The Creso Pharma Ltd (ASX: CPH) share price is on form again on Friday morning.
At the time of writing, the cannabis and psychedelics company’s shares are up 5.5% to 19.2 cents.
This means the Creso share price is now up a massive 35% in the space of just two days.
Why is the Creso share price racing higher?
Investors have been scrambling to buy Creso’s shares since the release of an announcement on Thursday.
That announcement revealed that the company is planning to expedite a Californian psychedelics market entry following the recent passing of Senate Bill 519.
Senate Bill 519, which remains subject to further regulatory approval from California’s lower house and the Governor of California, could make a wide range of psychedelic substances, including psilocybin, legal to use and possess for adults over the age of 21.
Creso is well-positioned to benefit from the regulatory shift through its soon-to-be acquired Halucenex Life Sciences business.
Halucenex specialises in psychedelic compounds and recently announced that had secured additional pharmaceutical grade psilocybin supply. This made it one of the largest holders of single batch GMP grade synthetic psilocybin in Canada.
Creso’s non-executive Chairman, Adam Blumenthal, commented: “This is a major development for Creso Pharma and Halucenex and provides a key strategy piece, which will underpin our expansion into the US market. Over the recent months, we have made a number of US focused appointments and Halucenex have secured multiple partnerships and agreements that will allow the Company to pursue the US psychedelics market and become a first mover in the sector.”
What else is supporting its shares?
Also giving the Creso share price a boost was the release of yet another announcement this morning.
Today’s announcement, its eighth in the space of a month, reveals that the company has extended its distribution agreement with Route 2 Pharm to allow for distribution of Creso’s products into Ecuador. This means the agreement now extends to 14 countries
Management commented: “Ecuador provides a large market opportunity for Creso Pharma as it recently passed legislation to approve the production, commercialisation, use and consumption of cannabis for medicinal or therapeutic treatment. The country has a population of over 15m and is part of the rapidly emerging medicinal cannabis market in the Latin American and Caribbean region, which has an estimated population of 655mii. Creso is confident that Ecuador will provide it with a strong foothold in the rapidly growing Latin American market, which is expected to grow to over US$300m in value by 2024.”