Earlier this morning, the share price of Creso Pharma Limited [ASX:CPH] was up 5.33%, trading at 39.5 cents.
Creso Pharma has been in a slide for the last 12 months:
The latest news out of the company is that it will be entering a strategic collaboration with Burleigh Heads Cannabis Pty Ltd. It is also in the process of negotiating two transactions, one regarding its CBD and nutraceutical business and the other involving the acquisition of a European business.
New partnership spurs Creso Pharma share price
In an announcement today, Creso Pharma confirmed its plans to introduce its cannaQIX®50 product to the Australian market via a strategic partnership with Burleigh Heads Cannabis, a subsidiary of Cannabis Doctors Australia Pty Ltd.
The Binding Letter of Intent, that was signed between the two companies, is intended to geographically expand the distribution of cannaQIX®50 and subsequently a range of other therapeutic products that are in Creso Pharma’s pipeline.
CannaQIX®50 is a pharmaceutical grade, CBD-based lozenge that also contains niacin, B vitamins and zinc. It is designed to dissolve in the mouth and is intended to support the management of chronic pain.
CBD, or cannabidiol, is a cannabinoid that does not have intoxicating effects. It is being studied for a variety of therapeutic effects and has shown promise in treatments for anxiety, insomnia, pain and paediatric epilepsy.
The CEO of Creso Pharma, Dr Miri Halperin greeted the news saying, ‘We are really pleased to announce our partnership with Burleigh Heads Cannabis on the expansion of our business in Australia… we are looking forward to working together on the introduction of a range of pipeline therapeutic products to be produced by Creso at our production facilities globally.’
Creso Pharma provides clarification on two transactions
In earlier news, Creso Pharma provided clarification on two transactions they are in the process of negotiating.
The first is a potential spin out of the company’s nutraceutical and CBD business, which would transfer assets into a new ASX-listed company.
The second is the acquisition of a European-based health food business.
These would be big moves for the company, and shares were previously placed in a trading halt on 1 February.
While investors wait for more definitive news on these developments, they may at least be pleased with today’s upwards movement in the Creso Pharma share price.
We will keep you updated as the negotiations continue.
For Money Morning