)
When it comes to cannabis, South American countries including Colombia, Venezuela and Chile are frequently listed as some of the world's top cultivators.
It comes as no surprise that with the rise of medical cannabis in Australia, that a few of our own publicly listed heavy-hitters are dipping into the lucrative overseas market.
Medical cannabis companies Creso Pharma (ASX: CPH) and AusCann (ASX: AC8) have both grown a solid South American footprint, and today both companies have announced further movements in the market.
Creso Pharma has now become the only Australian-listed medicinal cannabis company with direct exposure to the Colombian market, after it acquired Kunna Canada and its wholly-owned Colombian subsidiary Kunna S.A.S.
Creso announced today that it had acquired the company for for up to US$7.15 million (AUD$9.35 million) in shares. Creso intends to seek shareholder approval for the issue of the consideration shares.
By 2019, analysts predict that theColombian market alone will be exporting more than 40.5 tonnes of medicinal cannabis oil, meaning Creso's entrance into the market is perfectly timed.
Creso's jump into the Colombian market is highly advantageous, considering the country's equatorial location and ideal microclimates for growing cannabis.
Kunna S.A.S. aims to develop phytotherapeutic products with a view to treating seizures, chronic pain, cancer, epilepsy, and multiple sclerosis.
Creso Pharma co-founder and CEO, Dr Miri Halperin, says the acquisition of Kunna S.A.S. gives the group a platform to springboard into the Latin American market.
"The acquisition gives Creso a strategic foothold in the growing Colombian market and also the opportunity to further expand across the Latin American region," says Halperin.
"Creso will be one of the few companies globally and the only medicinal cannabis company listed on the ASX with the capacity to commercially cultivate medicinal-grade cannabis in the Colombian environment."
AusCann has also announced its own South American project is coming along well, with the company announcing it has planted its second medicinal cannabis crop in Chile.
In partnership with its 50-50 Chilean joint venture, DayaCann, AusCann has planted its second crop of 435 plants the maximum under its cultivation licence.
The plants will provide a range of cannabis strains to be extracted and processed into trial cannabinoid formulations for the treatment of chronic and neuropathic pain.
The joint venture is the only licensed medicinal cannabis grower in Chile.
Shares in AusCann are down 2.21 per cent to $0.67 per share at 12:20pm AEDT.
Shares in Creso Pharama are up 6.63 per cent to $0.89 per share at 12:20pm AEDT.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
)
