- The Cohen Group has decided to leave its Israeli joint venture agreement with Creso Pharma (CPH)
- In 2018, the companies decided to established a joint venture (JV) to grow medicinal cannabis in Israel
- For some time, the parties have been negotiating Cohen’s responsibilities and entitlements
- However, the parties could not come to formal agreements and so the Cohen Group has decided to terminate the agreement
- It also told the company it will be seeking damages of alleged breaches despite Creso strongly disputing this
- On market close, Creso is down 6.98 per cent and is trading at 8¢ per share
Creso Pharma (CPH) has received a letter of termination from the Cohen Group for its Israeli joint venture agreements.
The joint venture agreements are between its subsidiary, Creso Pharma Switzerland GmbH and the Cohen Group (Cohen Propagation Nurseries and Asaf Cohen).
In 2018, the companies decided to established a joint venture (JV) to grow medicinal cannabis in Israel.
For some time, the parties have been negotiating the responsibilities and entitlements of the Cohen Group under the JV agreements.
Although the JV is still in the relatively early stages and business operations have not yet taken place, the parties have not been able to agree on a resolution. This has led to the termination by the Cohen Group.
The Cohen Group has also told the company it will be seeking damages of alleged breaches. Creso has disputed this and will strongly defend these claims.
“The company is also assessing counterclaims against Cohen Group, including with respect to the lack of good faith of the notice of termination,” the company said.
On market close, Creso is down 6.98 per cent and is trading at 8¢ per share.