Creso raises $3M to boost hemp and cannabis sales abroad

Creso raises $3M to boost hemp and cannabis sales abroad

Creso Pharma (ASX: CPH) is flying high on its international ambition, announcing today that it has raised $3 million to boost sales overseas.

The Sydney-based medicinal cannabis and hemp producer has successfully raised the funds in a placement to institutional and sophisticated investors.

The injection of capital will be used to accelerate sales and marketing efforts of its human and animal products in Europe and Canada, as well as repaying debt.

Canada has become a major hub of activity for the cannabis industry following its nationwide legalisation of recreational cannabis in October 2018.

Creso is one of the major listed Australian companies pushing for a serious slice of the Canadian cannabis market, estimated to be worth $23.6 billion over the coming years by Deloitte analysts.

The country is currently struggling to maintain consistent supply of cannabis, with the government in some cases stepping in to delay the opening of many retail locations around the country.

Experts in the cannabis industry believe that Creso is well placed to capitalise on these developments considering the business has focused on building a diverse gloval business.

This is especially the case because of its three-year supply agreement with TerrAscent Corp to provide premium cannabis product to help meet the significant consumer demand following Canada's legalisation in October, as well as its new 24,000 sq ft. cultivation facility in Nova Scotia.

The company expects to complete the placement and issue the securities on Tuesday 29 January.

Creso Pharma, with its flagship CannaQIX product, was named Australia's number 8 top cannabis company by Business News Australia in October 2018.

Shares in Creso are down 5.56 per cent to $0.51 per share at 11.48am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

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

Looking for a credit or charge card that’s built for your business? Try American Express
Partner Content
A good credit card should work for you, not against you, and let you and your business ...
American Express
Advertisement

Related Stories

Study finds cybersecurity skills gaps on boards as Optus debacle rolls on

Study finds cybersecurity skills gaps on boards as Optus debacle rolls on

As the backlash continues over a data breach at Optus that has pote...

‘We have changed’: The Star pleads with NICC to keep its casino licence

‘We have changed’: The Star pleads with NICC to keep its casino licence

The Star Entertainment Group (ASX: SGR) has pleaded with the NSW In...

Fitness First parent divests franchise division of Jetts Fitness via management buyout

Fitness First parent divests franchise division of Jetts Fitness via management buyout

Jetts Fitness Australia CEO Elaine Jobson has led the acquisition o...

Universal Store buys Byron Bay fashion brand THRILLS for $50m

Universal Store buys Byron Bay fashion brand THRILLS for $50m

After working alongside Universal Store (ASX: UNI) for nine years, ...