Pot stock in another soaring session
Shares in newly listed medical marijuana play PhytoTech Medical have extended their astonishing run today since listing yesterday.
After doubling its 20-cent issue price on its ASX debut yesterday to close at 42 cents, the stock more than doubled again this morning to hit 92 cents.
At 12.15pm, the company's shares had come off their intraday peak but were still up 38 cents, or 90.48 per cent for the day, at 80 cents.
More than 32 million shares had changed hands worth nearly $23 million.
The strong start could see its founders - Perth company promoter Ross Smith and managing director Boaz Wachtel - score an early award of one million performance rights each if the stock's average price stays above 40� for five consecutive days in the next two years.
The pair are in line for a further one million performance rights bonus if the company's price stays above 60 cents for five consecutive days in the next three years.
The now Israel-based Mr Smith said yesterday the first-day trading had seen professional investors buy relatively cheap shares from "weak" stag profit-takers.
"I believe that we will look back in 12 months time and PhytoTech will be the best-performing ASX-listed stock," he said. "There's a new sheriff in town, called medical cannabis."
PhytoTech raised $5.9 million in the float. The company has a research and licensing deal with an Israeli technology developer to commercialise medical-grade cannabis for global markets.
It also plans to grow proprietary strains of the plant in California, Uruguay and elsewhere.
Chairman Peter Wall conceded the novelty of PhytoTech being the first of its kind to list on the Australian Securities Exchange had sparked investor interest.
"There's no doubt that some of the trading would have to do with the fact that it's different," he said.
"It's not gone out of control. It's come on at a healthy premium with good volume.
"We've got a very good team together and a business model that I think is going to be successful based on what we've done to date in a very short time span and also what's on the horizon."
Mr Wall said PhytoTech would soon be making some key appointments, including an Israel-based chief executive.
Mr Smith and Mr Wachtel are eligible for up to 7.5 million performance rights each and Mr Wall 3 million, relating to the share price or obtaining patents and licensing agreements.
