Join our daily newsletter At The Bell to receive exclusive market insights
- Creso Pharma (CPH) enters an asset purchase agreement to acquire the ImpACTIVE Assets via a newly incorporated subsidiary, Creso ImpACTIVE
- Founded in 2019, ImpACTIVE is a Canadian life sciences company designed to provide alternative treatment routes to the athletic community
- Under the agreement, Creso Pharma will acquire the ImpACTIVE Assets for C$200,000 (A$216,529), payable in Creso shares priced at 11 cents
- This agreement allows the company to significantly strengthen its North American footprint and CBD products
- Creso Pharma is up 9.09 per cent on the market with shares trading at 12 cents
Creso Pharma (CPH) has entered an asset purchase agreement to acquire the ImpACTIVE Assets via a newly incorporated subsidiary, Creso ImpACTIVE.
Founded in 2019, ImpACTIVE is a Canadian life sciences company designed to provide alternative treatment routes to the athletic community.
It has developed a range of CBD-based products designed to reduce muscle and joint inflammation without the use of prescription pharmaceuticals or narcotics.
ImpACTIVE co-founder and CEO Brett Ayers was excited to join Creso Pharma.
“We are very excited to join the Creso Pharma group of companies. Creso has an established global footprint, existing sales channels and operations which will give us the framework to potentially significantly scale our own business to meet the revenue targets set,” Mr Ayers said.
“With the help of the board and management team, we are very confident that we can achieve this sales growth, as well as pursue other international expansion opportunities.”
Under the agreement, Creso Pharma will acquire the ImpACTIVE Assets for C$200,000 (A$216,529), payable in Creso shares priced at 11 cents.
Subject to shareholder and ASX approval, six million performance shares will be issued, with three million to convert into Creso shares once Creso ImpACTIVE generates C$20 million (A$21.6 million) in audited gross sales revenue within 36 months.
The remaining three million performance shares will convert into Creso shares upon Creso ImpACTIVE generating C$40 million (A$43.3 million) in audited gross sales revenue within 60 months.
Additionally, ImpACTIVE co-founders Brett Ayers and Kevin Tansey will enter into employment agreements with Creso ImpACTIVE.
The agreement is subject to entry into the employment agreements with Mr AYers and Mr Tansey and Creso intends to hold a meeting in December to approve the performance shares.
This agreement allows Creso to significantly strengthen its North American footprint and CBD products.
Creso Pharma Non-Executive Chairman Adam Blumenthal commented on the agreement.
“We expect that ImpACTIVE’s range of innovative products and brand ambassadors which will provide Creso Pharma with direct access to an emerging subsection of the global CBD market,” Mr Blumenthal said.
“The group also has established relationships with major US retail groups, which is expected to provide leverage for Creso Pharma as it seeks to grow sales of its own hemp-based CBD products.”
“Further, this agreement highlights the company’s ongoing commitment to entering the US market ahead of its proposed dual listing.”
Creso Pharma was up 9.09 per cent on the market with shares trading at 12 cents at 1:00 pm AEDT.
