Creso lands cannabis supply deal in Canada just three months after legalisation
Health & Biotech
Health & Biotech
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Special Report: Medical cannabis product maker Creso Pharma has signed a supply deal in Canada just three months after the country legalised the drug.
Creso Pharma (ASX:CPH) continues to expand its global footprint, telling investors today that it had signed a three-year supply deal with TerrAscend to provide its premium cannabis product.
The company says it will help meet the significant consumer demand in Canada for cannabis products after the country legalised cannabis in October last year.
Creso already is actively engaged in Europe with its various CBD nutraceutical products for human and animal health.
Under the deal, TerrAscend will purchase a minimum of 100kg of cannabis flower per month from Creso from the date that Creso is licensed to sell cannabis under Canadian laws.
Building a base in Canada
Creso has recently completed a greenfield, state-of-the-art build of their Windsor Nova Scotia cultivation facility.
The building is built to GMP standard and designed to operate at the peak of efficiency. The 24,000 square foot facility is on a land parcel capable of expanding to 200,000 square foot of grow space.
It currently accommodates a two-tier grow room structure, with the capacity to yield in excess of 4,000 kgs of cannabis annually.
It is also looking to make itself dual-listed, with an upcoming move onto the Toronto Stock Exchange.
Creso COO John Griese said Creso was one of very few companies with established brands, like cannaQIX® and anibidiol®, across the globe.
“Creso is ticking off each step in its strategic plan and quietly building a diverse global enterprise,” he said. “As a result of supply agreements like the one with TerrAscend, Creso now enters the Canadian market place with committed revenues from product destined for the legal cannabis markets.”