The Creso Pharma Ltd (ASX: CPH) share price has come under pressure today despite the release of a positive announcement.
At the time of writing, the cannabis company's shares are down 5% to 20 cents.
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What did Creso Pharma announce?
This morning Creso Pharma announced an important appointment in the United States.
According to the release, the company has named leading cannabis executive John Griese as its Director of US Business Development.
Mr Griese has considerable experience in the cannabis sector through previous roles with Blooms Farms and most recently as the Chief Operating Officer of Supreme Cannabis Company.
With the latter, Mr Griese was directly responsible for product development, commercialisation initiatives, procurement, manufacturing operations, and supply chain management.
The new US Business Development Director has also previously worked for Creso Pharma as its Americas Chief Operating Officer.
Why is Creso Pharma making this appointment?
Creso Pharma made the appointment in response to the global trend towards cannabis legalisation, as well as recent legislation in New York State legalising recreational marijuana.
Mr Griese will focus on New York, Vermont, and other states to delineate a strategy for Creso Pharma to begin delivering products into the USA.
This is certainly a worthwhile endeavour. The release notes that New York State is expected to become one of the largest recreational markets in the US with an estimated market value of US$4.2 billion per annum.
The company notes that its ability to export cannabis products into the USA will remain subject to the federal legalisation of cannabis. However, having Mr Griese commence supply, sale, distribution and partnership agreements now, pending federal legalisation, provides the company with an opportunity to be a first mover in this large market. It also believes it will provide it with a significant competitive advantage over its peers.
Creso's Non-Executive Chairman, Adam Blumenthal, commented: "We are very excited to welcome John back to Creso and Board and management are very confident that his new role will unlock a number of potential opportunities for the Company throughout the US."
"The recent legislative push in New York State highlights the ongoing shift towards the federal legalisation of recreational cannabis and John's appointment shows Creso Pharma's commitment to establishing a strong foothold in-country to unlock value for our shareholders."
"To already have boots on the ground in the US will provide the Company with a key advantage over our competition. John has established relationships in the US market through his roles in California and Toronto and we look forward to leveraging his network in the coming months."
