Creso Pharma receives approval for cannabis acquisition
Creso Pharma Limited (ASX:CPH) has today announced that regulatory approval from ASX for the shareholder meeting document to approve the transaction with Kunna Canada Ltd has now been received.
Enclosed is a Notice of Meeting for a shareholders’ meeting to be held on 16 October 2018 at 10:00am (WST). Subject to the receipt of shareholder approval, the company anticipates completing the Kunna acquisition in mid-October 2018 and thereafter immediately advancing its business plan in Colombia.
Since first executing the agreement relating to the Kunna acquisition, Colombia has cemented its place as the international jurisdiction of choice for low cost, high quality cannabis production. There have been multiple international (mainly Canadian) companies that have announced transactions to enter Colombia, including from the world’s largest cannabis company Canopy Growth Corp in a transaction worth up to US$96 million.
The company believes these transactions vindicate CPH’s move into Colombia and should provide investors with additional comfort in relation to CPH’s strategy.
Retraction regarding Quarterly Activities Report
CPH notes that, on 31 July 2018, the company’s Quarterly Activities Report stated that the company had completed the Kunna acquisition.
The company intended for this to disclose that due diligence had been completed in relation to the Kunna acquisition. Completion has not occurred, and these statements are hereby retracted by CPH. As noted above, completion is now anticipated to occur in mid-October 2018 (subject to the receipt of shareholder approval).
Once its acquisition of Kunna is finalised, CPH will be one of only a few companies in the world — and the only medicinal cannabis company listed on the ASX — with the capacity to commercially cultivate medicinal-grade cannabis in Colombia.
In June, the company announced that Kunna S.A.S, the wholly owned Colombian subsidiary of Kunna Canada Ltd, had been granted a licence to cultivate medicinal cannabis in the country.
However, it is an early stage of this company’s development in these countries and if considering this stock for your portfolio, you should take all public information into account and seek professional financial advice.