The Creso Pharma Ltd (ASX: CPH) share price has started the week on a positive note.
In early trade the cannabis company's shares are up over 9% to 17.5 cents.
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Why is the Creso Pharma share price jumping higher?
This morning Creso Pharma announced that it has secured regulatory approval from the Ministry of Agriculture and Animal Feed in Uruguay through its commercial partner Adler Laboratories for its line of animal health products, anibidiol.
According to the release, the company expects the first purchase order for anibidiol 8 (worth A$89,000) to be delivered in the first quarter of 2021. Management notes that this underpins the company's growing revenue profile in the Latin America (LATAM) region.
What is anibidiol?
Anibidiol is a cannabidiol (CBD) hemp-based complementary feed for pets which the company claims promotes well-being by supporting the immune system and natural response.
The company also claims that it supports behaviour balance, overall vitality, the nervous system, and contributes to the reduction of tiredness and fatigue.
Today's news means it is the first product of its kind that has been approved for pets in LATAM. Management believes this represents a ground breaking milestone from a regulatory and business perspective.
The approval also represents a key strategic milestone, which broadens the company's global footprint.
Management believes the LATAM market provides a large opportunity for Creso Pharma and unlocks potential access to over 24 million pets across Uruguay, Argentina, Paraguay and Bolivia and further countries.
Creso Commercial Director, Jorge Wernli, commented: "The approval of anibidiol as the first CBD hemp complementary feed in Uruguay, with a simultaneous purchase order is a major achievement for Creso Pharma. "The Company's entry into the Latin American market more broadly represents a major strategic development and significant growth opportunity, with potential access to millions of pets across several Latin American countries."
"We look forward to working with our established, in country representatives to target rapid expansion across the region. We anticipate a number of follow up purchase orders will materialise in the coming months, as we rapidly scale up in Latin America," he concluded.
