Creso pharma

Creso Pharma surges on back of US bill to decriminalise cannabis

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Over the past month, Creso Pharma (ASX:CPH) has surged more than 635% on the back of continuous positive announcements from the European and American cannabis markets.

Most recently, the past week has seen the US House of Representatives pass the Marijuana Opportunity Reinvestment and Expungement (MORE) Act which is set to decriminalise cannabis on a federal level, as well as expunge the records of many with previous cannabis convictions.

The news comes after the United Nations Commission on Narcotic Drugs gathered last week at their 63rd Session held in Vienna. The meeting considered a number of proposals put forward by WHO early last year, one of which included that cannabis and cannabis resin be removed from Schedule 4 of the Single Convention on Narcotic Drugs.

Of the five proposals put forward, it was the only one to pass – with 27 in favour, 25 against, and 1 absentee.

It made front page headlines around the world, with many governments, organisations, and people welcoming the change. The move was welcomed as it was previously positioned alongside narcotics such as heroin, which is considered to be a far more dangerous drug to public safety.

Creso Pharma has positioned itself wonderfully to benefit from the two announcements.

Creso’s Canadian subsidiary, Mernova Medicinal is situated a short distance away from the US border, which has been built to allow rapid scalability should US demand see a quick increase. Mernova currently operates a 24,000 square foot growing facility.

Co-founder and Director Mr Boaz Wachtel welcomed the announcements and believes it leaves Creso in a strong position for continued growth.

This is a historic ruling that has the ability to create significant growth opportunities in our burgeoning industry. Creso is very well positioned to capitalise on opportunities arising from the market in the USA, including expanding distribution of its existing cannabis products through the scale up its operations in Canada and Switzerland.

The two positive announcements come after Creso recently brought on Bruce Linton, one of the Co-Founders of Canopy Growth. Linton helped Canopy Growth rise to a $20 billion cannabis company, and brings with him crucial experience in the global cannabis industry.

Australia’s TGA is also considering down-scheduling low-dose CBD oil from Schedule 4 to Schedule 3. This would allow consumers to purchase CBD oil over-the-counter without needing a prescription. If it goes through, local demand of CBD oil could increase five fold in a similar number of months.

The decision was initially expected in early December, but was delayed to the end of the year as more consideration was required.

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Stay informed with the latest cannabis news in Australia.

Stay informed with the latest cannabis news in Australia.

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