Australian medical marijuana company Phytoech has become the first medical-grade cannabis company to list on the ASX.
Taking advantage of the burgeoning medical cannabis market, the company raised $5.9 million at $0.20 per share.
The shares closed the day at $0.42, more than double the issue price.
Peter Wall, chairman of Phytotech, said: “Medical cannabis is fast becoming accepted as a treatment for a variety of medical conditions around the world and the success today is an encouraging sign that investors have confidence in our strategy, technology and business model.”
Phytotech’s goal is to supply medical grade cannabis-based therapeutics products to the fast growing international market, under regulated medical cannabis legislation.
The company will use marijuana grown in California and Uruguay to develop medical products in Israel to be sold in Israel, Europe, the United States and Canada.
Australia will also be a market if medical marijuana is legalised.
In addition, Phytotech’s wants to develop and advocate the health benefits of cannabinoids in oral preparations, vapour form, and other safe and effective ways.
The IPO was delayed last December after the ASX queried the legality of the business.