Join our daily newsletter At The Bell to receive exclusive market insights
- Creso Pharma (CPH) is looking to land on another US exchange after terminating its proposed merger with Red Light Holland
- Creso says the merger is no longer in shareholder’s best interests and would be forgoing its planned listing on the Canadian Securities Exchange
- The CSE listing was set to take place as part of its merger with Red Light Holland, which was announced in June
- The company says the move will grant it access to “the world’s largest recreational cannabis market”
- Creso Pharma shares are up 12.5 per cent at 3:52 pm AEST to trade at 13.5 cents
Creso Pharma (CPH) is looking to land on another US exchange after terminating its proposed merger with Red Light Holland.
Creso said the companies concluded the merger would “no longer be in the best interests of their respective shareholders” and that Creso would instead shift its focus towards a proposed NASDAQ dual listing.
The move reportedly follows extensive due diligence from Creso, which resulted in the decision that pending regulatory changes in North America would provide “ample opportunities” in the near term.
The move undoes CPH’s arrangement with the Canadian “magic truffle business” Red Light Holland, under which CPH would have had to delist from the ASX and list on the Canadian Securities Exchange under the ticker code TRIP.
In rationale for the move, non-executive Chairman Mr Adam Blumenthal said the listing could allow for easier comparisons to North American listed peers.
“Following potentially favourable legislative shifts, a NASDAQ listing will also provide us with access to the world’s largest recreational cannabis market and
a growing psychedelic medicines sector,” he said.
“Pleasingly, a dual listing opportunity will also allow Creso Pharma to retain its ASX listing, which we believe is in the best interests of our longstanding and faithful shareholders.”
Creso Pharma is also listed on the US OTCQB stock exchange.
Creso has appointed New York-based corporate advisory firm, EAS Advisors to aid with the proposed listing.
Red Light Holland has placed an order to purchase $170,000 of Creso Pharma’s hemp-based CBD products, with Creso reaffirming the companies remain committed to a strong working relationship.
Creso Pharma shares were up 12.5 per cent at 3:52 pm AEST to trade at 13.5 cents.
