The top performing OC Micro-Cap Fund has said cashed-up Cann Group Ltd (ASX:CAN) has “myriad opportunities” in the fast developing medical cannabis industry, saying the company has “a clear path to profitability.”

Writing in its most recent fund update, OC Micro-Cap said they believe CAN is well positioned to continue its rapid growth over the medium to long term.

This comes after the Cann Group share price had a strong April, CAN shares rising 20 per cent for the month on the back of continued corporate news flow and some takeover speculation in the media.

Cann Group is building a world-class business focused on breeding, cultivating and manufacturing medicinal cannabis for sale and use within Australia and internationally (once exports are permitted).

It was issued with Australia’s first medicinal cannabis research licence in February 2017, in addition to Australia’s first medicinal cannabis cultivation licence in March 2017. Aurora Cannabis Inc – one of Canada’s largest listed medicinal cannabis companies – is a cornerstone investor in Cann, with a 22.9% shareholding.

OC Micro-Cap Fund said it believes CAN is well positioned to continue its rapid growth over the medium to long term. Although the company is not yet generating any revenue, as at the end of March it had $82 million in cash.

Cann share price up 600 per cent

The Cann Group share price has jumped more than 600 per cent higher in the last 12 months, making it one of the top performing ASX stocks in that period. In March, Cann was added to the S&P ASX All Ordinaries Index.

In late April, responding to media speculation, Cann Group said it had not received any proposal for a takeover bid from major shareholder Aurora. It did however confirm it had very preliminary and confidential discussions with Aurora in relation to a potential transaction, saying there is no certainty that any formal offer or transaction will eventuate.