Algae Tec Ltd’s (ASX:AEB) two day 110% share price increase could be attributed to a decision by the Australian Federal Government permitting producers of medicinal cannabis to export to overseas markets.
The federal government has approved the exportation of medicinal cannabis in a bid to strengthen supply amid growing demand domestically and worldwide.
The decision to allow exports is expected to lead to further investment in the Australian industry, providing local companies with an incentive to accelerate their development plans.
Algae Tec’s share price rally followed similar gains by industry peers over the last two days.
Algae Tec negotiates license agreement ahead of export legislation
It was only in December that Algae Tec negotiated a license to establish a breeding program aimed at identifying cultivars for use in cannabinoid product development.
The company is targeting the stock and veterinary medication, supplement and therapeutics industries, which could see it exporting to overseas markets.
Algae Tec is aiming to be actively developing medical cannabis products for animal use in 2018 with a view to supplying global markets in the near term.
Creso Pharma (ASX:CPH) is also positioned to distribute medicinal cannabis to the veterinary industry, and its shares have rallied 22% over the last two days.