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Creso Pharma set on commercialising last nine hemp products

Health Care
ASX:CPH
02 December 2019 13:33 (AEST)

Creso Pharma has released an update regarding its strategic direction to accelerate global operations.

The company will aggressively pursue the further commercialisation of the remaining nine pharmaceutical grade products currently in its portfolio, key certifications and strategic partnerships, and accelerating growth.

Creso Pharma expects its growth plans will be supported by secure funding, increasing revenue and well judged cost management.

In early June, Creso Pharma entered a buyout agreement with leading Canadian hemp company PharmaCielo, and this buyout was due to Creso Pharma’s immanent strength.

The company believes the value of its fundamental operations continues to grow and is supported by its portfolio of products, established operations, corporate interest and market opportunities.

Creso Pharma’s products focus on the four key areas of therapeutics, cosmetics, nutraceuticals and animal health.

There are 13 products which have been developed with four having been commercialised and generating sales, and nine pending commercialisation.

Two of the commercialised products are targeting human health and two for animal health.

All of its products are made with standardised dosing and formulations through the application of pharmaceutical rigour, good manufacturing practices (GMP) standards and proprietary technologies.

Creso Pharma also announced its wholly-owned subsidiary Mernova Medical was granted a licence to process cannabis by Heath Canada on September 13, 2019.

This licence expands Creso Pharma’s offerings beyond cultivation and sale of hemp and enables it to produce and distribute hemp oils, concentrates and other products in Canada.

Currently, Mernova is actively engaged and is in the advanced stages of securing European GMP certification.

Once Creso Pharma has secured EU GMP certification, it will be one of the very few EU GMP certified producers in Canada allowing the company to export and sell to Europe.

Creso Pharma also introduced its first medicinal hemp products into New Zealand and will follow this up with more products from Mernova.

While Creso Pharma’s focus is now on accelerating its expansion into international markets, Creso Pharma and PharmaCielo remain willing to collaborate to unlock the harmony between the two companies.

Creso Pharma has also secured funding to accelerate its global operations with a total of approximately $5.03 million raised so far.

A total of $3.45 million was raised through an issue of convertible securities and $1.58 million raised through a share placement.

The company now seeks to raise a further $2.05 million under first tranche notes.

The funds raised have been partially used to repay the loan from PharmaCielo with the remaining used for its operations and working capital purposes.

Since being reinstated on the ASX today, Creso Pharma’s share price has dropped 30.5 per cent with shares trading for 14.3 cents apiece at 12:12 pm AEDT.

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