Shares in Australian cannabis producer Creso Pharma (ASX: CHP) jumped 9% after it announced a three-year deal to supply the Canadian market.
Creso Pharma is based in Bangaroo, New South Wales, while it also has an office in Switzerland and it is building a 24,000 sq. ft. production facility in Nova Scotia. It is ramping up its Canadian operations by tying up a three-year supply deal with TerrAscend Canada.
TerrAscend is a producer and also a retailer via an ecommerce platform called Solace Health, which aims to provide patients with a unique one-stop-shop for all of their medical cannabis and accessory needs. Creso Pharma will supply it with a minimum of 100 kilos of cannabis flower per month over the next three years.
Creso chief operating officer John Griese said that his firm is “quietly building a diverse global enterprise”. It follows news of an export deal that it tied up with a Sri Lankan distributor to supply the Asian nation with its flagship product, cannAFFORD 50.
It also expanded its footprint in New Zealand by signing a letter of intent with Kiwi firm Medleaf to distribute its full product range. The duo will team up to explore local research, cultivation, extraction, and future product development. Medleaf called Creso one of the cannabis industry’s “innovation leaders”.
But it is by no means confining its efforts to humans. Creso also has grand plans to become the market leader in the pet CBD market. It claims that there has been a huge rise in CBD products as over-the-counter medicine for pets, following reports from vets and pet owners suggesting that CBD promotes wellbeing, balances behaviour, and reduces tiredness and fatigue.
Creso calls it a natural way to keep pets well adjusted and ensure comfort in old age. Its product, anibidiol(R), is produced in Switzerland, and it is already generating revenue in Europe, so it believes it can crack North America and other markets too.
“Few cannabis companies are currently commercial in countries across Europe and even less have established proprietary branded products such as Creso’s CBD-based Nutraceuticals cannaQIX and anibidiol in human and animal health,” said Griese.
Shares in the firm rose from AU$0.52 to AU$0.57 after the TerrAscend announcement was made, before settling back at AU$0.54.
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