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- Creso Pharma (CPH) has entered a distribution agreement with Pakistani nutritional supplements company Route2 Pharm
- Per the agreement, Route2 will import, market, distribute, and sell Creso’s hemp-derived therapeutic products exclusively in Pakistan and the Philippines
- Route2 may also sell the company’s goods non-exclusively in other potential target markets throughout Asia
- The companies hope to achieve up to $2.48 million in minimum orders in the contract’s first year
- Creso Pharma is up 4.44 per cent and trading at 24 cents per share
Creso Pharma (CPH) has entered a distribution agreement with Pakistani nutritional supplements company Route2 Pharm.
Under the terms of the agreement, Route2 will import, market, distribute and sell Creso’s hemp-derived therapeutic products, including the company’s CannaQix 10, Cannaqix 50, and CannaDOL product lines.
Route2 will sell Creso’s products exclusively in Pakistan and the Philippines, following the Pakistani Government’s landmark decision in September to enter the cannabidiol (CBD) market.
Route2 may also sell the goods non-exclusively in other potential target markets throughout Asia, namely Afghanistan, Azerbaijan, Bangladesh, Cambodia, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.
Under the terms of the three-year agreement, Route2 will have exclusivity rights over Creso’s cannaQIX and cannaDOL product lines in the Exclusive Territories of Pakistan and the Philippines. However, this is subject to Route2 achieving minimum order quantities for each product line in the contract’s first year.
Combined, the minimum order quantities for the contract’s first year amount to $2,482,037. For the second and third years of the contract, Creso and Route2 will negotiate in good faith to set new minimum sales targets.
If the minimum order quantities are not realised within any contractual year, Creso has the right to terminate the agreement with Route2.
Creso Pharma’s Non-executive Chairman, Adam Blumenthal, said the agreement could take the company into markets with a combined population of over 750 million people.
“Our mission is to deliver access to affordable, high-quality, broad spectrum, GMP products for the betterment of people’s lives everywhere,” he said.
“We’re delighted to conclude this important partnership, through which we hope to provide the opportunity for millions of people to have access to our innovative products,” he added.
Creso Pharma is up 4.44 per cent, trading at 24 cents per share at 10:52 am AEDT.
