Creso expands into Canada with Mernova buy

Creso Pharma Limited (ASX: CPH) has expanded into the Canadian market with the proposed acquisition of emerging Nova Scotia-based medicinal cannabis producer, Mernova Medicinal Inc for a total of C$10.1 million (A$10.2 million) in cash and equity.

This will see CPH become the only Australian cannabis company with direct exposure to the world’s largest legal medicinal cannabis market. The fully-funded acquisition also establishes a Canadian presence while pursuing opportunities in the medicinal, and soon to be legalised, recreational cannabis space.

Financial consideration for Mernova involves three milestone cash payments of C$1.8 million and three milestone issues of CPH’s shares to the value of C$8.3 million.

Milestone payments will coincide with settlement of the acquisition, planting of the first crop by Mernova and the granting of the sales licence to Mernova by Health Canada.

The acquisition brings operational benefits as it provides CPH with the ability to rationalise and vertica…

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