Shares in Value Logo
Product Review Img Vertical

Date : 27/03/2023

3 ASX Cannabis Stocks That Have The Potential Of Giving Investors High Returns

ASX cannabis stocks refer to owning shares of companies that cultivate, distribute, and sell cannabis and its derivatives, with a primary focus on medical cannabis. In Australia, the legal cultivation of cannabis for scientific and medical purposes was approved in 2016. The Greens’ recent proposal to legalise marijuana nationally could offer a substantial potential revenue boost for cannabis stocks.

While recreational use and possession of cannabis are still illegal under federal law, the Australian Capital Territory is the only region that permits adults to possess marijuana for personal use. As a result, the legal cannabis market in Australia is relatively small, with estimated revenue of US$385 million projected for 2023. Nevertheless, experts anticipate significant growth in the Australian cannabis stocks market, with a potential CAGR of over 30%. With further positive changes in legislation, the growth rate of cannabis stocks could increase even more over the next decade.

Why ASX Cannabis Stocks are a Lucrative Option for Investors?

Investing in cannabis stocks ASX listed means jumping into the rapidly growing Australian legal cannabis sector. The industry is still in its infancy, making ASX cannabis stocks mainly speculative investments. This type of investment appeals to risk-tolerant investors who seek high-growth shares in their portfolios.

However, for those who feel uneasy about the ups and downs of investing, buying cannabis stock may not be the best choice. They are known for their volatility, with many ASX cannabis stocks experiencing significant losses in 2022. Vitura Health shares fell by approximately 50% from the end of 2021 to the start of 2023, while Incannex Healthcare shares decreased by about 75% between early 2022 and early 2023.

Prices in the legal cannabis industry are difficult to anticipate since the sector is still in its infancy. For instance, the cannabis sector in North America would have significantly benefited from Canada’s decision to legalise recreational marijuana usage. Yet, as a result of an oversupply, cannabis prices have dropped, resulting in slower-than-anticipated expansion by local businesses.

Investors confident in the global cannabis industry’s long-term potential may easily disregard these temporary shifts in the market. On the other hand, blue-chip companies may be a better choice than cannabis stocks for investors who want greater assurance in their portfolio’s near-term worth.

To invest in cannabis ASX shares with high returns, here are the top 3 ASX cannabis stocks that have expected growth potential:

Vitura Health Ltd (ASX: VIT)

Vitura Health Ltd (ASX VIT) is an ASX-listed company that operates in the medical cannabis sector, and one of the top 3 ASX cannabis stocks to invest in. The company is focused on researching, developing, and commercialising cannabis-based pharmaceutical products to treat various medical conditions. VIT’s products include capsules, oral sprays, and sublingual drops. The company has partnerships with local and international research organisations. It is focused on conducting clinical trials to demonstrate the efficacy and safety of its products.

It was formerly known as Cronos Australia Ltd (ASX: CAU), but in February 2023, the firm officially changed its name to Vitura Health Ltd. After merging with CDA Health Pty Ltd (CDA) in late 2021, the firm realised the need to rebrand to better represent its future goals. CDA presently runs two companies as a wholly owned subsidiary of Vitura:

CanView, operated by Burleigh Heads Cannabis, sells and distributes 200 product stock-keeping units (SKUs) from 30 foreign and local medical cannabis companies in Australia.

CDA Clinics provides countrywide telehealth consultations to people seeking medical cannabis.

Cannadoc Health Pty Ltd is a medical cannabis clinic providing telemedicine consultations throughout Australia. Vitura owns 75.5% of the company.

Vitura Health Ltd shares ASX VIT cannabis stocks trend on tradingview

Incannex Healthcare Ltd (ASX: IHL)

Incannex Healthcare Ltd (ASX: IHL) is another cannabis stock that have the potential of giving investors high returns. Incannex is an Australian biotech company focused on developing cannabinoid-based medicines for various conditions. The company is developing a range of products, including an inhaler for treating obstructive sleep apnea and a formulation for treating traumatic brain injury. In addition, Incannex is working on developing therapies for conditions such as epilepsy, anxiety, and depression. The company has a robust intellectual property portfolio, which includes patents related to the use of cannabinoids in the treatment of various diseases.

Incannex is a company that has captured the attention of many thanks to the broad appeal of its treatments and the massive market potential they offer. It’s an exciting time to be following their progress as ASX listed cannabis stocks. Yet, it’s essential to acknowledge that all of their projects are currently in the clinical trial stage. During this crucial period, their treatments are tested to ensure their safety and effectiveness. While there have been some encouraging developments, it will likely be some time before these treatments can be made available to the public, as the regulatory process can be long and arduous. But for those who are patient and understand the importance of thorough testing, the future looks bright for Incannex and its innovative product pipeline.

incannex healthcare ltd asx ihl cannabis stocks trend on tradingview

Cann Group Ltd (ASX: CAN)

Cann Group Ltd (ASX: CAN) is a leading player in the medicinal cannabis industry, primarily focusing on breeding, cultivating, manufacturing, and distributing high-quality cannabis products for medical use within Australia and approved international markets. Their cutting-edge research, cultivation, and manufacturing facilities in Melbourne and near Mildura are at the forefront of this exciting industry.

Their unwavering objective is to provide safe and effective medicinal cannabis for various diseases and medical conditions. To achieve this, Cann Group Ltd (ASX CAN) has invested significantly in its plant breeding program, utilising the latest agricultural science to develop new, resilient genetic strains capable of producing high yields while maintaining superior quality.

Furthermore, the company has committed to constructing a state-of-the-art facility near Mildura that sets the industry standard in delivering high-quality, high-volume, and cost-effective products. These strategic investments demonstrate Cann Group’s forward-thinking approach to meeting the market’s evolving needs.

As a result, Cann Group shares are perfectly positioned to significantly impact the medicinal cannabis industry. With their emphasis on quality, safety, and innovation, the ASX CAN cannabis stocks are poised to deliver results that exceed expectations in the future.

asx can cann group ltd cannabis stocks trend on tradingview

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!


Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top


By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.