Creso Pharma Limited has completed the acquisition of emerging Nova Scotia-based medicinal cannabis producer, Mernova Medicinal Inc (Mernova).
As a result of the receipt of tax advice, the Company has undertaken completion of the acquisition
through two newly incorporated Canadian subsidiaries, Creso Canada Limited and Creso Canada
Corporate Limited. On completion, the shareholders of Mernova were paid a cash payment of
C$200,000 and issued a total of 8,300,000 exchangeable shares in Creso Canada Limited, with such shares being exchangeable for fully paid ordinary shares in Creso on the satisfaction of milestones.
The completion of the acquisition marks Creso’s formal entry into Canada and means it is the only
Australian cannabis company with direct exposure to the world’s largest legal medical cannabis
market, the company said. It also delivers on the Company’s strategy of establishing a Canadian presence and the pursuit of opportunities in the medicinal cannabis space, with added exposure to the huge recreational cannabis market once this is legalised, with legalisation expected in mid 2018.