The company issued about 30.62 million shares at 6 cents each with a further 3.33 million shares to be issued on June 3 upon receipt of subscription monies of A$200,000.
A remaining tranche of 1.66 million shares in respect of director participation in the placement of A$100,000 will be issued subject to shareholder approval.
Accelerating CBD product growth
Creso will deploy the funds raised from the placement towards accelerating growth across the company’s existing human and animal health CBD (cannabidiol) product lines, repayment of outstanding debt and for general working capital purposes.
The company owns cultivation facilities in Canada and Colombia and is the only ASX-listed company with 100% ownership over a Canadian Licensed Producer.
Creso’s Canadian subsidiary Mernova Medical Inc. has already started generating revenues and is in advanced stages of securing EU GMP certification.
Mernova is positioning itself to become the prime supplier of premium quality CBD and CBD derivatives as the US, European and Canadian markets further mature.
Mernova’s world-class facility currently operates at phase 1 of its production capacity. The company has a 3-phase plan for expanding its facility to 200,000 square feet.
Creso product line
Creso is selling its cannaQIX® food supplement in buccal formulation containing CBD in Switzerland, Liechtenstein, UK, Netherlands, Germany.
In April, Creso delivered anibidiol® Plus, a complementary feed for cats and dogs with natural hemp oil to Virbac SA (EPA:VIRP) in France, generating a revenue of about A$215,000.
Virbac has been distributing the anibidiol® line throughout Europe since 2018 and has successfully expanded its distribution into over 10 countries to date.
Creso is continuing to receive positive feedback from veterinary doctors and pet owners, which reflected in the growth in animal health product sales of over 700% in 2019.
Creso is set to rapidly grow its revenues with further pharma-grade Swiss-made GMP products ready for commercial launch.
Published at Tue, 02 Jun 2020 05:28:00 +0000-Creso Pharma raising A$2.1 million to grow cannabidiol product line for human and animal health