PharmaCielo Enters Into Agreement To Acquire Medical Marijuana Company Creso Pharma

PharmaCielo Ltd. PCLO announced it entered into an implementation agreement with Creso Pharma Ltd. CPH to acquire all of Creso’s issued and outstanding shares and listed options.

The deal is for approximately A$122 million (about $85.2 million USD). PharmaCielo will pay 63 cents for each Creso share. Both PharmaCielo and Creso's board of directors have unanimously approved the deal.

Need more cannabis news? Check out all of our coverage here.

Why It Matters

The acquisition is expected to give PharmaCielo access to Creso's assets for increased synergy. They include Creso's Swiss-led team, four branded proprietary products and four new products slated for commercialization in 2019.

PharmaCielo also stands to benefit from Creso's presence in 13 countries, including Australia, Brazil and Germany.

David Attard, PharmaCielo CEO, detailed the importance of the deal and its expanded market presence.

"Upon closing of the transaction, the combined company will quadruple our global footprint with presence in more than a dozen countries spanning North and Latin America, Switzerland, Europe, the Middle East, Australia and New Zealand," Attard said in a press release.

Co-Founder and CEO of Creso Pharma, Dr. Miri Halperin Wernli, explained how the deal benefits all parties.

"The quality and scale of PharmaCielo's cultivation and oil extraction operations in Colombia complements our focus on meeting global demand for the highest quality CBD and THC based therapeutic, nutraceutical and animal health products through increased access to the necessary quality and volume of oil production," he said.

Related Links:

Curaleaf Makes Acquisition To Enter Ohio Cannabis Market

Aurora Cannabis Wraps 'Accretive' Whistler Medical Acquisition