Medicinal cannabis manufacturer and developer Creso Pharma (ASX: CPH) has signed a key deal with New Zealand's Medleaf Therapeutics.
The deal will see Australia-listed Creso push deeper into the bourgeoning medicinal cannabis market across the ditch.
Creso's movements come at a pivotal time in New Zealand, with the country gearing up to a 2020 referendum on whether the country should legalise cannabis for personal use.
Possession of any amount of cannabis is currently illegal in New Zealand, but approved cannabis-based pharmaceuticals can be prescribed by a specialist doctor.
The comprehensive distribution agreement will see Medleaf exclusively distribute Creso's cannaQIX and 10 per cent CBD oil products in New Zealand.
Creso CEO Dr Miri Halperin Wernli says the timing is right for Creso's push into the New Zealand market.
"The evolving regulatory situation in New Zealand is providing a solid foundation on which to build this close relationship with Medleaf," says Dr. Wernli.
"We're pleased with our progress to date and encouraged to see a wide range of new opportunities opening up to bring life-improving products to patients in New Zealand."
The agreement between Creso and Medleaf expands the range of medicinal cannabis products which Medleaf initially anticipated to source through Creso Pharma back when the deal was initially announced in January.
Creso Pharma was recently named the number eight Top Cannabis Company by Business News Australia.
The company is currently in the midst of negotiations with Canadian cannabis company PharmaCielo which wants to acquire Creso for $122 million.
PharmaCielo is a cannabis group listed on Canada's TSX Venture Exchange, with a market capitalisation of $675 million.
The board of Creso Pharma has unanimously recommended this deal with PharmaCielo, but Creso Pharma shareholders need not take any action at this point in time.
If the deal is to go ahead Creso Pharma's co-founder and CEO Dr Miri Halperin Wernli will join the board of PharmaCielo as a director.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support