A Closer Look At Creso Pharma’s Response To The ASX’s Aware Query

A Closer Look At Creso Pharma’s Response To The ASX’s Aware Query

Creso Pharma Limited (ASX: CPH) is in the cannabis industry working to deliver quality products to humans as well as for animals. The company is first to import cannabis for medical use into Australia. It is also first to launch innovative products into Switzerland like anibidiol which IS the first hemp CBD based complementary feed in animal health and cannaQIX, the first CBD nutraceutical in human health. The company is aiming to deliver its pharmaceutical expertise to develop the highest quality products in the cannabis space.

On 5th April 2019, the company responded to ASX’s aware query, referring to a letter received on 3rd April 2019.

The query was regarding the company’s stock price and volume movements in securities trading which appeared to be suspicious to the exchange.

Sponsored ad by Kalkine

The suspicious activity in securities trading took place just before a major announcement by the company regarding its “significant commercial progress across premium product categories” which was released on 2nd April 2019 and was marked as “sensitive” by the company. This information disclosed all the progress update of its commercialised product portfolio as well as new products in the development pipeline.

On 28th March 2019, the stock price closed at A$0.325 and closed at A$0.43 on 2nd April 2019. That’s a massive increase of more than 32% in just 4 trading sessions. With the increase in the price, the traded volume also surged exponentially. The volume of 28th March 2019 was around 110,621 whereas it shot up to 1,267,328 the next day and was recorded at 1,078,299 on 2nd April 2019.

The company replied to all the queries of ASX. The company denied to the question of whether the progress information is the information that could create a material effect on the price of its securities.

The company also justified its basis for this view, as requested by the ASX. It stated that while the information is material to investors, the information was previously disclosed to the ASX (in February as well as March); therefore, it is not a piece of new information that would have a material effect on the price.

ASX was also interested in knowing the time when the company first become aware of the Progress Information to which the company replied this progress information represents a market update of the Company for the year ended 31 December 2018 and since. This information was already disclosed when the company became aware of it, in the release of Appendix 4E Preliminary Financial Report.

The company also answered to a question concerning the company’s compliance in accordance with the listing rules and, in particular, Listing Rule 3.1, to which it replied positively.

On 24th January 2019, the company announced a $3 million Institutional  placement.

On the technical front after this rally, the stock is settling down from its high levels and closed 4.4% down at A$0.435 as of 5th April 2019, compared to the previous closing of A$0.455. In the last six months, the stock has returned a negative return of 15.7%. However, over past one month the stock has soared by 18.18%.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments
Join Our Forum

We help you to connect with investors and people connected with the stock market.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report


Please enter your comment!
Please enter your name here