Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) is accelerating its growth strategy with two new director appointments, a board transition and a rebranding strategy to unlock additional mergers and acquisitions (M&A) opportunities.
The company has appointed experienced ex-Canopy Growth Corp executive Ben Quirin as its non-executive director.
As part of Creso’s acquisition of Sierra Sage Herbs LLC, its co-founder and CEO Jodi Scott has also been appointed as an executive director of the company.
Notably, to capture the group’s diversified operations, the company intends to seek shareholder approval to change its name to Melodiol Global Health Limited at a future general meeting.
Looking ahead, Creso is confident that its new board appointments, change of name and recent shift towards cannabis reclassification in the US will provide a strong foundation for future M&A opportunities and growth at a group level.
“Pivotal moment”
CPH managing director William Lay said: “It is my pleasure to welcome Ben and Jodi to Creso Pharma’s board.
“Having worked with Ben previously at Canopy Growth, I have witnessed firsthand his ability to grow brands and products in new and emerging markets.
“We expect to benefit considerably from his appointment and anticipate having another Australian-based director may unlock several additional opportunities.
“Jodi’s appointment also solidifies the importance of SSH as one of the company’s major operating divisions.
“Her in-country presence will be imperative to Creso Pharma’s growth in North America, which has been highlighted through recent progress and international expansion opportunities."
The board changes follow the resignation of non-executive director and founder Adam Blumenthal from the board, effective October 10, 2022
“I would also like to take this opportunity to thank Adam for his ongoing service to the company," Lay said.
“Over recent years, he has been instrumental in the development and implementation of Creso Pharma’s strategy, which has resulted in the diversification of the company’s product suite and operating divisions internationally.
“The board and management team thank him for his continued support and wish him well in his future endeavours.
“Finally, as we continue to integrate processes, products, brands, and talent across our portfolios, we intend to mark this pivotal moment with a new name that represents the global ambitions of the organisation.”
Experienced non-executive director
Ben Quirin is a leading senior executive, with more than 20 years of experience in the telecommunications, technology, and pharmaceutical sectors.
He has a strong track record of launching new products and leading business development initiatives in new and emerging markets, having established products and brands in Europe, the Middle East and Africa, as well as the Asia Pacific Region.
Quirin has extensive expertise in the cannabis sector and previously held the position of regional managing director for Canopy Growth Corp for APAC.
Following his tenure with Canopy Growth, Quirin became an executive and investor of Invert Inc., which specialises in emissions reduction and offsetting for corporate clients in Australia and international markets.
Creso Pharma will leverage his extensive expertise to drive product and brand growth in new and emerging markets, with a particular focus on the APAC region.
Director from Sierra Sage
Sierra Sage Herbs LLC (SSH) co-founder and CEO Jodi Scott has been appointed as executive director as of October 10, 2022.
As part of the acquisition of SSH by Creso Pharma, Scott has also been employed in the position of president of US operations by SSH and is responsible for all executive and management matters affecting SSH.
Scott has been imperative in establishing SSH, its leading brands and growing the group’s sales.
Creso Pharma expects to benefit from her established network in the US and her guidance and expertise in product development, manufacturing, and the large North American market.
“Major achievement”
Outgoing director and founder Adam Blumenthal said: “To have secured Ben’s services is a major achievement for the company.
“He has a strong track record and has already identified a number of potential opportunities for the company.
“Upon his and Jodi’s appointment, I am very confident that Creso Pharma has developed a board and management team that has the necessary skill set to grow in new and existing markets while pursuing cashflow breakeven at a group level.
“In a small number of years, Creso Pharma has grown from a small CBD-focused healthcare company to a burgeoning internationally focused recreational cannabis producer and provider of natural over-the-counter products, CBD solutions for humans and animal health, and psychedelics.
“In addition, having three ex-Canopy Growth executives within the company’s board, being Bruce Linton, Will Lay and now Ben, leaves the company very well placed to capitalise on opportunities ahead.
“Having worked closely with Bruce and Will over the past three and two years, respectively, I am extremely confident in their skillset and vision.
“These three ex-Canopy executives joining the Creso board is also a testament Creso products and brand that has been created to date.
“To have a Board of Directors in place with considerable expertise in advancing Nasdaq-listed companies to profitability fits perfectly with where the company is today, and I feel extremely confident in their ability to take Creso into profitability.
“The proposed name change during Creso Pharma’s ongoing expansion is extremely timely given the ongoing shift towards potential cannabis decriminalisation in the US, increased level of corporate activity and international expansion.”
Proposed change in company name
Creso intends to seek shareholder approval at a future general meeting to change its name to Melodiol Global Health Limited.
Should this initiative be approved by shareholders, this rebranding will assist in best capturing the essence of the diversified operations of the group.
Melodiol is a nod to the company’s focus on combining traditional plant-derived remedies with modern scientific expertise to bring safe, natural and efficacious products to market for a growing group of source-conscious consumers.
The board and management’s decision to undertake a change of company name has stemmed from several recent acquisitions, as well as being part of a broader strategy to position the company for further M&A opportunities in the US and other key markets.