HomeNewsCanopy Growth founder joins ASX listed Creso Pharma

Canopy Growth founder joins ASX listed Creso Pharma

Australian cannabis company, Creso Pharma (ASX: CPH)  has had some issues over the past year following the failed A$122M acquisition by TSX listed cannabis company PhamaCielo. However, there may some light at the end of the tunnel as CPH is largely debt free, has substantially reduced operating costs, and appears to be generating consistent revenue through its Canadian cannabis cultivation facility, Mernova Medicinal Inc., thanks to completing a A$8.992M funding round priced at $0.0291 per share.

Creso has also brought on high-profile medical cannabis expert, Bruce Linton as a strategic advisor. Linton was Canopy Growth Corporation’s (NYSE: CGC) founder and CEO. He took Canopy from start up to a company with a peak market capitalisation of approximately US$15 billion. In his role as chairman and chief executive Linton secured market support for 16 rounds of financing, totalling more than US$5 billion in capital raises and oversaw upwards of US$3 Billion in 30 merger and acquisition transactions. He has extensive sector experience and holds multiple positions with international companies. Linton has also worked with large financial institutions including the World Bank. If CPH is on the verge of rapid growth, Linton’s the depth of industry experience could be invaluable.

Creso Director Miri Halperin Wernli said, “Bruce brings a wealth of invaluable knowledge and a deep network of cannabis industry contacts to Creso Pharma and we anticipate that his appointment will greatly assist us in achieving our near-term operational milestones and longer-term goals.

“We continue to target international distribution agreements in a number of new markets and progress product development initiatives that will unlock considerable shareholder value.”

The company improved its revenue with another repeat purchase order from South African-based Pharma Dynamics, this being the second purchase order from Pharma Dynamics for CPH’s cannaQIX® product, which is sold under the ‘Cannamics’ brand. This comes off the back of a successful product launch in March 2020 into the South African market. Pharma Dynamics will distribute Creso Pharma’s hemp-based products across South Africa, and plans to extend the distribution to Namibia, Botswana, Zimbabwe, Swaziland, Lesotho, Angola, Mozambique and Uganda. Pharma Dynamics, a subsidiary of Lupin Limited (NSE: LUPIN), currently ranks as the third fastest growing pharmaceutical company in South Africa.

Non-Executive Chairman Mr Adam Blumenthal said of the deal, “Securing this latest purchase order with Pharma Dynamics is a significant development and highlights the multiple opportunities we are witnessing in the region. Creso Pharma is beginning to see a trend in repeat orders from its clients globally which reinforces Creso’s high quality products.”

Integral to the growth has been their 100% ownership of Mernova Medicinal Inc. located in Nova Scotia, Canada; Mernova Medicinal own a 24,000 square foot world-class, cannabis growing, revenue generating, Cultivation and Production Facility. Mernova Medicinal received its initial purchase order from Nova Scotia Liquor Corporation (NSLC) for the purchase of two of their premium strains, HPG 13 and Lemon Haze. Mernova Medicinal has received multiple purchase orders from Nova Scotia’s sole distributor of recreational cannabis, totaling C$433,000. These orders seem like a promising entry into Canada’s retail markets, further diversifying Mernova’s (and parent Creso’s) revenue streams and adding to their growing wholesale product sales pipeline.

Kirby Gatsios
Kirby Gatsios is one of Hemp Gazette's staff writers, joining the team in 2020. Kirby has a personal interest in the use of cannabidiol (CBD) as a potential treatment for arthritis, and she’s also interested in the use of CBD for personal care. You can contact Kirby here.

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