- Creso will be the only cannabis company publicly listed in Australia and Canada, giving it exposure to a wider pool of investors.
- TSX-V is the premier exchange for listed cannabis companies worldwide, with easier and more substantial access to capital available from Canadian and North American investors.
- Health Canada has accepted Creso’s application to become a Licensed Producer for its 20,000 sq ft Mernova cultivation facility in Nova Scotia.
- Cannabis will be a US $6.5 billion (AUD $8.7 billion) industry by 2020 in Canada, according to research by one of Canada’s biggest banks, CIBC.
Creso Pharma Limited (ASX:CPH, the “Company” or “Creso”) has commenced the dual listing process on the Toronto Venture Exchange (“TSX-V”). On completion of the listing, expected to take place within 60 to 90 days, Creso will be the only ASX listed Cannabis Company with a dual listing in Canada.
In February 2018, Creso finalised the acquisition of Nova Scotia-based medicinal cannabis producer, Mernova Medicinal Inc. (“Mernova”). The completion of construction of Mernova’s 20,000 sq ft, fully Good Manufacturing Process (GMP) compliant indoor facility is imminent, and licensing is due to be granted within the coming months.
The purpose-built Mernova facility is designed to produce three to four tonnes of its “Ritual Green” brand of dry cannabis annually. This has sparked increased interest from the Canadian market and as a result, Creso has decided to dual list and expand its investor base into the North American market.
Said Creso’s CEO, Dr Miri Halperin Wernli: “With our intention to add value for our shareholders, this is an important milestone for Creso. We are pleased to offer Canadian and North American investors the opportunity to invest in a globally recognised cannabis company with a unique approach and high-quality, pharma-grade, innovative products.
The Canadian market was always an ambition and given our operations in Canada, Colombia, Europe and Australia it not only makes sense but it is timely we begin this process to meet investor demand. The recent landmark legislation for full, adult-use legalisation further demonstrates Canada’s world-leading position in the cannabis industry and we look forward to reaping the benefits of this growing market.”
In 2017, US$2.25 billion was raised across 206 cannabis companies in Canada. In Q1 2018 alone, over US$1.35 billion was raised across 96 Canadian cannabis companies, reflecting significant forecasted growth and demand. More equity capital has been raised in Canada for cannabis companies than anywhere else in the world with over 50 companies listed on the Canadian exchange.
One of Canada’s biggest banks – CIBC, has estimated that cannabis will be a US$6.5 billion (AUD $8.7 billion) industry by 2020 in Canada.
On 7 June 2018, senators voted to lift Canada’s 95-year-old prohibition on recreational cannabis in a historic-first for full adult-use legalisation. Canada is the first of the G20 countries to have fully legalized cannabis on October 17 2018 for recreational consumption and open sale and distribution to domestic and international markets.
Creso has appointed legal counsel Aird & Berlis LLP and lead broker Echelon Wealth Partners Inc. to advise on the listing. Echelon will lead the dual listing process.
Echelon is a full-service broker/dealer offering investment banking, equity research, institutional sales and trading and retail distribution services. It has raised over US$6 billion since January 2014 and participated in over 200 transactions. In the cannabis space alone, Echelon has raised over US$1.1B and has been an active participant in global cannabis M&A advisory.