Creso Pharma Ltd (ASX:CPH) is preparing for a major increase in cannabis sales, as the company appoints a new strategic advisor and secures millions in investments.
Australian cannabis company Creso Pharma has announced they have secured $8.992 million in investments after issuing 309,021,675 fully paid ordinary shares at a price of $0.0291 per share.
To supplement the growth of the business Creso’s chairman Adam Blumenthal has also committed $1 million in funding, pending shareholder approval. Blumenthal has also offered a further $3 million.
During the midst of this, Creso Pharma has appointed a new strategic advisor – Bruce Linton. Linton is the former CEO of Canopy Growth where he lead the start-up to a market capitalisation of $15 billion USD. Creso Director Miri Halperin told Finfeed that these changes are a part of Creso’s growth plans.
We continue to target international distribution agreements in a number of new markets and progress product development initiatives that will unlock considerable shareholder value.
This rapid expansion prepares the company to take advantage of the Therapeutic Goods Administrations (TGA) proposal to re-schedule CBD oil from a Schedule 4 drug to an over-the-counter medicine (Schedule 3).
This would increase Creso’s sales dramatically within Australia, as their primary products would be available in pharmacies without a prescription. The TGA is due to release their final scheduling decision in February 2021 with the rescheduling taking effect next June.
In preparation for a national and global expansion, Creso has prepared six new human and animal products, including a hemp tea and two CBD oils. Creso has also secured distribution agreements in Australia, New Zealand, South Africa, Portugal, Spain, Scandinavia, Brazil, Switzerland and the UK.
The company currently operates a 24,000 square metre growing facility in Nova Scotia. Creso’s Canadian subsidiary Merniova Medicinal also recently secured a C$180,000 order from recreational cannabis retailer Nova Scotia Liquor Corporation.
Creso’s cash injection will also help the business grow its subsidiaries in Switzerland and Canada.
