The Creso Pharma Ltd (ASX: CPH) share price is edging higher in mid-afternoon trade following its new CBD product launch. At the time of writing, the cannabis company's shares are trading at 21 cents, up 2.5%.
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Product launch
Investors appear pleased with the company's plans to strategically launch its new products, sending Creso shares higher.
According to its release, Creso advised it has launched three new CBD-based tea products in Switzerland, and potentially Germany.
Recognised under the established cannaQIX brand, the new products include cannaQIX tea, cannaQIX NITE tea, and cannaQIX Immunity tea. The three new products were developed based on the company's second-generation innovation technology. These products are focused on improving content and also taste. In addition, Creso is seeking to expand its target customer base into the mainstream convenience food and beverage market.
Following the successful completion of its legal and regulatory requirements, the company's tea products will be sold throughout Switzerland. Creso will utilise its extensive distribution network of over 2,100 points of sales to target the adult beverage market. This will consist of pharmacies, drugstores, health nutrition shops, and large retail groups including leading department store chain Manor. In addition, Creso will also supply major wholesalers such as Galexis, Amedis, and Voigt with CBD-based tea products.
Since the German Federal Court of Justice ruled to annul previous charges against hemp tea sellers, Creso will look to launch its new CBD-based teas within the country. It hopes to actively market and sell its products without further regulatory approvals or hurdles, opening up the German market.
Once both countries have successfully rollout the cannaQIX products, Creso noted it will look to expand into other European markets.
Management commentary
Creso commercial and development director Dr. Gian Trepp commented:
We are proud to have completed the finalisation of this ground breaking technology for our new CBD tea products, which opens a number of new and globally applicable opportunities for Creso Pharma. The new products and formulation provide a very tasty CBD tea that will become a key component in the future production of the cannaQIX lozenges.
About the Creso share price
Over the past 12 months, the Creso share price has rocketed to almost 250%, reflecting positive investor sentiment. The company's shares reached a 52-week high of 47 cents in early December after the United States passed a bill to decriminalise cannabis on a national level.
On valuation grounds, Creso commands a market capitalisation of roughly $205 million, with 1 billion shares on issue.
