Creso Pharma makes a play for a dual listing on the Toronto Venture Exchange
Health & Biotech
Once finalised, the move would make Creso the only ASX-listed cannabis company with a dual listing in Canada
Special Report: Creso Pharma is strengthening its position in cannabis-friendly Canada, recently announcing it has commenced the dual listing process on the Toronto Venture Exchange.
Known as the TSX-V, the Toronto Venture Exchange is a leading exchange for listed cannabis companies worldwide and offers access to capital from Canadian and North American investors.
The move makes sense for Creso (ASX:CPH) as it’s the only ASX-listed company that owns a cannabis facility in Canada, via its subsidiary Mernova Medicinal.
With construction of the 20,000 sq ft, fully Good Manufacturing Process (GMP) compliant facility nearing completion, the company says it has seen increased interest from the Canadian market and is eager to expand its North American investor base.
Mernova’s application for a Cultivation License was accepted in October this year, under the Access to Cannabis for Medical Purposes Regulations (ACMPR) administered by Health Canada.
Once approved, the Mernova License will be one of a very few licenses issued to local companies in Nova Scotia and will enable Mernova to plant its first cannabis crop.
The facility is designed to produce three to four tonnes of its “Ritual Green” brand of dry cannabis annually and positions Mernova to leverage a huge market opportunity driven by a shortage of supply.
No end in sight for cannabis demand
ASX-listed cannabis stocks have been in high spirits since recreational marijuana became legal in Canada back in October.
Canada is only the second country in the world and the first G7 country to legalise cannabis for recreational purposes and the move has opened up new sale and distribution opportunities to domestic and international markets.
Cannabis is predicted to be a US$6.5 billion ($8.7 billion) industry by 2020 in Canada, according to research by one of Canada’s biggest banks, CIBC.
Creso’s CEO, Dr Miri Halperin Wernli, called it an important milestone for the company.
“The Canadian market was always an ambition and given our operations in Canada, Colombia, Europe and Australia, it not only makes sense but it is timely we begin this process to meet investor demand.
“The recent landmark legislation for full, adult-use legalisation further demonstrates Canada’s world-leading position in the cannabis industry and we look forward to reaping the benefits of this growing market.”
Creso has appointed Echelon Wealth Partners Inc, which has raised over US$1.1 billion in the cannabis space alone to advise on the listing.
The process is expected to take two to three months and once finalised, will make Creso the only ASX-listed cannabis company with a dual listing in Canada.
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