Creso Pharma raising A$2.1 million to grow cannabidiol product line for human and animal health

By Deputy Chief EditorJune 2, 2020

125 1 minute read

Creso Pharma Ltd (ASX:CPH) (FRA:1X8) (OTCMKTS:COPHF) has issued shares worth A$1.837 million of the A$2.137 million placement to institutional and sophisticated investors announced on June 1, 2020.

The company issued about 30.62 million shares at 6 cents each with a further 3.33 million shares to be issued on June 3 upon receipt of subscription monies of A$200,000.

A remaining tranche of 1.66 million shares in respect of director participation in the placement of A$100,000 will be issued subject to shareholder approval.

Accelerating CBD product growth[hhmc]

Creso will deploy the funds raised from the placement towards accelerating growth across the companys existing human and animal health CBD (cannabidiol) product lines, repayment of outstanding debt and for general working capital purposes.

The company owns cultivation facilities in Canada and Colombia and is the only ASX-listed company with 100% ownership over a Canadian Licensed Producer.

Cresos Canadian subsidiary Mernova Medical Inc. has already started generating revenues and is in advanced stages of securing EU GMP certification.

Mernova is positioning itself to become the prime supplier of premium quality CBD and CBD derivatives as the US, European and Canadian markets further mature.

Mernovas world-class facility currently operates at phase 1 of its production capacity. The company has a 3-phase plan for expanding its facility to 200,000 square feet.