In morning trade the Creso Pharma Ltd (ASX: CPH) share price is storming higher following the release of an announcement.
At the time of writing, the cannabis company's shares are up 13% to 26 cents.
What did Creso Pharma announce?
This morning the company announced that it has completed all required importing and exporting procedures and successfully delivered a second shipment of its cannaQIX products to Pharma Dynamics South Africa.
CannaQIX is Creso Pharma's range of cannabidiol (CBD) hemp oil-based nutraceuticals. These products contain a broad spectrum of organic hemp oil extracts with CBD that aims to improve management of stress and to support mental and nervous functions.
This delivery follows the receipt of a second purchase order from Pharma Dynamics in October valued at CHF220,000 (~A$320,000).
Management notes that this money has now been banked and adds to Creso Pharma's growing revenue profile.
What's next?
The company advised that it is confident that additional opportunities will materialise in Africa in the coming months. It continues to work with Pharma Dynamics to establish a broader footprint in the region and anticipates purchase orders to grow in size and volume.
Management commented: "Creso is extremely pleased with the swift timing of the second PO and delivery, demonstrating a healthy relationship and positive patient response. Creso believes there will be more POs from this region in a sustainable way. This underpins Creso's current global growth trajectory and its entry into new markets towards a recurring revenue model."
Balance sheet update.
As of 31 December 2020, Creso Pharma had a cash balance of over $6 million. Since then, the company has received an additional $1.7 million following the exercise of options. Management believes this provides it with the cash required to fund its expansion into new markets.
Furthermore, it believes its balance sheet gives it the foundation to continue to win market share as well as to be in a position to easily capitalise any potential further international growth opportunities.
