Creso extends its global reach with new deal in South Africa
Health & Biotech
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Special Report: Creso Pharma has continued the worldwide push of its cannaQIX products, signing a deal in South Africa which will see it enter the continent.
Creso Pharma (ASX:CPH) has entered into a binding term sheet for distribution of its cannaQIX product in South Africa with Pharma Dynamics — allowing the latter to distribute the product in Southern Africa.
The South African company has paid an initial $150,000 to Creso for the first order, with the cannaQIX products to hit the shelves of leading South African pharmacies by the end of the year.
The deal also includes minimum purchase order provisions, with the agreement to be canceled within three months if purchase targets aren’t met.
Pharma Dynamics said Creso was emerging as a leader in the cannabis product field.
“In line with our ethos of increasing access to affordable, quality medication, we have identified Creso Pharma as our partner of choice,” Pharma Dyamics’ CEO Erik Roos said.
“Creso Pharma is globally recognised as a leader in the production of cannabis products with
distribution agreements already in place in various countries in Europe and AsiaPac.”
For its part, Creso said having access to the African market would be a boon to the company.
“The evolving regulatory situation in South Africa is providing a solid foundation on which to build this close relationship with Pharma Dynamics,” Creso Pharma’s CEO and Co-Founder Dr Miri Halperin Wernli said.
“We are encouraged to see a wide range of opportunities opening up to bring premium hemp oil nutraceutical products to customers in South Africa.”
So, what’s cannaQIX?
The cannaQIX range of products are cannabidiol (CBD) hemp oil-based nutraceuticals which come in lozenge form.
They contain full spectrum organic hemp oil extract with CBD together with vitamins and zinc — with the aim to reduce stress and support mental and nervous functions.
cannaQIX 10 (which is at the heart of the South African deal) comes in packs of 24 lozenges designed to be absorbed into the body as quickly as possible.
This method works faster and more efficiently than tablets or capsules which need to be swallowed and have a high percentage of their ingredients broken down when absorbed through the intestine and passed first through the liver.
By being dissolved in the mouth, the active ingredients enter the bloodstream directly, avoiding this first pass through the liver.
While Creso will be excited by its progress in Southern Africa, the bigger picture looks rosy for the company.
CannaQIX®’s global market penetration has increased significantly this year.
Meanwhile, earlier this week PharmaCielo (the Canadian company in the process of acquiring Creso for $12m) managed to export its CBD oil isolate from Colombia to Creso’s Swiss headquarters.
With Creso locking in export deals for its products which use CBD oil, and PharmaCielo having a solid base of CBD oil production — the tie up now makes even more sense.