Special Report: Creso Pharma’s (ASX:CPH) has signed a deal to supply its products to an Australian supplier, if the Therapeutic Goods Administration goes ahead and down-schedules low-dose CBD products later this year.
Creso has signed a deal with natural medicine supplier Martin & Pleasance, whose brands include Ener-C multivitamin drink mix; Schuessler Tissue Salts; He Men’s health; and Zen Joint & Pain relief. It sells to over 4,000 pharmacies across Australia and New Zealand.
Under the deal, Creso will supply its Swiss-made CBD lozenges and teas for sale under new and existing Martin & Pleasance brands in Australia. The company has earmarked four products from its lozenge and tea range.
The deal is contingent on the Therapeutic Goods Administration down-scheduling CBD products so they can be sold in pharmacies rather than via a doctor’s prescription. The TGA is expected to make a decision in late December.
“The planned down scheduling of CBD products in Australia paves the way for Creso to introduce its unique and sophisticated range of GMP products and capitalise on what is expected to be a large market opportunity,” says non-executive chairman Adam Blumenthal.
“Martin & Pleasance have a leading reputation in Australia, as well as established sales channels which would directly benefit Creso Pharma.
“We are excited to jointly develop this opportunity with them and expect our products to be very well received by consumers.”
The agreement is currently non-binding, with the expectation to enter into a formal binding and exclusive Collaboration Agreement before the end of April 2021. The agreement sets a framework for Creso Pharma to respond quickly to a favourable TGA decision, commencing supply into the Australian market.
Progress in Canada
Meanwhile, Creso is also making progress in North America, where its wholly owned subsidiary Mernova Medicinal has received three purchase orders for a total combined value of $C275,023 ($288,159), as well as a Notice to Purchase order from the Province of Ontario, regarded as Canada’s biggest recreational market with a quarter of the country’s market share.
The first order valued at $C232,826 ($234,841) is from Truro Cannabis Company. It’s a bulk order for Mernova’s HPG13, Lemon Haze and Mimosa dry flower strains of indoor grown, hand trimmed, hang dried, cured cannabis under the Ritual Green brand.
Creso has also received a maiden purchase order from the Yukon Liquor Corporation, in the amount of $C24,333 ($25,436) for the HPG13, Lemon Haze and Mimosa strains, and will be sold through the leading retailer, Triple J’s Canna Space, the first private retailer in the Yukon.
The third purchase order is from the Nova Scotia Liquor Corporation, for the Lemon Haze and Mimosa strains, and is valued at $C17,863 ($18,708), the fourth purchase order received from the NSLC.
Mernova has also received a Notice to Purchase order from the Province of Ontario for its HPG13, Lemon Haze and Mimosa strains, and expects to receive an initial purchase order in the near term.
The company is also exploring opportunities in the United States after the US House of Representatives passed the MORE Act, which approved in the Senate would decriminalise marijuana at the federal level. The Mernova facility is just 350km from the US border.
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.
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