The Motley Fool

Cannabis company Creso Pharma announces New Zealand distribution agreement

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.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.