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Medical Cannabis Company, Creso Pharma Limitedâs (ASX:CPH) shares tumbled by over 34 percent in the last six months as on 1 February 2019. Today (4 February 2019), Creso Pharmaâs securities were suspended from quotation at the request of CPH. The company has requested a voluntary suspension on the Companyâs securities pending further detail on the potential transactions as disclosed in the cleansing statements of 31 January and 1 February 2019. As per the companyâs request, the securities will remain in suspension until the earlier of an announcement per the above or the commencement of trade on Tuesday 12th February 2019.
In the cleansing statement which was published on 31 January 2019, the company announced that it has issued securities pursuant to the $3 million placement to institutional and sophisticated investors as announced on 24 January 2019.
In the cleansing statement which was published on 1 February 2019, Creso Pharma announced that is in negotiation regarding the spin out of Cresoâs nutraceutical and other CBD assets into a new company. The new company will be listed on the Australian Stock exchange (ASX). As per the cleansing statement, the company is also in negotiation regarding the acquisition of European based health food and beverage business. As per the announcement, both of the transactions are incomplete and confidential, and they are subject to due diligence and execution of binding agreements. Due to the preliminary nature of both transactions, the company was unable to advise whether either transaction will proceed and cautions investors to not base on investment decision on the disclosure of these possible transactions.
On 1 February 2019, the company also announced that it has created Partnership with the National University of Colombia in Bogota and it has Signed Dr. Ricardo Salazar Lopez as Primary Medical Advisor. Dr. Salazar is a distinguished Colombian physician with strong connections to the academy of Medicine and the National University of Colombia of Bogota. The company is planning to leverage an expert medical network to support the development and validation of its therapeutic and nutraceutical products.
During the December quarter, the company completed the acquisition of Kunna SAS Colombia, representing a key milestone for the Company as the transaction allows the company to significantly develop its key strategic foothold in Colombia with Kunna SASâ licenses to cultivate, process, research, develop, export and sell medicinal cannabis. During the December quarter, Creso Pharma completed the construction of its Windsor Nova Scotia cultivation facility and was contacted by Health Canada at the end of the year for final content required to complete and approve the application for a license to produce.
In the December quarter, the company reported net cash used in operating activities of A$1,936k, Net cash used in investing activities of A$4,398k and the Net cash from financing activities A$2,433k. At the end of the December quarter, the company had cash and cash equivalent of A$6,379k.
In the last one year, the share price of the company decreased by 55.61 percent as on 1 February 2019. CPHâs shares last traded at $0.415 with a market capitalization of circa $51.54 million.
