Creso Pharma books another cannaQIX order in South Africa, as cash stockpile soars
Health & Biotech
Health & Biotech
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Special Report: The company’s latest purchase order for its cannaQIX cannabis lozenges adds to what is now a rapidly expanding global revenue profile.
As Creso Pharma (ASX:CPH) continues to build on its recent deal-flow momentum, the company has announced another new purchase order – this time from the South African-based Pharma Dynamics.
It marks the second purchase order from the group, and will see Creso bank another CHF220,000 (A$320,000) in revenue.
Pharma Dynamics is also a subsidiary of Lupin International (NYSE:LUPIN), the fifth-largest generic pharmaceutical company in South Africa, and has a range of over-the-counter products including cold and flu medications and immune boosters.
Pharma Dynamics will sell Creso’s CBD lozenges under the “Cannamics” brand across South Africa and has plans to extpand distribution to Namibia, Botswana, Zimbabwe, Swaziland, Lesotho, Angola, Mozambique and Uganda.
The hemp oil-based nutraceuticals aims to improve management of stress and to support mental and nervous functions.
“We are excited about the completion of this second order from Pharma Dynamics, which has underpinned a very successful launch of cannaQIX® under the Cannamics brand in South Africa.
“cannaQIX® has been developed using Good Manufacturing Practice standards and is standardised and user-friendly. Its strength and formulation allows for precise dosage control and the lozenge form is more palatable than many other oils on the current market. We have no doubt that it will continue to be well received by consumers in South Africa.”
The order adds to Creso’s healthy balance sheet, which stood at over $6 million as of December 31.
Since then the company has received another $1.7 million from the exercise of stock options, giving it a strong capital base to fund expansion into new markets.
“The current sales and revenue that has been announced is extremely encouraging,” Creso said.
“This healthy bank balance further demonstrates the group’s strong financial foundation to continue to win market share, as well as to be in a position to easily capitalise (on) further international growth opportunities.”
The company says it is working on a “number of new exciting opportunities” that will be announced in due course – which will just add to the number of initiatives Creso is undertaking around the world.
In North America, Creso’s wholly-owned subsidiary Mernova Medicinal has recently expanded into Canada’s biggest recreational market.
With Democrats shortly set to take charge of both the White House and Congress, Mernova is eyeing the prospect of possible federal marijuana decriminalisation, which would let the company export its artisanal cannabis into the growing number of states that have legalised recreational weed.
Further south, Creso expects to deliver its first South American purchase order for its hemp oil products for cats and dogs this quarter.
In Australia, with the Therapeutic Goods Administration voting to down-schedule CBD products effective February 1, Creso is working with natural lifestyle brand supplier Martin & Pleasance to supply its Swiss-made CBD lozenges and teas to Australian pharmacies.
Wernli said the Pharma Dynamics deal is the culmination of an extensive period of groundwork and execution, amid complications caused by the global pandemic.
“We are very proud of having accomplished this delivery in spite of the current restrictions in place, mainly due (to the) COVID situation. We look forward to further growth throughout South Africa and other territories together with Pharma Dynamics,” Wernli said.
This article was developed in collaboration with Creso Pharma, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions