Creso Pharma Limited (ASX: CPH), established in 2015 and based out of New South Wales, Australia, develops and commercialises pharmaceutical-grade cannabis and hemp derived therapeutic, nutraceutical, and lifestyle products for patients and consumers. For this, Creso uses GMP development and manufacturing standards as a reference for quality excellence and holds global rights for a variety of proprietary delivery technologies that supplement the bioavailability and absorption of cannabinoids.
Recently, on April 2nd, 2019, the company released a progress update of its commercialised current product portfolio, as well as a review of new products in the development pipeline. The human health range of products including CannaQIX® 10 and CannaQIX® 50, launched with commercial partners Doetsch Grether and Pharmacare, are growing steadily and generating revenues.
Besides, following the launch of the animal health products range, anibidiol® RELAX and anibidiol® PLUS in Switzerland, the company is now set to further venture out in 14 other countries in 2019.
Going forward, around four new CBD hemp-oil and hemp-seed based products are ready for launch. These include CannaQIX® NITE, CannaPEAL® and CannaPEAL® NITE aimed at providing improved sleep and reduced stress, and CannaDOL® Revitalise, a functional topical gel for muscle and joints revitalisation. In addition, Creso Pharma is also preparing to enter the Medical Cannabis field with its Ritual Green Product line from the Creso Canada licensed cultivation and production site.
On March 25th, 2019, the company released its Annual report for the year 2018 which turned out to be quite dynamic and eventful. Creso Pharma, through the implementation of various agreements entered into new markets. These include a binding agreement with Cohen Propagation Nurseries Limited to establish and operate a medical cannabis growing facility in Israel; a commercial agreement with Mediphos OTC Consumer Health BV to market cannaQIX® in the Benelux region; and received the license to cultivate medicinal cannabis in Colombia via Kuna S.A.S, the wholly owned subsidiary of Kunna Canada Ltd.
Furthermore, a commercial agreement with CB Distributors Limited was signed to introduce cannaQIX®50 into New Zealand followed by one with Dr. A. & L. Schmidgall GmbH & Co KG of the Hedoga Group to commercialise cannaQIX® in Austria and many more until December 2018, driving its global expansion and market reach.
For the CY2018, the loss from continuing operations after income tax amounted to around $ 16.84 million while the net assets were valued at ~ $ 16.50 million including cash and cash equivalents of $ 6.39 million. The operating activities resulted in net cash outflows of around $ 8.17 million, primarily on account of large payments to suppliers and employees ($ 8.24 million) and for research expenses ($ 621,675).
Similarly, the investing activities led to $ 4.14 million of net cash outflows due to payments for plant and equipment ($ 6.73 million), intangibles ($ 629,759), loans to associates ($ 425,977) as well as acquisition of the Mernova Medicinal facility in Halifax, Nova Scotia, Canada ($ 120,759). The financing activities, on the other hand, contributed around $ 6.23 million to the net cash inflows.
Creso Pharma has a current market cap of ~ AUD 52.16 million with ~ 133.74 million outstanding shares. On April 2nd, 2019, the CPH stock price soared by 10.256% to AUD 0.430 with the close of the market trading.
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