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MEDICINAL cannabis company Creso Pharma (ASX: CPH) has broken into the North American market with the acquisition of Canadian cannabis production company Mernova Medicinal in exchange for $10.2 million worth of cash and equity.
Creso's deal means it will be the only Australian cannabis company with direct access to the world's largest medicinal cannabis market and will allow it to produce its own products in Canada.
The company, which develops treatments for both humans and animals, has offices in Perth, Sydney and Switzerland all working to develop non-psychoactive cannabinoid-based products to assist with health and relieve conditions including pain, anxiety, metabolic disorders and inflammatory disorders.
CEO and Co-Founder of Creso Pharma Dr Miri Halperin Wernli says the acquisition will provide the company with opportunities for expansion, manufacturing, innovation and exportation.
"This move gives Creso a number of strategic benefits, not only when it comes to expanding to overseas markets, but also when it comes to cultivating and manufacturing our own innovative medicinal cannabis products," says Wernli.
"We're also looking forward to pursuing further opportunities in the Canadian market, when it comes to both local distribution and exporting to other countries such as Australia that already accept medicinal cannabis imports."
Canadian legislation requires companies to prove they can cultivate cannabis crop before they can be issued a cultivation license which Mernova Medicinal has applied for and is expected to receive as the first in the Canadian Nova Scotia district.
If all goes to plan the first cannabis crop is expected to be produced in a year and the revenue potential for the first crop alone is predicted to be worth between $15.9 million and $31.8 million per annum.
Business News Australia
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