PharmaCielo to acquire fellow cannabis company CresoPharma
Canadian PharmaCielo has announced it is to acquire the Australian cannabis company Creso Pharma for AU$122mn (US$85.1mn).
PharmaCielo is the parent company of the Colombian cultivator and producer of medicinal-grade cannabis oil, PharmaCielo Colombia Holdings. Creso Pharma is a medicinal cannabis company specializing in research and development, making products in the therapeutic, nutraceutical and animal health sectors. In the past two years they have launched four commercial products for humans and animals, with four more to be commercialized in 2019.
"PharmaCielo's acquisition of Creso Pharma, harnessing the synergies between us, creates a combined company that is poised to become a global powerhouse in the medicinal cannabis industry,” said David Attard, CEO of PharmaCielo. “Upon closing of the transaction, the combined company will quadruple our global footprint with a presence in more than a dozen countries spanning North and Latin America, Switzerland, Europe, the Middle East, Australia and New Zealand. The Acquisition affords us the opportunity to bring our high-quality Colombian oil production to market immediately and expand into higher-margin, branded product sales faster by harnessing the expertise of a proven and highly engaged commercialization team possessing both an immediately available product portfolio and active international sales channels."
The move was unanimously approved by the board of directors of both companies. The deal will see PharmaCielo is pay AU$0.63 per share, a premium of 50% over the closing trading price of Creso Pharma shares at the end of May.
Dr. Miri Halperin Wernli, Co-Founder and CEO of Creso Pharma, said: "The quality and scale of PharmaCielo's cultivation and oil extraction operations in Colombia complements our focus on meeting global demand for the highest quality CBD and THC based therapeutic, nutraceutical and animal health products through increased access to the necessary quality and volume of oil production. This arrangement with PharmaCielo is an incredible opportunity for Creso Pharma shareholders to benefit from being part of a best in class and well-capitalized global medicinal cannabis company."
PharmaCielo is listed on the TSXV under the symbol “PCLO”, while Creso Pharma is on the ASX under the symbol “CPH”.