Creso Pharma (ASX:CPH) has signed its first letter of intent in Australia for the import and sale of medical cannabis products in the Australian market.
The move follows the legalisation of medical cannabis by the Federal Government in Australia last year and a supportive statement by the prime minister to initiate medical cannabis imports alongside building the local medical cannabis industry.
Creso has partnered with Western Australia-based pharmaceutical group, Health House International, for importing and selling medical cannabis products.
Coincidentally, fellow medical cannabis company Auscann Group Holdings (ASX:AC8) debuts on the ASX today.
Creso recently opened an office in Sydney, giving the company a presence on Australia’s east coast, adding to its existing office in Perth.
Health House International will initially conduct a trial import of cannabis oil products from Canadian-based third-parties introduced by Creso.
If the trial is successful, the parties have agreed to enter into an agreement for an initial two-year term, subject to Health House importing the agreed minimum quantities.
Creso will act as the exclusive facilitator for the import of the products into Australia and earn a facilitation fee on each Health House import.
Once imported, Health House International will look to distribute the products to Australian patients that can buy medical cannabis under the new Australian law.
Creso is a pioneer in cannabidiol (CBD) innovation and develops cannabis and hemp-derived therapeutic-grade CBD nutraceuticals and medical cannabis products for human and animal health.
The company started trading on the ASX in October 2016 following a successful A$5 million capital raising that was significantly oversubscribed.
Creso is well funded with a cash balance of about $3 million as at 31 December 2016.