Creso Pharma [ASX:CPH] is up 6% at the time of writing. It’s now trading around 52 cents. That means it’s now up 60% from the low of 33 cents it hit in December 2018.
Creso Pharma is one of the Aussie small-cap stocks focusing on the cannabis sector. Interest and growth in cannabis is exploding worldwide.
Today, the company released an announcement.
What’s the news behind this price move?
Creso Pharma announced that it has signed a supply agreement with a Canadian cannabis company called TerrAscend Canada.
TerrAscend has agreed to purchase 100 kilograms of cannabis flower per month from Creso. This comes into effect as soon as all the Canadian regulatory requirements are met.
Creso has now completed a cultivation facility that can produce 4,000 kilograms of cannabis annually.
What are some further tailwinds for this business?
Creso also produces several products that use the cannabis extract CBD. Last year, these received a major boost when hemp was removed from the US Controlled Substances Act as part of the 2018 Farm Bill.
This now opens up further opportunities across North America.
This article is not an endorsement of Creso Pharma or a recommendation to buy and sell. It’s an observation that it announced positive news today only.
One idea is to include Creso on a watch list and watch for further announcements to gauge the progress of the company from here, especially around its cannabis products.