Creso Pharma is a step closer to unlocking Australian market
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Creso Pharma Limited (ASX:CPH, FRA: 1X8) has today obtained an exclusive Heads of Agreement (HOA) with leading natural, sustainable health and lifestyle brand supplier Martin & Pleasance Pty Ltd.
The agreement could see Creso Pharma capitalise on opportunities to supply cannabidiol (CBD) products to the Australian market.
Martin and Pleasance (M&P) provides an extensive range of natural remedies and medicines to consumers, with a particular focus on pioneering new and emerging products.
Established over 150 years ago and 100% Australian owned, M&P has a strong Australian presence; directly servicing over 4,000 Pharmacies across Australia and New Zealand, in addition to established online sales channels and additional distribution partners in the UK and Canada.
Under the non-binding agreement agreement, the parties have confirmed their intention to negotiate and enter into a formal binding and exclusive Collaborative Agreement on or before 30 April 2021, under which Creso Pharma will look to manufacture a range of CBD products in Switzerland, which would be sold under new and existing Martin and Pleasance brands in Australia.
Creso Pharma has earmarked four products from its proprietary nutraceutical range in lozenge and tea form, which are all manufactured in a GMP certified compliant facility.
This news follows an interim decision from the Therapeutic Goods Administration (“TGA”) to down schedule CBD products to schedule 3 medicines in Australia, which would allow adults ages 18 or over to purchase CBD products over-the-counter through pharmacies without the requirement of a prescription.
The TGA’s final decision is expected to be delivered in the coming weeks, and entry into the proposed Collaborative Agreement with M&P remains subject to a positive outcome from the decision.
The agreement sets a framework for Creso Pharma to respond quickly to a favourable TGA decision and directly access the Australian CBD market, which has a projected value of ~$200m.
The last few weeks have been kind to Creso, as it has received several purchase orders, the most recent from the Province of Ontario in Canada.
Promising regulatory changes from the United States, European Union and the United Nations have also accentuated the potential medical properties of cannabis and subsequent commercial value, which has had a favourable impact on CPH's share price.
CPH recently saw share price gains of over 1300%, achieving a 12 month high of 46 cents earlier this week, up from 3.1 cents a fortnight ago.
Creso Pharma Non-Executive Chairman, Adam Blumenthal explained: “The planned down scheduling of CBD products in Australia paves the way for Creso to introduce its unique and sophisticated range of GMP products and capitalise on what is expected to be a large market opportunity.
“Martin & Pleasance have a leading reputation in Australia, as well as established sales channels which would directly benefit Creso Pharma. We are excited to jointly develop this opportunity with them and expect our products to be very well received by consumers.”
tagsCANNABIS STOCKS THERAPEUTIC GOODS ADMINISTRATION TGA AUSTRALIAN PRODUCTS POTSTOCKS MEDICINAL CANNABIS
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.