Creso Pharma shares surge ~12% after inking tattoo sector deal

Creso Pharma has announced it will make its mark on the tattoo sector signing a deal to capitalise on its upcoming acquisition of Sierra Sage Herbs.

Investors have reacted to news medicinal cannabis company Creso Pharma (ASX:CPH, OTC:COPHF,FRA:1X8) has signed a deal with Dr Pickles Pty Ltd, one of Australia’s leading tattoo post-care companies, sending its stock soaring ~12% to 5.8 cents.

The non-binding, non-exclusive Heads of Agreement (HoA) with Dr Pickles provides Creso with a pathway into the Australian body care market.

Dr Pickles is a Brisbane-based company, founded in 2010. The group was established due to the lack of petroleum jelly-based alternatives for people with fresh tattoos.

Dr Pickles’ product suite is cruelty and paraben free, all natural and manufactured in Brisbane. Its distribution footprint includes Woolworths stores nationally, as well as pharmacies, barber shops and more than 800 tattoo studios.

On top of that, Dr Pickles boasts a direct sales database of more than 20,000 online consumers.

Collaborative agreement to capitalise on Sierra Sage Herbs

Under the HoA both parties have agreed to enter into a collaborative agreement on or before July 29, 2022 with both parties able to extend this timeframe by mutual agreement.

Creso Pharma recently executed a deal to buy US-based Sierra Sage Herbs (SSH). The transaction is expected to complete in June 2022, subject to final approval by vote of Creso Pharma shareholders.

SSH is a leading consumer packaged goods company focused on plant-based and CBD products under the Green Goo, Southern Butter and goodgoo brands, with offerings across the CBD, first aid, beauty, sexual wellness, women’s health, and pet categories.

The collaborative agreement is intended to set out the terms upon which Creso Pharma and Dr Pickles will commercialise select products from the SSH portfolio in the Australian market.

The initial focus is expected to be on the introduction of SSH’s tattoo aftercare and sunscreen products with broad scope to expand the product range.

The collab will also explore the opportunity to bring select products from the Dr Pickles range to North American markets via SSH’s distribution network.

SSH’s points of sale include leading pharmacy chains and major retail groups such as CVS, Walgreens, Rite Aid, Albertsons Companies, Whole Foods, Walmart, Amazon US and Target.com amongst others.

And finally, the agreement will see the companies explore further commercialisation options for current and future innovative products.

SSH tattoo and sunscreen Products

SSH salves are considered fundamentally different from other products on the market. SSH’s herbs are carefully sourced from organic farmers, with the product’s defining characteristic being a lipid infusion process.

Rather than using pre-made extracts, SSH infuses fresh and dried herbs in organic oils over low heat for an extended amount of time to increase the potency value of the products.

Green Goo Tattoo Care is a herbal infusion specially formulated to soothe the pain and swelling associated with freshly tattooed skin, while providing a protective layer while the skins heals over time while moisturising and nourishing skin to help keep colours vibrant and tattoos looking fresh and new.

Green Goo Sunscreen provides effective moisturising, water-resistant, broad-spectrum SPF 30 protection that’s petroleum free, chemical free, oxybenzone free, gluten free, and coral-reef safe and is made with all-natural ingredients.

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.