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- Creso Pharma’s acquisition target Halucenex has secured an additional stockpile of pharmaceutical-grade psilocybin.
- Halucenex is confident that the new synthetic psilocybin would lessen the risks to its clinical trial schedule.
- Creso also announced that it is seeking a US OTC listing driven by increasing interest from investors in North America.
- The cannabis player anticipates the OTC listing will unlock considerable value for its existing shareholders.
ASX-listed global pharma player Creso Pharma Limited (ASX:CPH, FRA:1X8) has been grabbing the spotlight of late on the back of multiple significant announcements.
On 23 March 2021, the Company updated the market about its intent to dual list on the US OTCQB (OTC) market. Besides the dual listing update, Creso Pharma also announced that its acquisition target, Halucenex Life Sciences, had obtained a new supply for pharmaceutical-grade synthetic psilocybin from its Canadian manufacturing partner.
Halucenex secures new stockpile for psilocybin
Halucenex received an additional supply of 700mg of psilocybin for use in its future clinical trial plan, adding to the 11.6g secured earlier.
The psychedelics company finalised the deal with its manufacturing partner, the only pharmaceutical-grade synthetic psilocybin manufacturer in Canada.
Halucenex, the target acquisition of Creso Pharma Group, is a life science development player engaged in the research, development, and licensing of novel psychedelic molecules for the worldwide pharmaceutical and nutraceutical markets.
Source: CPH Announcement, 23 March 2021
Additional batch of psilocybin lowers risks to clinical trial schedule
Securing an additional batch of psilocybin is a significant development for Halucenex, and the Company is confident that this new stock will reduce risks to the clinical trial schedule.
With the new batch, Halucenex has a 12.3g accessible volume of synthetic psilocybin, allowing the Company to increase the number of participants in the Phase II trial. This confirms that the Phase II and Phase III clinical trial participants would be treated with the same Good Manufacturing Practice (GMP)-certified batch of synthetic psilocybin for tracking.
The new GMP-certified supply will allow Halucenex to conduct GMP formulations in the new delivery methods like microdoses, capsules, nasal and intravenous (IV) solution. Besides, the GMP formulations provide stability and validation of the delivery, which is crucial for any clinical trial.
The GMP certification also implies that the Company does not need further certifications for its supply from the regulators.
Planned OTC listing
In another exciting update, Creso Pharma brought to light its proposed dual listing on the OTC market in the US. The decision to advance the dual listing initiative was aided by the burgeoning interest from North American investors. Creso notified that the listing is a part of the strategy to increase global recognition of its operations in the cannabis and psychedelics medicines space.
The recent acquisition of Halucenex and Creso’s planned expansion into the US cannabis market (currently dependent on federal legalisation) is important for several North American investors.
Moreover, Creso Pharma will maintain regular disclosure in line with the reporting requirements of its primary market, the ASX, where the ordinary shares of the Company will continue to trade under the symbol “CPH”.
CPH anticipates the OTC listing would unlock significant value for its existing shareholders by helping North American investors be a part of Creso’s story. This will also allow easier comparisons to US and Canadian listed competitors operating in the cannabis and psychedelics space.
Notably, the Company continues to expand its global reach and advance prospective opportunities in the US cannabis sector. Creso also seeks to expand its business to psychedelics development with the acquisition of Halucenex.
The Company expects the US OTC listing to take place during the second quarter of CY2021. Besides, it will provide an update when the trading ticker has been given, and the listing timing is confirmed.
Non-executive Chairman Adam Blumenthal commented:
Mr Blumenthal also added that Creso is highly excited about its anticipated OTC listing. CPH has a growing global footprint, and the OTC will offer a platform to enhance the Company’s visibility to a comprehensive base of US investors, especially as cannabis moves ahead on the road to legalisation.
He added that the Company was looking forward to updating the market on the OTC listing process in due course.
Adding to this, Bill Fleming, Founder & CEO of Halucenex, commented:
Creso Pharma anticipates that OTC listing will offer significant shareholder value and provide the Company access to one of the world’s leading investment markets.
On 31 March 2021, CPH shares closed at A$0.200.