The Best ASX Cannabis Stocks to Buy

On 17 October 2018, Canada became the largest country in the world to legalise regulated adult-use (recreational) cannabis. Uruguay holds the title of the world’s first, legalising regulated adult-use cannabis in 2013.

Cannabis laws continue to evolve globally. In Australia, cannabis was legalised for medicinal purposes in 2016, and the export of medicinal cannabis products was legalised in February 2018 under the Commonwealth licensing and permit framework.

Adult-use cannabis remains illegal nationally in Australia, although the ACT allows limited personal possession and home growing; however, sale and supply remain illegal.

The investing world responded quickly once adult-use regulations began disappearing around the world, with hopes the U.S. would follow Canada’s lead at the federal level. It still hasn’t, but adult-use cannabis is legal in 24 U.S. states (plus Washington, D.C., and some U.S. territories), while many more allow medical access.

Two of the top contenders for the title of “best marijuana stock” during the early boom both had supply arrangements with Australian cannabis growers; Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB). Along with other producers too numerous to mention, the cannabis bubble burst, and investor enthusiasm for anything remotely connected to the sector cooled sharply.

Comparison snapshot (ASX stocks covered in this post)

ASX cannabis stocks snapshot (as of March 2026)

Why the early cannabis boom collapsed

There were a variety of factors behind the early collapse, not the least of which was the failure of federal marijuana approval in the U.S. to follow Canada’s lead. Canadian cannabis producers ramped up production in anticipation of demand levels that proved unsustainable, while investors and analysts exaggerated the profit potential of the recreational market.

Three issues became obvious in hindsight:

1) Distribution
Distribution systems differed province to province — some controlled by government outlets, others private — and the rollout created bottlenecks. In the early years there simply weren’t enough effective distribution points.

2) Oversupply
Production ramped faster than real demand, with some growers shutting down facilities within a year.

3) Taxation and pricing
Taxes and compliance costs lifted legal prices, in many cases narrowing the gap with illegal dispensaries and limiting the speed of conversion to legal channels.

Medical cannabis is the more durable theme

Since the Commonwealth created a regulated licensing pathway for medicinal cannabis cultivation and production in 2016, Australian regulators have granted licences for cultivation and manufacturing under strict rules. Export permits became available after the export framework was legalised in February 2018.

That’s why, for Australian investors, the “best” ASX cannabis stocks (if any) are usually those tied to:

• revenue-generating medical cannabis distribution and services; and/or

• late-stage clinical programs with credible regulatory traction.

Cannabis stocks remain highly speculative. Many are small-cap names with limited liquidity and frequent capital raising risk.

Market outlook (updated growth forecasts)

Despite sector volatility, multiple research firms still forecast strong multi-year growth for legal cannabis markets:

• Grand View Research estimates the global legal marijuana market will grow at a CAGR of ~25.7% from 2024 to 2030.

• Expert Market Research estimates global medical cannabis growth around ~24% CAGR over its forecast period.

• Fortune Business Insights is more optimistic, citing a 34.03% CAGR over its 2026–2034 forecast window.

Forecasts vary by definition and methodology, but the direction is consistent: growth is expected, even if listed equities remain volatile.

As the trading year 2024 ended, we looked at five “best-of-breed” cannabis stocks on the ASX. This is a refreshed update for 2026. In the near term, most cannabis names have struggled to deliver consistent price appreciation, largely due to sector scepticism, earnings volatility, and capital raising cycles.

Below are the three companies that remain, what they do, and what investors should watch.

Neurotech International (ASX: NTI)

Like many of the “best of breed” ASX cannabis-linked stocks, Neurotech’s scope extends beyond traditional medical cannabis distribution. Neurotech is primarily a clinical-stage biotechnology company focused on cannabinoid-based therapies.

The company’s key program centres on its novel compound NTI164, with development aimed at paediatric neurological conditions including Autism Spectrum Disorder (ASD) and Rett syndrome. Medical cannabinoid compounds typically use low levels of THC. Neurotech’s approach combines multiple cannabinoid components with low THC levels.

Working in conjunction with Monash Children’s Hospital, Neurotech has previously reported early-stage study results showing symptom improvement in a high percentage of participants with no major safety or tolerability issues.

Regulatory / trial momentum (refreshed):

• Neurotech has continued reporting trial updates, and has highlighted U.S. FDA designations supporting development pathways for paediatric conditions (including Rett syndrome).

• As with most pre-revenue biotech companies, funding risk remains material.

What investors should watch:

• trial readouts and regulatory milestones

• cash burn and quarterly funding runway

• option exercises / placements that can pressure the share price

Vitura Health (ASX: VIT)

In February 2023 Cronos Australia changed its name to Vitura Health, highlighting its independence from its former relationship with Canada’s Cronos Group.

Vitura positions itself as a digital health operator linking the medical cannabis ecosystem — patients, doctors, pharmacists, and suppliers — with products channelled through its platform.

The company’s brands include (as previously outlined):

• Canview (online prescribing and distribution ecosystem)

• CDA Clinics (clinic network)

• Cannadoc (telehealth services)

• Burleigh Heads Cannabis (BHC) (product distribution through Canview)

• Adaya (plant-based medication range)

Updated financial context (keep the story, refresh the facts):
Vitura has historically stood out because it achieved profitability earlier than many ASX peers and paid dividends. More recently, investors have been weighing revenue strength against margin pressure and earnings variability as the business evolves.

What investors should watch:

• patient volumes and repeat prescribing trends

• unit economics / margin stability

• whether earnings normalise as strategy initiatives mature

Cann Group (ASX: CAN)

Cann Group has been around since 2014 and was among the first ASX cannabis companies to secure Australian licences aligned with the medicinal cannabis framework.

Cann has positioned itself as a cultivation/manufacturing and supply player, with investments into end-to-end production capability and product development.

While Cann has reported periods of improving operational metrics, investors have remained cautious due to:

• recurring losses (or volatile earnings quality),

• revenue pressure in competitive markets, and

• ongoing funding/structure risk typical of micro caps.

What investors should watch:

• whether revenue stabilises or resumes growth

• progress on cost control and recurring gross margins

• financing structure and dilution risk

Removed – Zelira Therapeutics (ASX: ZLD)

Zelira describes itself as a global biopharmaceutical company targeting multiple medical cannabis markets, including prescription treatments for conditions such as insomnia and chronic pain, alongside broader product ambitions over time.

Important update (March 2026):
Zelira’s securities were suspended from quotation in early March 2026 under ASX Listing Rule 17.5 due to a periodic reporting deadline issue. Suspension events materially increase risk and reduce liquidity, so investors should treat this as a major change to the risk profile.

Even when operations and trials remain in progress, suspension and compliance events can dominate the share price narrative.

The Bottom Line

Towards the end of the second decade of the twenty-first century, investors worldwide eagerly awaited the “next big thing” in cannabis equities. The reality is that cannabis stocks have remained a high-risk corner of the market, even as legal sales and medical adoption continue expanding.

For investors looking at ASX cannabis stocks today, the best candidates tend to be:

• revenue-producing ecosystem businesses in medicinal cannabis, and/or

• clinical-stage programs with credible trial progress and regulatory traction — while recognising dilution risk.

FAQs

Where is Cannabis Legal?

Cannabis laws vary widely. Canada legalised regulated adult-use cannabis nationally in 2018. In the U.S., adult-use cannabis is legal in 24 states (plus D.C. and some territories), while many more allow medical access. Australia permits medicinal cannabis under a regulated framework, but adult-use remains illegal nationally (with limited ACT personal-use allowances).

How Do You Invest in Cannabis?

The primary way of investing in cannabis is to buy shares in companies involved in cultivation, manufacturing, distribution, and medical research. Alternatively, investors can consider cannabis ETFs (where available), which provide diversified exposure across multiple cannabis-linked companies.

How Do You Buy Cannabis Stocks?

Shares in cannabis companies can be bought and sold through any regulated broker. Investors should research how each cannabis business model works (producer vs distributor vs clinical biotech), and avoid risking more than they can afford to lose given the sector’s volatility.