The Creso Pharma Ltd (ASX: CPH) share price could be on the rise this morning after the cannabis company released a positive update.
What did Creso Pharma announce?
This morning Creso Pharma announced the signing of a comprehensive distribution agreement with Medleaf Therapeutics for the exclusive distribution of Creso's cannaQIX 50 and 10% CBD Oil in New Zealand.
CannaQIX 50 is Creso Pharma's proprietary buccally formulated cannabidiol lozenge which is designed to support the management of chronic pain.
According to the release, the agreement is effective until December 31 2022 and expands the range of medicinal cannabis products which MedLeaf initially anticipated to source through Creso Pharma. It includes minimum purchase targets and Creso can terminate the agreement with 6 months' notice if these targets are not met.
Creso Pharma's CEO and co-founder, Dr. Miri Halperin Wernli, was pleased with this latest agreement.
She said: "The evolving regulatory situation in New Zealand is providing a solid foundation on which to build this close relationship with MedLeaf. We're pleased with our progress to date and encouraged to see a wide range of new opportunities opening up to bring life-improving products to patients in New Zealand."
Courtney Letica, the CEO and founder of Medleaf, was equally pleased. He said, "Our ultimate aim is to develop a world class, New Zealand-based cannabis business with leading research and development, cultivation, extraction and product development capability."
Adding: "After three years of patient advocacy, Medleaf Therapeutics is proud to leverage this great relationship with Creso Pharma to bring greater choice to New Zealanders. With the environmentally sustainable, outdoor sun-grown crops from PharmaCielo and great product development of Creso Pharma, this partnership will see an opportunity for New Zealanders to gain access to affordable, highest quality, broad spectrum, GMP products."
This announcement is just the latest in a series of positive developments in the industry this year from Creso and rivals such as Althea Group Holdings Ltd (ASX: AGH) and Auscann Group Holdings Ltd (ASX: AC8). This could make it worth keeping a very close eye on the industry in FY 2020.
