in Mildura. Cann Group also owns a patent-protected capsule technology through Satipharm.
Watch our webinar with Cann Group CEO Peter Crock.
Source: TradingView
Bioxyne (ASX:BXN)
Bioxyne Ltd is an Australian life science and health products company. It develops, manufactures, and distributes consumer dietary supplements, including cannabis products. Bioxyne is listed as a stock to watch as it recently produced the first Australian cannabis gummies.
Source: TradingView
Neurotech International (ASX: NTI)
Neutotech International is a clinical-stage biopharmaceutical development company focusing on developing treatments for neurological disorders in children. Neurotech has developed a novel compound, NTI164, for the treatment of Autism Spectrum Disorder in children.
Source: TradingView
Understanding The Risks & Considerations Of ASX Cannabis Stocks
Several financial metrics should be used as the basis for considering investing in an ASX cannabis stock. These include company fundamentals, market trends, regulatory status and potential changes, and developments in research on the effectiveness and applications of medical cannabis.
Company fundamentals that should be considered include revenue, debt-to-equity ratio, profitability, and cash flow. These fundamentals can change over time, so it is important to research them regularly if you are considering buying into, holding, or selling cannabis stocks.
The information presented on this site is valid when writing; as with any stocks, the position of cannabis stocks can change. This is especially the case in a highly regulated market. If recreational cannabis use were legalised in Australia, this would likely have a positive effect on cannabis stocks, as would evidence of wider medical applications of cannabis. If there were to be a tightening of regulations for cannabis cultivation, production and distribution, or negative evidence were produced on the the effectiveness of cannabis in medical applications, this would negatively affect the price.
Therefore, it is important to stay informed and conduct thorough research on cannabis stocks before deciding to buy or hold them.
How Sharewise Helps You Choose the Best Cannabis Stocks.
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Investment Tips For Cannabis Stocks
Diversifying your investments across different sectors and asset types can minimise risk and enhance potential returns. Cannabis stocks, a relatively new and growing type of stock, can add another measure of diversity to your stock portfolio. As with any stock, it is important to consider which cannabis stocks make the best addition to your portfolio and how they fit into the distribution of stocks across your portfolio.
Investors should regularly review their portfolios in the context of the changing market conditions and individual market goals. As things change, buying or selling stocks to keep your portfolio balanced and shaped to meet your financial goals may be best.

However, your portfolio evaluation must use a long-term investment approach. Some market volatility can impact your overall portfolio more significantly if you are overly reactive to that volatility. Being patient and waiting for the long-term outcomes of stocks to be realised is important when you are confident in a stock's company fundamentals and long-term prospects.
At Sharewise, we understand the doing all the research and keeping on top of all the information on the stock market is a challenge. We take this work out of it by doing this research for you. This enables us to guide you on how to minimise your investment risk and maximise your returns. You can join Sharewise by contacting us through our
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