The Creso Pharma Ltd (ASX: CPH) share price is on the move on Thursday. This comes as the cannabis and psychedelics company released a positive trading update for Q4 FY21.
During early afternoon trade, Creso shares are swapping hands for 14.8 cents apiece, up 1.72%.
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What did Creso announce?
According to the release, Creso advised that it has recorded strong revenues from its Swiss operations in the current fourth-quarter.
To date, the division's revenue has soared past $0.8 million, which is a 126% increase compared to the last quarter. Underpinning the performance, Creso experienced an uptick in human health CBD and medical cannabis product sales from Swiss-based company, Cannahealth.
Creso Pharma entered into a strategic collaboration agreement with Cannahealth, for the supply of hemp and cannabis plant material. The latter will also provide marketing and sales of Creso's products in Switzerland.
Both parties are discussing the potential of extending Creso's reach into other countries in Europe.
The initial term of the agreement is valid for 1-year and automatically renews unless terminated by either company.
In addition, Creso has expanded its sales pipeline over recent months and anticipates additional purchase orders through its Swiss operations. Furthermore, wholly-owned Canadian subsidiary, Mernova Medical Inc. is also expected to provide a boost in sales in the near term.
Creso's cannaDOL launch campaign is now being delivered to more than 2,500 retailers across Switzerland. The products are being distributed to several key pharmacies which could lead to rapid growth for the company. Other distribution sites include drugstores, fitness centres, and e-commerce channels.
Creso non-executive chair, Adam Blumenthal commented:
We anticipate that revenue will continue to increase over the remainder of Q4 2021, when additional purchase orders across Switzerland and Canada materialise. The company has a number of business development initiatives underway and remains committed to significantly growing its sales pipeline through international expansion efforts and partnership agreements.
About the Creso share price
Over the past 12 months, the Creso share price has rocketed 361%, reflecting positive investor sentiment. The company's shares reached a 52-week high of 47 cents in early December 2020. Lawmakers in the United States passed a bill to decriminalise cannabis on a national level, which shot up Creso shares.
Based on today's price, Creso presides a market capitalisation of roughly $177.96 million, with approximately 1.2 billion shares outstanding.
