The Creso Pharma Ltd (ASX: CPH) share price is soaring this morning, trading 9% higher at 12 cents apiece at time of writing.
Below, we take a look at the ASX cannabis share's quarterly results for the period ending 30 June (Q2)
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What quarterly results did Creso report?
The Creso Pharma share price is soaring after the company reported a second consecutive quarter of record revenue growth.
Revenue came in at $1.63 million, up 18% from the first quarter of 2021 and up 451% year-on-year.
The company's Canadian cultivation and sales division, Mernova Medicinal Inc, reported a 21% increase in revenue over the previous quarter, to $966,000. It noted an ongoing shift towards a recurring revenue model with orders from returning customers and province partners.
With its acquisition of Halucenex Life Sciences Inc completed following the end of the quarter, Creso Pharma reported it's now the "first ASX-listed company with a 100% owned psychedelics subsidiary". It estimated the addressable market for psychedelic medicines to be worth some US$100 billion.
On the balance sheet, as at 30 June, the company had cash reserves of $13.6 million.
Cash reserves increased by $2.5 million to approximately $16 million as at 31 July as some 50.5 million options were exercised into fully paid ordinary shares. Creso expects that additional outstanding options, worth roughly $5 million, will be exercised over the next months, providing it with extra working capital.
What did management say?
Commenting on the results, Creso's non-executive chairman Adam Blumenthal said:
This quarter solidified Creso Pharma's intent to become a world leader in the psychedelic, CBD, and recreational and medicinal cannabis space. The successful acquisition of Halucenex is a major milestone for the company, as it looks to commercialise new psychedelic-assisted psychotherapy treatments in the future.
The merger with Red Light Holland to create The HighBrid Lab presents an opportunity to take advantage of several synergies available across the businesses, allowing the combined company to considerably scale up operations in both the near and long term.
Blumenthal highlighted Creso's successful listing on the US over-the-counter (OTC) market. "This provides the company with exposure into a deep and liquid pool of North American investors," he said.
Noting the continuing push towards legalisation in the US on a state-by-state basis, Blumenthal added, "The ever-changing regulatory landscape in the US will allow us to pursue synergies for the HighBrid Lab and scale up activities to further commercialise our business divisions."
Creso Pharma share price snapshot
Over the past 12 months, the Creso Pharma share price has leapt 290% higher, compared to a gain of 27% on the All Ordinaries Index (ASX: XAO).
Year-to-date, however, Creso Pharma's share price has gone the other direction, down 35% in 2021.
