Creso welcomes news that US cannabis banking and expungements bill is close
Health & Biotech
Health & Biotech
There are reports that regulatory progression on the US cannabis front is getting closer which is good news for ASX-listed Creso Pharma.
At a US Senate debate on Sunday Senate Majority Leader Chuck Schumer said Congress is “very close” to passing a cannabis banking and expungements measure.
Schumer said he’s making bi-partisan progress with senators about introducing and passing a cannabis bill that would open banking services for legal pot companies and erase criminal records for cannabis convictions.
“I’m working with a bunch of Republican Senators, a bunch of Democratic Senators to get something passed,” Schumer said in the debate.
The update by Schumer is a boost to the North American operations of Aussie pot stock Creso Pharma (ASX:CPH) who have a lot of skin in the US game.
“We welcome all signs of positive development on the US regulatory front. The US cannabis space represents a significant opportunity, however regulatory changes are required before Creso can be a participant” CEO and MD William Lay said.
Schumer’s comments comes just weeks after President Joe Biden announced plans to pardon all federal offences of cannabis possession in the USA, a significant step towards decriminalisation.
The decriminalisation and legalisation of cannabis at US Federal Government level could provide increased appetite from North American institutional investors in the cannabis sector.
Lay said Creso will be ready to leverage its recently acquired US-based business Sierra Sage Herbs LLC. and existing recreational cannabis brands at Mernova Medicinal Inc. to advance US-focused opportunities in the lead up to potential decriminalisation.
Sierra Sage Herbs has strong brand recognition across the US and already sells and distributes a range of CBD and non-CBD products to major American retailers.
“Mernova has developed a reputation for high quality craft cannabis products and we believe that we could leverage this expertise in a future, legal US market”
Should cannabis be federally legalised Creso is also bolstering its contingency plans to broaden the division’s offering for the US recreational cannabis market.
The company is actively keeping tabs on the space in order to be in a position to act swiftly if regulations change.
Lay said Creso will also benefit from its existing board and management team with extensive experience in the North America cannabis sector.
Earlier this year Creso recruited one of the biggest names in the global cannabinoid game Bruce Linton to its board as a non-executive director.
Linton co-founded Canopy Growth, leading it to become the first cannabis producer listed on the New York Stock Exchange (NYSE) – with a peak market capitalisation of US$15bn.
“To have Bruce’s support is incredible – he is well recognised as a global leader in this space and his expertise continues to be very valuable to Creso” Lay said.
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.