Creso Pharma Limited (ASX: CPH), a cannabis company, today announced the signing of a binding Letter of Intent with Medleaf Ltd to extend its medical cannabis product business in New Zealand.
The agreement comes after the significant regulation changes regarding the use of controversial Marijuana, were introduced in New Zealand’s regulatory framework, driven by the implementation of Misuse of Drugs (Medicinal Cannabis) Amendment Act, effective 18 December 2018.
Creso Pharma’s CEO and co-founder, Dr. Miri Halperin Wernli stated that Creso’s partnership with Medleaf is greatly powered by the evolution of regulatory conditions in New Zealand that are expected to bring forth several new opportunities with an initial investment by Medleaf.
These regulatory amendments are in support of the development of New Zealand’s future Medicinal Cannabis Scheme that would eventually deliver improved patient access to medicinal cannabis. It explains that CBD products are no longer regarded as controlled drugs, but as prescription medicines in New Zealand.
In the wake of this change, Creso Pharma targets to build more comprehensive cannabis business in NZ with expansion in the range of cannabidiol based medicinal cannabis products available to New Zealand consumers. In order to achieve this objective, the company has joined hands with cannabis activist in New Zealand, Medleaf Limited.
Currently, Creso and Medleaf are in a distribution agreement for Creso’s cannaQIX® 50. It is the only Creso product presently available in New Zealand but with this new agreement in place Creso aims to expands its footprint in New Zealand’s medicinal cannabis market.
Founder and CEO of Medleaf, Courtney Letica stated that “Medleaf undertakes the leading research, cultivation, extraction, and product development activities to achieve its core objective of developing a world-class cannabis business based in New Zealand.”
Creso further reaffirmed its optimistic outlook on the cannabis sector in New Zealand which it believes is an essential part of its business plan for APAC region. Medleaf’s CEO stated that the recent regulatory advancement had reinforced the potential of New Zealand to secure its place as a global leader in cannabis innovation and become the fastest growing markets for cannabis-related products in the region.
It is important to have an overview of three significant changes introduced in New Zealand’s medicinal cannabis regulatory framework.
The First one includes an improved status for individual requiring palliation. Second being medicinal cannabis products that are based on non-psychotropic cannabinoids such as cannabidiol (CBD), would no longer be considered as controlled drugs. Last and the third amendment states that every stage of medicinal cannabis production has to go through the quality standard check as per the clear guidance expected from New Zealand's Ministry of Health in 2019.
Ahead of this favorable outcome of Misuse of Drugs (Medicinal Cannabis) Amendment Act, both, Creso and Medleaf, foresee a wide array of opportunities opening up in New Zealand’s cannabis sector.
In today’s trading session, Creso Pharma’s shares traded at lower levels. The stock price fell by 4.425% to settle at $0.540 by the end of the trading session. Over the past 12 months, CPH has witnessed a negative performance change of 53.31%.
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