Shareholders in many of the cannabis companies to have listed on the Australian sharemarket in recent years are licking their wounds after the initial euphoria surrounding medical cannabis gives way to disappointment. Cannabis has been one of the hottest sectors of the market, after rapid growth in consumption of medicinal cannabis and legalisation of its recreational use in some parts of the world. The local industry started to gather steam after the government legalised patient access to Australian-grown and manufactured medicinal cannabis in 2016. The sector last year received a further boost when Australia lifted legal restrictions on the export of medical cannabis. That sent share prices sky high as day traders and short-term investors looked to cash in on the action. Dozen of cannabis companies – from cultivators to those developing medical cannabis – raised capital by conducting initial public offerings on the Australian Securities Exchange. Their shares initially made stellar gains for those who invested in the companies. However, the share prices of most of the companies in the sector have since dived. Many do [...]