As per ASX announcement dated 7 January 2019, Creso Pharma Limited (ASX: CPH) has signed a Letter of Intent with Ceyoka Health Private Limited, Srilanka’s leading medical distribution company, for geographical expansion of medicinal cannabis across the country. The initial plan is to obtain the required regulatory approvals for selling Cresco’s proprietary cannabis drug cannAFFORD® 50 via approved channels in Sri Lanka. The strategic partnership will further shift its focus towards innovative therapeutic drugs containing hemp extracts.
Creso Pharma is Australia’s based pharmaceutical company engaged in offering cannabis medicine and hemp- derived lifestyle products for the treatment of humans and animals. The portfolio is spread across five categories- Therapeutics, Nutraceuticals, Animal Health, Lifestyle and Topicals. The company is the first to import medicinal cannabis into Australia.
It was the first to introduce innovative hemp derived products into Switzerland medical market. It entered the Canadian market by acquiring Nova Scotia-based Mernova. On 19 December 2018, the company confirmed the almost completion of the construction of indoor cannabis growing facility and is expecting to commence the cultivation upon receiving the approval from Health Canada. As announced on 20 December 2018, the company completed the 100% acquisition of Kunna Canada Limited. By doing this, it has indirectly acquired Kunna Colombia, Columbian registered subsidiary of Kunna Canada, which has all the necessary permits to cultivate, produce and export cannabis products.
As per ASX announcement on 2 January 2019, with the approval of Israel’s New Medical Cannabis Export Law, Creso is well positioned to benefit via its 74% ownership interest in a joint venture with Israel based Cohen Propagation Nurseries.
Ceyoka Health is a Sri Lanka based diversified industrial company operating in numerous segments – healthcare, essential oils and flavors, trading, engineering and interior designing. It is a leading supplier of pharmaceuticals, medical devices and surgical equipment to both Government and private sector institutions. It obtains high-quality medicines from China, the USA, Switzerland, Korea, India and many other countries. Ceyoka is part of Nawaloka Holdings, a diversified company in Sri Lanka with operations in the pharma healthcare, construction, manufacturing, trading, lubricant and aviation sectors.
cannAFFORD®50 is Creso’s Switzerland produced; flagship buccally formulated cannabidiol (“CBD”) lozenge for the treatment of chronic pain. Coming in sets of 30 tablets to be dissolved in the mouth, it works more efficiently than tablets that have a high percentage of their ingredients broken down when swallowed and absorbed through the intestine.
As stated by Cresco’s CEO Dr. Miri Halperin Wernli, the company is excited to partner with Ceyoka Health to expand in Srilanka’s healthcare sector and anticipate a very long and successful partnership.
As stated by the management in the recent quarterly update, Cresco is firmly positioned to establish its substantial footprint in the global market for cannabis products. The company’s market value surpassed USD 7.5 billion and is projected to reach USD 30 billion by 2021.
Stock performance: Creso’s stock has demonstrated decent performance this year offering YTD return of 9.18% till date. Over last one month, the share price has increased by impressive20.22%. The shares closed today at AUD 0.575, up by 7.4%.
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