Cann Global has described its first half performance as “exciting” despite revenues falling and losses rising during the period. The company, the subject of media scrutiny following controversy surrounding its commercial relationships, reported a 56% drop in revenues to A$393,500.
It blamed the decline on reduced sales at its food division during a product and brand review, while accounting changes over revenue received from its Cann Global Thailand subsidiary also impacted the result.
Meanwhile, losses grew 19% to $2.4m which it attributed to the $312,000 one-off liability payment to former executive chair Phina Feldman. Excluding the payment, losses were largely in line with the previous corresponding period, the company said.
Managing director Sholom Feldman said new revenue streams launched in the first half, including its Instacann medicinal cannabis products in collaboration with JV partner Canntab, will help drive growth.
“While it will take time for revenue from the new initiatives to build momentum, we are excited by the progress made,” he said.
“In the first half of this financial year we have imported two shipments of Instacann products and started our marketing campaigns targeting GPs within the TGA regulations.”
Feldman said generating revenue from the prescription products will take time.
“However, the Canntab products are being received positively by GPs and our efforts are focused on building trust which will drive growth in sales,” he added.
“There is genuine interest for these products across the medical industry.”
Cann Global also launched its cosmetic brand Fuss Pot, while a new range of health food products under the brand Grass Roots will be rolled out this quarter.
While operating expenses were cut by 24%, the company warned costs will increase as growth strategies are progressed.
ASX-listed Incannex has made its debut on the Nasdaq with managing director and CEO Joel Latham and chairman Troy Valentine invited to ring the closing bell at the Nasdaq MarketSite in Times Square, New York last week.
The move comes after the US Securities and Exchange Commission (SEC) declared the company’s registration statement effective, and after formal approval from Nasdaq on meeting the listing requirements.
The company initially planned to list in January, but had to address a number of questions from the SEC first. With cash reserves of $19.77 million as at December 31, 2021, it was able to do so without an associated capital raise in the US.
Each Nasdaq share, trading under the ticker IXHL, will represent 25 ordinary Incannex shares.
Creso Pharma’s wholly-owned Canadian psychedelics subsidiary Halucenex Life Sciences has been granted authorisation from Health Canada for a phase II clinical trial testing the efficacy of psilocybin on treatment-resistant post-traumatic stress disorder (PTSD).
The move follows an initial submission from Halucenex which outlined trial objectives, design protocols and supporting data and was approved after a 30-day review process by the regulator.
Halucenex said it will immediately progress with patient recruitment, leveraging its established relationships with veterans affairs groups across Canada. Up to 20 participants over the age of 19 and suffering from treatment-resistant PTSD will be enrolled in the trial, which the company expects to commence during Q2 2022..
Halucenex president, CEO and founder Bill Fleming said: “Given our longstanding relationships with a number of veterans affairs groups and the prevalence of treatment-resistant PTSD across North America, we anticipate that this will be a seamless process.”
NZX-listed Rua Bioscience has reported a loss after tax for the six months to December 31, 2021 of NZ$2.46m, with cash and investments on hand of $12.29m.
Chief financial officer Hamish White said the result was in line with expectations.
“The company’s investment focus was on those areas that will deliver revenue, investing in new product development and selecting long-term opportunities across the medicinal cannabis value chain,” he added.
Rua said H2 2022 promised to be “transformational” for the firm as it focuses on driving domestic and global sales, with the first Rua-branded products expected to be available for prescribers in New Zealand in late-March or early April.
Avecho has started patient dosing for its Phase IIa study testing the efficacy of topically applied CBD in relieving symptoms of osteoarthritis.
The study will use Avecho’s proprietary TPM technology to deliver a topical CBD gel formulation to painful joints on patients over a four-week period, with 15 having now successfully completed baseline assessment and commenced treatment.
Assessment will include pain and functional scores, and measurement of grip strength using a dynamometer.
Avecho CEO Dr Paul Gavin said: “Osteoarthritis is a chronic and poorly managed pain condition, with limited treatment options available.
“Increasingly, CBD is being prescribed for a range of pain conditions, despite a relative absence of formal human clinical trials demonstrating its effectiveness. Commencement of patient dosing is an important milestone in our ongoing efforts to understand and quantify how it could help.”
Around 50% of all women and 25% of all men will experience osteoarthritis of the hand by the time they reach 85.
InhaleRx recorded revenue of A$167,301 from sales of its Medihale vaping devices and pods in 2021, up from $12,557 in the previous year, according to preliminary financial results.
Losses for the consolidated entity after income tax and non-controlling interests reduced by 7.8% year on year to $1.11 million.
The firm said a renewed focus on business development has generated interest from potential white-label partners in Australia and New Zealand.
It has also applied for wholesale and import/export licences to allow it to source and supply medicinal cannabis medications and market them for use in its Medihale devices.
New Zealand firm Greenfern Industries is about to start writing clinical trial protocols for a low-dose CBD medication targeting anxiety with a view to getting it registered as a Schedule 3 medicine in Australia.
Managing director Dan Casey said the group may migrate to the pharmacy channel once low-dose CBD products become available over the counter in Australia.
He added: “Speed to market is important because the first products to hit the pharmacy-only market will take a considerable share.
“We’re excited to be continuing on this pathway to get a registered CBD product on the shelves in Australia. We can then look at possible pathways for this product to benefit the patients of New Zealand.”
MGC Pharma’s half-year revenue from ordinary activities to December 31, 2021 rose by 246% to almost A$2.6 million compared to the previous corresponding period.
Cannabinoid product sales totalled $1.25m for the six months, while sales of the company’s Covid-19 supplement ArtemiC hit A$1.06m. Losses for the period stood at $7.6m.