The Creso Pharma Ltd (ASX: CPH) share price isn't going anywhere on Thursday. This comes after the cannabis and psychedelics company requested a trading halt in the minutes during market open.
As such, Creso Pharma shares are frozen at 13 cents apiece. It's worth noting the company's shares have gained 13% in the past week.
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Why are Creso Pharma shares in a trading halt?
Creso Pharma shares were placed in a trading halt this morning pending an important announcement from the company.
In a statement to the ASX, Creso Pharma said the announcement is regarding the receipt of a material licence from Health Canada.
While no further details have been given, Creso Pharma's wholly-owned subsidiary, Mernova, was yesterday granted a licence extension to sell medicinal cannabis in Canada.
The news sent the Creso Pharma share price as high as 14 cents, however some profit taking occurred. Its shares ended the day 4% higher at 13 cents.
The green light allows Mernova to expand its sales base by entering the medicinal cannabis market in Canada. In May 2020, the company had received a recreational market licence from Health Canada.
Under the new licence, Mernova can sell its products directly to consumers who are licenced to obtain cannabis for medical purposes. In the past, Health Canada had only allowed the company to sell its medicinal products through wholesalers.
The shares will remain in pre-open until an official announcement is made or the start of trade on Monday 16 August, the company said.
Creso Pharma share price summary
Since this time last year, the Creso Pharma share price has risen sharply by more than 200%. However, in 2021, the company's shares paint a different picture for investors, down almost 30%.
Creso Pharma has a market capitalisation of roughly $155.5 million with approximately 1.2 billion shares on its registry.
