A week after Creso Pharma Ltd [ASX:CPH] announced its foray into psychedelics, the company had more news to share today.
Most notably, Creso is preparing to apply for a dual listing on the US OTCQB exchange. A move that could provide them with further capital to progress their cannabis and psychedelic ambitions.
Speaking of which, management also had some good news to report on the Halucenex front. With their latest acquisition managing to secure a further 700 milligrams of pharmaceutical grade psilocybin (magic mushroom).
Let’s delve further into the details, shall we.
Key supply sets the stage for clinical trials
As Creso states, they’ve managed to secure more of this key psilocybin. Leveraging their existing relationship with the only synthetic psilocybin manufacturer in Canada.
In total, Halucenex should now have access to 12.3 grams of this substance. Enough to give them a chance to further test its treatment capabilities in a clinical trial setting.
Notably, they hope to broaden the number of trial participants in a Phase II trial (should it proceed). As well as Phase III, provided previous trials succeed.
With that in mind, Halucenex is progressing quickly. Especially as it is one of only 11 companies legally able to acquire this psilocybin. Meaning they have a huge head start to capture any potential market share.
On top of that, the proposed listing on the OTCQB provides more working capital for Creso. Opening them up to more investment potential to facilitate the kind of growth they’re aspiring towards.
As non-executive Chairman Adam Blumenthal comments:
‘Securing an additional supply of psilocybin is a very pleasing development and highlights the strength of Halucenex’s relationship with Canada’s only manufacturer. We are very excited to progress the upcoming clinical trial program and are confident that the initiative will add to the growing body of evidence for the use of psychedelic medicines as a much needed alternative.
‘The Company is also very excited about its proposed OTC listing. Creso Pharma has a growth potential global footprint and OTC will provide a platform for the Company to boost its visibility to a broad base of US investors, particularly as cannabis moves towards legislation.’
What’s next for the Creso share price?
What this means for Aussie investors in Creso, hopefully, is that they’re heading in the right direction. With a new focus, new listing, and hopefully new growth on the horizon.
However, this doesn’t mean the existing risks and challenges have gone away. As we’ve seen over the course of 2021 so far, it has been a challenging couple of months for pot stocks.
So, while Creso may have a solid path forward, it doesn’t guarantee success.
In our view though, the cannabis trend is still one worth following. Especially for those willing and able to stomach the volatile nature of these stocks.
If you’re looking for more tips and insights into this sector, then check out our latest report. Including three pot stocks worth looking at investing in right now.
Get your free copy, right now, right here.
For Money Morning