Creso posts nearly $1m in six-month revenue ahead of acquisition
Health & Biotech
Health & Biotech
Special Report: Revenue for the six months to June rose by over 400 per cent to nearly $1 million for Creso Pharma, ahead of its acquisition by PharmaCielo.
Revenue of $926,675 — compared with only $184,076 in prior corresponding period — was largely due to strong growth in its commercialised product portfolio in Europe. That saw shares climb 4 per cent to 42c in early trade.
The acquisition, which still needs to meet shareholder approval as well as a number of other standard deal conditions, will combine two complementary cannabis companies to create a larger, well-funded, publicly traded company with a strong, international growth profile and significant strategic advantages.
The two are talking up several attractive synergies, including the creation of a vertically integrated supply chain, expansion of cultivation and processing facilities, expansion of commercial networks and product ranges and a powerful leadership team featuring heavyweights from both companies.
It is also attractive for shareholders: Creso shareholders will receive 0.0775 PharmaCielo shares for every Creso share held and listed option holders will receive 0.0185 PharmaCielo shares for each Creso listed option held. Creso will hold 13 per cent of PharmaCielo.
In further proof of the company’s impressive revenue streams, Creso was granted a license to import its cannaQIX lozenges into Brazil during the June quarter, and also signed a distribution agreement with Burleigh Heads Cannabis and received an import permit for Creso’s first shipment of the lozenges in Australia.
Its Canada operation also progressed strongly through cultivation, harvest and the commencement of revenue generation from its dried cannabis flower — Creso picked up sales from its Canadian production facility shortly after the quarter ended.
Revenue growth of the cannaQIX 10 and 50 range in Europe headlined the company’s financial improvement, while Creso’s animal health segment also saw more takeup and increased research and development activities.
“We are very pleased with our achievements this quarter,” Dr Miri Halperin Wernli, CEO and co-founder of Creso, said.
“Creso has increased its revenue generation in Europe, commenced sales in Canada and is about to start importing into Brazil. In addition, we have reduced our debt in preparation for our acquisition by PharmaCielo. The deal is a great opportunity for our listed securityholders to benefit from being part of a well-capitalized global medicinal cannabis company.”
This story was developed in collaboration with Creso Pharma, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.