At time of writing, the share price of Creso Pharma Limited [ASX:CPH] is up 3.45%, trading at 45 cents.
The Creso Pharma share price has been locked in a slide, but is creeping towards a crossover of its 20- and 50-day moving averages:
The latest news out of the company is an update pertaining to cultivation at its Nova Scotia facility.
Creso Pharma indicates that first crops will be harvested in May
The highlights of the update include:
- Harvest of first crops to be carried out in May, with facility scheduled to be running at full capacity by the end of June.
- Creso Pharma has progressed its European Union Good Manufacturing Practice (EU-GMP) certification process.
- Three-year agreement with TerrAscend to supply 100kgs of crop per month, worth $6 million in sales per year.
- Nova Scotia facility designed to produce edibles when they are approved for sale in Canada by the end of 2019.
Dr Miri Halpering, the CEO and Co-Founder of Creso Pharma hailed the progress saying,
‘We are very pleased that our subsidiary Mernova has commenced cultivation at its Nova Scotia facility so soon after receiving its license. The cannabis genetics being used there are of very high quality and the grow operation is proceeding as planned along with the certification process of EU-GMP that will allow export to pharma companies in Europe. Mernova’s partnership with TerrAscend is progressing well and we look forward to seeing the results of the first harvest from the facility.’
What are Creso Pharma’s prospects?
As we articulate in our free report on pot stocks, the process for Creso Pharma is likely going to progress in two steps.
Step one for the company is to get its Canadian facility up and running, generating sales and sustaining cash flow.
With this in place, Creso Pharma can then branch out to more value-added opportunities, like its product pipeline and edibles.
The recent announcement promising sales revenue in the near future can only be read as good news.
While the stock is trading at a significant discount to where it was a year ago, established sales could help its valuation.
As the announcement underlines, it is the only ASX-listed company that has a 100% ownership interest in a company licensed to cultivate in Canada, and that they are only the fifth licensed producer in Nova Scotia.
For Money Morning