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Creso Pharma (ASX: CPH) is flying high on its international ambition, announcing today that it has raised $3 million to boost sales overseas.
The Sydney-based medicinal cannabis and hemp producer has successfully raised the funds in a placement to institutional and sophisticated investors.
The injection of capital will be used to accelerate sales and marketing efforts of its human and animal products in Europe and Canada, as well as repaying debt.
Canada has become a major hub of activity for the cannabis industry following its nationwide legalisation of recreational cannabis in October 2018.
Creso is one of the major listed Australian companies pushing for a serious slice of the Canadian cannabis market, estimated to be worth $23.6 billion over the coming years by Deloitte analysts.
The country is currently struggling to maintain consistent supply of cannabis, with the government in some cases stepping in to delay the opening of many retail locations around the country.
Experts in the cannabis industry believe that Creso is well placed to capitalise on these developments considering the business has focused on building a diverse gloval business.
This is especially the case because of its three-year supply agreement with TerrAscent Corp to provide premium cannabis product to help meet the significant consumer demand following Canada's legalisation in October, as well as its new 24,000 sq ft. cultivation facility in Nova Scotia.
The company expects to complete the placement and issue the securities on Tuesday 29 January.
Creso Pharma, with its flagship CannaQIX product, was named Australia's number 8 top cannabis company by Business News Australia in October 2018.
Shares in Creso are down 5.56 per cent to $0.51 per share at 11.48am AEDT.
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