William C Goodin
Posted by William C Goodin on Jun 15, 2019 9:00:00 AM

PharmaCielo to Acquire Global Medical Cannabis Company Creso Pharma for $122 Million

 

Creso+Pharma+Logo+Text+RightPharmaCielo Ltd. (TSXV: PCLO) recently announced that it was entering into a scheme implementation agreement in which it will acquire all the issued and outstanding share and listed options of Creso Pharma Ltd. (ASX: CPH), for an aggregate purchase price of approximately A$122 million.

Creso Pharma is an international company which specializes in the development and production of medical cannabis products. PharmaCielo will pay a 50 percent premium over the closing trading price of the Creso Pharma shares on May 31, 2019, or A$0.63 per share. The deal was unanimously approved by the board of directors of PharmaCielo and Creso Pharma.

Deal Highlights:

Upon closing of the Acquisition, the combined company is expected to benefit from the complementary assets and synergies between PharmaCielo and Creso Pharma including:

  • Creso Pharma’s world-class Swiss-led team, with over 150 years of collective experience in the Pharma, Food and Cannabis industries.
  • Creso Pharma has commercialized four proprietary branded products in less than two years, including both human and animal health focused CBD-based nutraceuticals and complementary feed products.
  • A pipeline of four additional products to be commercialized in 2019 by Creso Pharma, adding both additional proprietary formulations and delivery technologies to the “Swiss Made” GMP compliant, pharma grade pipeline.
  • Creso Pharma active sales in thirteen countries including Australia, New Zealand, Brazil, Switzerland, Germany, France, the Netherlands and the United Kingdom complements PharmaCielo’s networks in South America, Mexico, and Italy.

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  • Expand substantial range of proprietary strains currently registered for commercial cultivation through combination of industry leading Israeli R&D cultivation facility with Colombia R&D cultivation facility.
  • Establishment of dual-market licensed cultivation and processing facilities (Canada and Colombia) designed and constructed to comply with EU GMP standards will expand capacity for import and export of CBD material and products and medicinal grade cannabis production and products to multiple global markets.
  • Continued participation by Creso Pharma shareholders in a global medicinal cannabis company with greater capitalization enabling aggressive market and sales development.
  • Creso Pharma supply offtake agreement in place with Canadian distribution network establishes ongoing product revenue stream.

“PharmaCielo’s Acquisition of Creso Pharma, harnessing the synergies between us, creates a combined company that is poised to become a global powerhouse in the medicinal cannabis industry. Upon closing of the transaction, the combined company will quadruple our global footprint with presence in more than a dozen countries spanning North and Latin America, Switzerland, Europe, the Middle East, Australia and New Zealand.” David Attard, CEO of PharmaCielo.

With the Acquisition of Cresco Pharma, PharmaCielo is expected to increase its global reach with a presence in more than a dozen countries spanning the globe.

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Tags: Health, Legalization, Acquisition, Cannabis Market, International Cannabis News

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