Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has received the green light from the Supreme Court of Western Australia to acquire 100% of Health House International Ltd. The acquisition gives Creso an international pharmaceutical distributor, specialising in (but not limited to) the distribution of medicinal cannabis products in Australia and other international markets.
The Scheme of Arrangement was approved on May 4, 2023 and is now legally effective.
The acquisition gives Creso another revenue generating business unit, as well as operations focused on the international distribution of medicinal cannabis and several strategic licences to store, distribute, import, export and sell controlled drugs.
It highlights Creso’s commitment to advancing a commercial pathway in the Australian market, following TGA indication that medicines containing psilocybin and MDMA for prescription by specifically authorised psychiatrists for the treatment of certain medical conditions will be allowed from July 1, 2023.
Growing revenues
Health House generated $5.95 million in cash receipts for the three-month period ended March 31, 2023, which marked a 10.1% increase on the prior period and a 36.4% rise on the prior comparative period.
With the acquisition, the company’s unaudited pro forma revenue is $8.26 million or over $33 million on a last quarter annualised basis.
CEO and managing director William Lay said: “We are very pleased to have taken another major step forward in our acquisition of Health House. The group has an enviable set of licences which we can use to our immediate benefit and adds another growing revenue channel to the group.”
Broadening its licence suite
While Creso Pharma and Health House monitor regulatory changes and explore opportunities to drive growth in key markets, Health House has formally lodged applications for state licence amendments to import and distribute medicines containing psilocybin and MDMA for either clinical trial purposes or certain mental health conditions under authorised psychiatrists.
Creso will also continue to examine the potential to import the finished product from wholly owned psychedelics subsidiary Halucenex Life Sciences Inc. ongoing Phase 2 clinical trial which is testing the efficacy of synthetic psilocybin on symptoms associated with Post Traumatic Stress Disorder (PTSD).
“The application for an import licence for psychedelics marks another exciting opportunity for Creso Pharma and we look forward to advancing this initiative to create a first mover advantage in the Australian market,” Lay said.