The listing will provide Creso Pharma access not only to deeper capital markets, but also the rapidly-growing North American cannabis sector.

The long-awaited dual listing of Creso Pharma (ASX:CPH) shares in the United States is finally happening, with the stock set to commence trading on the OTCQB market from 11 June.

The listing plan has been in the works for some time, and is expected to unlock significant shareholder value and provide Creso with access to the world’s biggest capital market.

The decision was made following growing interest from North American investors, after the company delivered strong sales growth from its wholly-owned subsidiary Mernova and appointed leading cannabis entrepreneur Bruce Linton as a strategic advisor.

North American investors have also been seeking exposure to Creso after seeing significant progress made by its US acquisition target, Halucenex.

The dual listing will provide Creso with access to deeper capital markets, allowing its institutional and retail investors in North America with direct access to invest into an established cannabis and psychedelics medicines business.

“The company’s dual listing coincides with the growth Creso Pharma has achieved recently in the US and North America more broadly,” commented Creso Pharma CEO, Adam Blumenthal.

“Recently, we have been focused on laying a very strong foundation in the region, which is underpinned by the expansion of operations and key appointments that will provide a number of value catalysts for both Australian and North American investors.”

The dual listing will also provide greater exposure for clinical studies in universities, hospitals, and research centres as Creso prepares to enter the lucrative market for psychedelic products.

Creso Pharma will trade under the code COPHF.


Legislative tailwinds

Entering the US market aligns directly with Creso’s strategic outlook in expanding its operations within the region.

It will also give the company an opportunity for a potential revaluation, as it provides analysts and investors with easier comparison to its US and Canadian peers operating in the cannabis and psychedelic medicines sectors.

The recent strong demand for cannabis in the region follows major legislation shifts on cannabis in the US.
The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, for example, has recently been reintroduced to Congress by US federal lawmakers, which would eliminate the federal ban on cannabis.

The company is also gearing up to enter the Californian market, after Senate Bill 519 was passed by the State which would legalise the use and possession of psilocybin and other psychedelic compounds.

If passed into law, SB 519 will approve the use of mushrooms, MDMA, LSD, mescaline and ibogaine for eligible people.

These recent developments have provided Creso and Halucenex with a major market opportunity in California and also the US.

The company intends to capitalise on these opportunities, and has started discussions to progress partnerships and market entry strategies.

“The cannabis and psychedelic medicine sectors continue to gain considerable momentum,” the company said.
“Recent regulatory shifts have left Creso in a favourable position, and it is well placed to become a global leader across both sectors,” Blumenthal added.

Creso is also currently taking steps to secure Depository Trust Company (DTC) approval, which would allow real-time electronic clearing and settlement in the US for its ordinary shares.

The move will allow for trading access with major online brokers such as Ameritrade, Fidelity Investments, Tradestation, Charles Schwab and E-trade, which all offer trade services on the OTCQB market.

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.