Special Report: Creso Pharma (ASX:CPH) says if the down-scheduling of cannabidiol goes ahead in December it would unlock a major market for the company’s CBD and hemp products.

Australia’s Therapeutics Goods Administration this week pushed back a final decision on whether to allow CBD products to be sold in pharmacies without a prescription.

CBD products don’t get users high, but many believe they reduce anxiety and depression, alleviate cancer-related symptoms and relieve pain.

American domestic goddess Martha Stewart recently launched a line of CBD gummies and oils for US consumers, and the Australian market for such products is estimated at $200 million a year and growing.

Currently Creso’s cannaQIX 50 lozenges are being sold in Australia as a medicinal cannabis product under the “LozaCan” brand via distribution partner Burleigh Heads Cannabis.

The company also has a wide range of CBD and hemp-oil products under the cannaQIX brand that it expects to sell in Australia following any favourable regulatory decision.

“The potential down-scheduling of CBD is a major development for the broader market and provides Creso Pharma with a number of opportunities and potential new sales channels,” Creso non-executive chairman Adam Blumenthal said.

“Australia has always been considered an important market in our growth strategy. Ahead of the TGA’s final decision, the board and management have been exploring initiatives which will allow us to capture a large market share in Australia and unlock value for our shareholders.

“The company remains well capitalised and looks forward to providing ongoing updates on progress.”

Progress in Canada

Meanwhile, in North America, momentum is building for Creso Pharma’s Mernova Medicinal subsidiary, which has received several recreational cannabis orders in Nova Scotia, where it is based.

The company has a state-of-the-art, GMP ready facility in Windsor that was completed towards the end of 2018.

All its plants are indoor grown and fed hydroponically, and its cannabis is hang dried, hand trimmed and cured.

Mernova is just selling dry flower cannabis at this point, but has plans to expand into other forms of recreational cannabis.

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.