Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Creso Pharma well-funded to pursue global revenue growth after raising A$18 million in heavily oversubscribed placement

% of readers think this story is Fact. Add your two cents.

Creso Pharma Ltd (ASX:CPH) (FRA:1X8) has secured firm commitments from institutional, professional and sophisticated investors to raise up to A$18 million through the issue of around 94.7 million new fully paid ordinary shares at A$0.19 per share.

The placement was heavily oversubscribed and strongly supported by a range of local and international groups including Australian businessman John Langley Hancock, S3 Consortium Holdings Pty Ltd and independent global fund manager L1 Global Master Opportunities Fund, among others.

It will be undertaken in a single tranche and the company also intends to seek shareholder approval to issue placement participants one option for every four shares issued which will be exercisable at A$0.38 each on or before a date that is 12 months after the date of issue.

“Well-funded to progress near-term initiatives” 

Creso Pharma non-executive chairman Adam Blumenthal said: “We are extremely pleased to have generated such strong interest and support for the placement and I would like to welcome a number of new investors to the register. 

“The board and management would also like to thank new and existing shareholders for their commitment to Creso Pharma. 

“The placement was very well bid and leaves Creso Pharma well-funded to progress a number of near-term revenue-generating initiatives.”

EverBlu Capital acted as lead manager to the placement. 

Advancing nutraceutical product sales

Funds will be deployed to undertake psychedelic clinical trials upon completion of the Halucenex transaction, advance sales of nutraceutical products globally and increase marketing of cannabis products through Canada.

Blumenthal said: “Key short-term focus will include finalising the acquisition of Halucenex and undertaking clinical trials. 

“Importantly, the acquisition provides the company with access to another lucrative vertical and potential revenue stream. 

“We will also be ramping up our nutraceutical division and preparing for the anticipated legalisation of cannabis in the US through our Canadian operations.

“Board and management look forward to providing shareholders with regular updates on progress over the coming months.” 

The clinical trials will explore the efficacy of psychedelic molecules on a range of mental health conditions such as depression and Post Traumatic Stress Disorder and open up another lucrative vertical. 

Looking forward

Funds will also be deployed to expand the company’s current nutraceutical offerings, scale-up operations at its wholly-owned Canadian subsidiary Mernova Medicinal Inc, in line with recent increasing demand for Mernova’s products, and progress a dual listing on the OTCQB in the US.

The OTC market listing is expected in quarter two of 2021 and will provide greater access to the North American investment community. 

Further, with a strong cash balance, Creso is well-positioned to attract new partners and explore complementary acquisition opportunities that may arise, ahead of the pending federal legalisation of recreational cannabis in the US.

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.