Cannasouth Ltd [NZX:CBD] has benefited from bullish trading today, experiencing a sharp jump of 13.46%.
Cannasouth is a biopharmaceutical company that specialises researching and developing medicinal cannabis. It is the first of its kind to list on the New Zealand Stock Exchange.
At the time of writing, Cannasouth has a market capitalisation of $47 million, and the share price sits at $0.59.
Why has the [NZX:CBD] share price increased today?
The market sentiment was enthusiastic today when Cannasouth released a positive statement that bode well for the future of the company.
Here are some key takeaways:
- Cannasouth has experienced has strong growth in investment —boosting its shareholder base from 1450 to over 2000 since its IPO.
- Cannasouth has made a submission to the New Zealand government, calling for additional support to the Medicinal Cannabis Scheme. If successful, this could open up fresh doors for business expansion .
Naturally enough, these developments have been received warmly by investors, driving a higher demand for Cannasouth shares.
Where could [NZX:CBD] go from here?
Cannasouth remains a small-cap stock with significant risk and speculation involved.
However, if the New Zealand government accepts Cannasouth’s proposal for more flexible medicinal cannabis regulation, this will almost certainly boost Cannasouth prospects for growth.
No one has a crystal ball at this point. It’s still a case of wait and see.