Directors of cannabis play Creso Pharma buy in to capital raising
Health & Biotech
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Special report: Creso Pharma has just closed a rights issue and directors of the cannabis play contributed more than $500,000.
Creso (ASX:CPH) is one of the most active ASX-listed companies in the cannabis space.
It’s investing heavily in cannabis production. A Canadian plant is expected to be ready in the third quarter with first revenue coming early next year.
Creso also recently moved to buy Colombian medicinal cannabis group Kunna S.A.S., establishing a Latin American beachhead. Kunna’s production site is now licensed to cultivate in Colombia.
Beer and tonic beverages are expected in production in the third quarter and revenue growth is expected to grow across the group from the fourth quarter.
Creso has also appointed a chief operating officer for the Americas which are forecast to support a total cannabis market of some $48 billion combined by 2023.
“The landmark legalisation of cannabis in Canada in October further supports this strategy and provides substantial opportunity for product growth and uptake,” the business said in its recent quarterly update.
Entitlement issue now closed
Creso last week closed a non-renounceable entitlement issue raising more than $1.2 million. Of that, more than $518,000 was raised through company directors.
The issue offered eligible shareholders the ability to subscribe for 5c options on the basis of one option for every two shares held.
The board is considering placing remaining shortfall options by November.
This special report is brought to you by Creso Pharma.
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