Creso Pharma (ASX:CPH) is applauding breakthrough legislation by Democratic leaders in the US Senate to legalise marijuana at the federal level, as reform efforts in the United States gain steam.
To be sure, the proposal by Senate Majority Leader Chuck Schumer and colleagues Cory Booker and Ron Wyden is still very much a long-shot to pass. Not a single Republican has signed on (10 votes would be needed), and the White House has been non-committal.
But the mere fact that the cautious Democratic Senate leadership has thrown its weight behind the bill is a sign of how rapidly the conversation around drug prohibition is changing.
Eighteen US states have legalised recreational marijuana – New Mexico, New York, New Jersey, Virginia and Connecticut this year – and Rhode Island, Delaware and Pennsylvania could do so soon.
In California, a measure to legalise personal possession of psychedelics like psilocybin – which Creso’s just-acquired Canadian subsidiary Halucenex is devoted to researching – is moving forward in the Assembly after passing the Senate last month.
Activists in the state have also begun efforts to legalise psilocybin mushrooms for any use via a ballot measure.
Creso to benefit
It’s all good news for Creso, which is well-positioned to move into the US market on several fronts, including its subsidiary Mernova Medical, which is supplying multiple Canadian provinces with recreational weed and is located just 350km from the US border.
“The introduction of this legislation is a major breakthrough for cannabis companies more broadly and particular(ly) Creso Pharma,” says non-executive chairman Adam Blumenthal.
“Over recent years, we have successfully delivered new and innovative products to recreational markets in Canada, which are well received by consumers.
“We expect that we can achieve a much larger growth trajectory via the US market. Following the potential merger, we will have leading cannabis executives that have proven track records of successfully scaling cannabis companies.
“This will provide us with a distinct competitive advantage as the US opens its doors.”
Creso says it anticipates US market entry to occur as soon as this calendar year, following its merger with Red Light Holland.
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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