AUS
NZ
UK
CA
USA
IND
Creso Pharma Limited (ASX:CPH), domiciled in Australia, is a pharmaceutical company with its other offices in Switzerland. It has, further, entered into the Canadian market through the acquisition of a Medical Cannabis company domiciled in Nova Scotia, Mernova. CPH is engaged in the development of high-quality cannabis product for people and animals. It is the first company in Australia to import medicinal cannabis and has launched anibidiol and cannaQIX in Switzerland.
On 24 January 2019, the company announced that it had successfully raised A$3 million through a placement, which was expected to be completed by 29 January 2019. Under this placement, the company issued 6,666,667 fully paid ordinary shares to institutional and sophisticated investors at a price of A$0.45 per share along with one free attaching listed (ASX:CPHO) option (A$0.80, 21 August 2020) for every 3 shares subscribed.
CPH had put its securities under a trading halt on 22 January 2019 due to this placement news. On 21 January 2019, the stock was trading at A$0.54 per share. On 24 January 2019, the stock resumed trading on ASX, and post the announcement of the news, the stock price declined by 4.63% to A$0.515 per share.
On 25 January 2019, the stock price further went down to A$0.49 per share leading to a total decline of 9.26% as compared to the price before the news was released. Today, the stock has further gone down by 2.04% to settle at A$0.48 per share, resulting in a cumulative decline of 11.11% since 21 January 2019.
The consistent decline in CPH stock price post the placement announcement may be attributable to the issuance of shares at a discount at A$0.45 per share as compared to the market price of A$0.54 per share on the day before the placement announcement.
The company declared its first half FY18 results on 28 August 2018. Although the company reported a gross profit of A$162,140 (on account of increase in revenue) as compared to a loss of A$12,045 over the previous corresponding period, it reported a higher loss from continuing operations before income tax of A$7.583 million as compared to a loss of A$3.53 in 1H17. The loss was on account of higher administration expenses; higher consultancy and legal expense; higher employee benefits expense; huge exclusivity fees and facilitation fees incurred this time; higher marketing and investor relations expense; and a huge amount of expense incurred on share-based payments during 1H18.
It further reported a loss on exchange differences on translation of foreign operations of A$21,456 leading to a higher total comprehensive loss attributable to CPH shareholders of A$7.605 million in 1H18 as compared to A$3.514 million in 1H17. It reported a higher diluted loss per share of 6.93 cents in 1H18 as compared to a loss of 4.86 cents during 1H17.
Further, the net assets of the company declined to A$15.675 million in 1H18 as compared to A$21.029 million in 1H17. During 1H18, it reported a fall in cash and cash equivalents to A$11.354 million as compared to A$12.425 million in 1H17. The trade and other payables also increased to A$1.596 million as compared to A$0.564 million in 1H17. The higher net loss led to the increase in the accumulated loss which was reported as A$27.255 million during 1H18 as compared to A$19.672 million in 1H17.
Looking at the past 1-year performance of CPH, the stock has generated a negative yield of 52.66% and a negative return of 30% over the past six months. CPH has approx. 124.19 million shares outstanding and a market cap of circa A$60.85 million with a 52-week high of A$1.095 and a 52-week low of A$0.335.
Disclaimer
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.
