The Creso Pharma Ltd (ASX: CPH) share price has pushed higher this morning after the release of a positive announcement out of the cannabis company.
In morning trade the Creso Pharma share price is up almost 3% to 37.5 cents.
What did Creso Pharma announce?
This morning the company announced that its wholly-owned subsidiary Mernova Medical has been granted a licence to process cannabis by Health Canada.
This processing licence expands Creso Pharma's offerings beyond the cultivation and sale of dried flower and enables it to produce and wholesale distribute cannabis oils, concentrates, and other derived products in Canada and overseas.
The Mernova cannabis facility has been operating and producing high-quality dry flowers of two unique strains of cannabis since early in 2019. It has multi-year sales agreements in place, with the first commercial delivery of its dried flower shipment from the facility completed in early July 2019.
The release advises that Creso Pharma's forecast for an estimated 700kg of dried flower production at the facility by year-end is well underway and a further production capacity increase to 4,000kg annually is also progressing as planned.
Creso Pharma CEO and co-founder, Dr Miri Halperin Wernli, said: "The processing licence strengthens Creso Pharma's foothold in North America and significantly broadens our ability to deliver at a time when the world is watching Canada as the country gears up for 'cannabis 2.0'. Having the capability to process and distribute oils, extracts and other derived products out of the Canadian facility enables Mernova to potentially secure the supply of raw materials, product production and delivery to markets where supply is scarce and demand is higher than ever before."
Whilst this is a positive development, its shares won't be heading notably higher from here as it has already entered into a definitive agreement with Canadian cannabis company PharmaCielo which will see Creso Pharma acquired in an all scrip deal that originally valued it at $122 million.
Elsewhere in the industry today, the Althea Group Holdings Ltd (ASX: AGH) share price is down 5% and the Cann Global Ltd (ASX: CGB) share price is down 3% despite there being no news out of either company.
