Creso Signs Three-Year Supply Agreement With TerrAscend Canada For Premium Cannabis Sales

Creso Pharma Limited (ASX:CPH) has signed a three-year supply agreement with TerrAscend Canada, a wholly-owned subsidiary of TerrAscend Corp., (CSE: TER; OTCQX: TRSSF) (“TerrAscend”) to deliver its premium cannabis product to help meet the substantial consumer demand driven by Canada’s federal legalization of cannabis in October 2018. Under the terms of the Supply Agreement, Creso has agreed to sell, and TerrAscend has concurred to purchase a minimum of 100 kgs of cannabis flower per month from Creso from the date that Creso is licensed to sell cannabis under Canadian laws. Pricing is determined on a sliding scale depending on the grade/quality of the flower and whether the flower has been cultivated to GMP standard.

Creso develops the finest of cannabis to improve the lives of animals and people. It brings pharmaceutical expertise and methodological rigor to the cannabis world and endeavours for the uppermost quality in its products.

The Chief Operating Officer, John Griese, said that Creso has been ticking off individual steps in its strategic plan and is silently building a diverse global enterprise. There are few cannabis companies which are at present commercial in countries throughout Europe, and only a few of them have established proprietary branded products such as Creso’s CBD based Nutraceuticals cannaQIX® and anibidiol® in human and animal health. As a result of supply agreements like the one with TerrAscend, Creso has now entered into the Canadian marketplace with committed revenues from a product for the legal cannabis markets.

Lately, Creso has finished a greenfield, state-of-the-art build of their Windsor Nova Scotia cultivation facility. The building is constructed to GMP standard and has been designed to function at the peak of efficiency. The 24,000 square foot facility is on a land parcel capable of expanding to 200,000 square foot of grow space. Presently it houses a two-tier grow room structure, with the capacity to produce more than 4,000 kgs of cannabis annually. The facility is well positioned to supply material B2B as well as direct to retail. Recently, Creso announced its upcoming listing on the TSX-V. With no significant debt, any funds raised can assist the further commercial expansion of value-added production in Windsor Nova Scotia to support the imminent regulations of infused edible products.

Dr. Michael Nashat, Chief Executive Officer of TerrAscend, said that they were happy to work with Creso given their expertise in cultivation, propagation and product development. Creso’s state-of-the-art production facility makes them an ideal partner to support TerrAscend’s growth trajectory and commitment to the best-in-class products and formulations.

Creso’s CEO and Co-Founder, Dr. Miri Halperin Wernli said that the signed agreement was the consequence of a long history of positive conversations with TerrAscend. They believed that their missions are complementary and that opportunity beyond supply will be able to strengthen both the organizations. Confirming revenues for their dried flower supports a successful entrance into the Canadian cannabis space.

The shares of CPH closed the day’s session at A$0.540, up by 2.857 %, which is 0.525 more than the previous trading day closed price.

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