Creso enters the growing CBD market in sport and recreation
Today, Creso Pharma Limited (ASX:CPH, FRA:1X8) announced a Letter of Interest (LOI) which marks its entry into the CBD market for sport and recreation; an industry whose global valuation is estimated at US$22BN by 2022 and C$220M in Canada alone.
The non-binding LOI has been signed between Creso Pharma Limited and ImpACTIVE Holdings Ltd to distribute Creso’s suite of hemp CBD based human health products, CannaDOL and cannaQIX®, in Canada and the US.
As part of the LOI, Creso will also obtain the rights to distribute ImpACTIVE’s CBD roller application in Switzerland and Europe.
ImpACTIVE is a Canadian company which has developed a range of CBD based products, designed to reduce muscle and joint inflammation without the use of heavy narcotics or prescriptions pharmaceuticals.
The company was founded by current and former high-profile athletes who have struggled with injury and wanted to provide an alternative treatment route to the athletic community, and its products are promoted by several well-known brand ambassadors.
Distribution across North America and Switzerland
Alongside the North American rollout, Creso will also become an authorised distributor of ImpACTIVE’s CBD based roll on product range, with the initial launch in Switzerland expected to commence April 2021.
The growing sports and recreational market will be Creso’s initial focus. Creso has access to over 2,100 pharmacies and 400 sport and fitness centres in Switzerland and expects to receive strong uptake.
Each distributing party is responsible for obtaining all the necessary regulatory approvals and registrations required to sell the hemp CBD based products in the relevant jurisdiction.
Creso’s Commercial Director Jorge Wernli, commented, “We are very proud to enter the sports and recreational market with such a high calibre partner as ImpACTIVE. This LOI is important for Creso Pharma, as it further broadens our international footprint and provides another large market opportunity.
“We look forward to working with ImpACTIVE to ensure all products are well received in Europe and North America, and also leveraging their innovative product range to further add to the Company’s growing sales profile.”
The launch of cannaDOL will be supported by high profile influencer and two-time WFF World Vice Champion Jenny Dietschweiler, who added: “cannaDOL brings substantial fast relief to joints and the muscles after intensive training. It enables faster high-performance and re-achievement. cannaDOL is really the way to enhance mobility”.
Terms of the Agreement
Under the agreement, the parties have agreed to enter into a formal commercial agreement on or before 1 April 2021 setting out the terms upon which ImpACTIVE will distribute Creso Pharma’s cannaDOL and cannaQIX® products through its established sales channels in Canada and the USA.
The initial term of the agreement is one year and will automatically renew after one year, unless either party notifies the other of their decision to not renew the agreement within 90 days prior to the expiry of the Initial or Renewal Term. Initial Term and Renewal Terms are subject to termination for cause upon notice by either party, or upon failure to meet the above referenced renewal conditions.
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