Why the Creso (ASX:CPH) share price is racing 6% higher

This cannabis and psychedelics company's shares are racing higher again…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Creso Pharma Ltd (ASX: CPH) share price has been a strong performer this morning.

At the time of writing, the cannabis and psychedelics company's shares are up 6% to 17 cents.

This means the Creso share price is now up 16% since this time last week.

Rising asx share price represented by woman with excited expression holding laptop

Image source: Getty Images

Why is the Creso share price storming higher?

Investors have been buying the company's shares this morning after it released an update on its soon to be acquired Halucenex Life Sciences business.

According to the release, Halucenex has made the strategic decision to expand the recruitment of its phase II Treatment Resistant Post Traumatic Stress Disorder (PTSD) clinical trial.

The release explains that the trial will now include participants that have not served in the military or undertaken roles as first responders.

The decision to expand the trial scope was made following an overwhelming amount of inbound enquiries that the company received from individuals that suffer from debilitating mental health conditions and are seeking alternative treatment methods.

Halucenex expects the addition of non-veterans to the clinical trial will allow it to collate an additional data set. This will provide real world examples of the efficacy of psilocybin when used as an alternative treatment route.

Management commentary

Halucenex's Founder & CEO Bill Fleming commented: "The inclusion of non-veterans in our pending clinical trial is a strategic decision that will provide a number of benefits to Halucenex and Creso Pharma. Following various regulatory shifts in the US and the exacerbating effect COVID-19 has had on mental health conditions across the population, it is becoming more and more apparent that psychedelic treatments could become mainstream in the near future, so to include every day people in our R&D will provide us with examples of how psilocybin can be used more broadly to treat mental health issues."

"Further, expanding the trial scope will add to the growing body of evidence for psychedelic based medicines, and assist the Company as it progresses further research and licensing agreements in North America and more broadly," he added.

This sentiment was echoed by Creso's Non-executive Chairman, Adam Blumenthal.

He said: "Halucenex's management continue to make steps towards creating psychedelic compounds and therapeutics that can be used for both veterans and first responders, as well as every day individuals. To broaden the clinical trial participant scope, is a very promising development and will lay a very strong foundation for the Company as it pushes towards becoming a best-in-class provider of cannabis, cannabinoids and psychedelic alternative medicines, to meet the growing need for treatments to improve wellbeing."

James Mickleboro does not own Creso Pharma shares. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors had a rough start to the week.

Read more »

Three people with gold streamers celebrate good news.
Gold

Guess which ASX gold stock is leaping 22% in Monday's sinking market?

Investors are piling into this junior ASX gold stock on Monday. But why?

Read more »

Winning woman smiles and holds big cup while losing woman looks unhappy with small cup.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough end to a tough week.

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Gainers

3 ASX 200 stocks screaming higher in this week's sinking market

Investors sent these three ASX 200 stocks surging this week despite the broader market retrace. But why?

Read more »

A female athlete in green spandex leaps from one cliff edge to another representing 3 ASX shares that are destined to rise and be great
Share Gainers

Guess which ASX lithium share is leaping 14% in Friday's sinking market

Investors are piling into this small-cap ASX lithium miner today. But why?

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Ampol, Atlantic Lithium, Brightstar, and Premier Investments shares are rising today

These shares are ending the week on a positive note. But why?

Read more »

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrid day on the markets.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EBR, EOS, Racura, and Woodside shares are rising today

These shares are avoiding the market selloff.

Read more »