Creso Looks to Capitalize on Domestic & Foreign Legislation

The cannabis industry is driven primarily by legislation—whether it’s the legalization of adult-use cannabis across a growing number of countries or more nuanced legal moves. Over the past few months, two pieces of legislation could have a significant impact on the global cannabis industry: The passage of the 2018 Farm Bill in the United States and the legalization of medical cannabis exports in Israel.

Creso Pharma Inc. (ASX: CPH) aims to become one of the world’s most trusted supplier of cannabis and hemp-derived products by combining pharmaceutical rigor, good manufacturing practices (GMP) standards, and proprietary delivery technologies.

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Farm Bill Legalizes Hemp-based CBD

The 2014 Farm Bill opened the door to state-regulated pilot programs for planting industrial hemp, which contains less than 0.3 percent tetrahydrocannabinol (THC). Four years later, the 2018 Farm Bill legalized the nationwide production of hemp and removed hemp-based cannabidiol (CBD) from Schedule I of the Controlled Substances Act. Hemp will become an agricultural commodity that’s regulated by the U.S. Department of Agriculture.

The Food and Drug Administration (FDA) is expected to issue its own guidance on CBD over the coming months following its removal from the Controlled Substances Act. With the approval of GW Pharmaceutical plc’s (NASDAQ: GWPH) Epidiolex earlier in 2018, the agency has shown signs of openness despite the Drug Enforcement Administration’s (DEA) hardline approach to CBD in the past—when it had jurisdiction.

The market for hemp-based CBD will reach an estimated $600 million in 2018, according to Brightfield Group, and those figures could exceed $22 billion by 2022. CBD has already appeared in everything from bottled water to dog treats. There appear to be many potential benefits of CBD, both as a nutritional supplement and as a pharmaceutical ingredient designed to treat a wide range of medical conditions.

Creso Pharma aims to become a leading supplier of hemp-based CBD products to the U.S. and different markets around the world. By leveraging their deep team of pharmaceutical experts and bringing a pharma grade approach to quality, the company provides much-needed consistency and a range of delivery formats, including therapeutics, nutraceuticals, animal health complementary feeds, topicals, and lifestyle brands. These products have been initially launched in Switzerland, followed by a number of other jurisdictions in Europe and NZ, and are poised to expand further to additional countries around the world. With the new 2018 Farm Bill Creso now has a significant market opportunity in the US with its CBD brands.

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 Creso’s CBD Hemp-Derived Products

• cannaQIX® is a buccal lozenge in a proprietary delivery technology which enhances the absorption of CBD and comes in a variety of dosages. It is currently sold in Switzerland, the UK and the Netherlands through pharmacies and in New Zealand as medicinal cannabis prescribed by physicians.
• anibidiol® in a proprietary granule formulation comes in various doses for a range of small and large animals and is sold through veterinary networks in seventeen countries around the world.
• cannaDOL® is a new topical ointment with CBD and selected essential oils and is intended for use by athletes to help alleviate pain and inflammation. The blend of CBD and additional ingredients is unique to Creso Pharma.

Israel Opens Door to European Cannabis

 Israel recently approved a law to permit the export of medical marijuana, which could open the door to a $4 billion market. With its centralized location, liberal laws, and extensive research and development infrastructure already in place, the country could become a leading destination for both domestic and international companies looking to export products across Europe’s nascent cannabis market.

In a country known to Wall Street as “Start-up Nation”, Israel is perfectly positioned to expose and take advantage of the growing opportunities in the sector.  Importantly, Israel has the human capital, research know-how, skill base and start up mentality to excel and lead the field. With the new law passing Parliament the way is paved for cannabis to potentially become as important to Israel’s economy as technology.

Creso is well positioned to take advantage of these changes via its 74% stake in a Joint Venture with Israeli-based Cohen Propagation Nurseries Ltd., which is converting existing greenhouses into IMC-GAP cultivation facilities to international standards.. As one of the most experienced agriculture companies in Israel, the company has 550 highly-trained staff working on 15.7 hectares of greenhouses. Medical cannabis products at the facility will be grown with unique therapeutic strains developed after years of research. Creso is the only ASX traded company with operations in Israel and one of only a few Licensed Producers in Canada with access to Israeli strains.

The company has also built up a portfolio of other cultivation facilities around the world. In particular, the company acquired Nova Scotia-based Mernova Medical Inc., which has a 24,000 sq. ft. purpose-built state-of-the-art indoor cannabis grow facility. Management anticipates that the first sales will be made to the Canadian domestic market in Q1 2019 with the potential to expand to 200,000 sq. ft. over time.

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Looking Ahead

Creso Pharma Inc. (ASX: CPH) is well positioned to capitalize on the global cannabis industry—including legislation in both the U.S. and Israel. Investors looking for a diversified cannabis conglomerate with a wide range of leading brands may want to take a closer look.

The company plans to list on the TSX Venture exchange in early-2019, which could also open the door to new investors across North America.

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For more information, visit the company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.