The Creso Pharma Ltd (ASX: CPH) share price has been amongst the biggest movers on the market this morning.
In late morning trade the medicinal cannabis company's shares have emerged from their trading halt and are up 4.5% to 57.5 cents.
What happened?
On Wednesday Creso placed its shares in a trading halt pending an announcement in relation to a material acquisition in Canada.
This morning the company revealed that it plans to expand into the Canadian market with the acquisition of emerging Nova Scotia-based medicinal cannabis producer Mernova Medicinal Inc.
According to the release, Creso will pay a total C$10.1 million (A$10.2 million) in cash and equity to acquire Mernova.
Should the acquisition complete successfully, it will mean Creso is the first Australian pot stock with direct exposure to the world's largest legal medicinal cannabis market.
Furthermore, the fully-funded acquisition will allow Creso to pursue opportunities in Canada's soon to be legalised recreational cannabis space.
Importantly, it will also give Creso the ability to rationalise and vertically integrate its supply and production chain through the construction of its own 20,000 square foot Good Manufacturing Process cultivation facility.
Should you invest?
This is a big step forward for the company in my opinion and I can't say I'm surprised to see its shares climb higher.
As I've said a few times before, I think Creso is up there with Auscann Group Holdings Ltd (ASX: AC8) as one of the best options in the growing pot stock industry.
However, there is still a long road ahead for both companies before they run profitable operations. Because of this I would suggest investors keep their powder dry and instead put them on their watchlists and keep a close eye on their progress.
