Insights

Creso Pharma (ASX:CPH) share price lower despite supply agreement news

The Creso (ASX: CPH) share price is falling lower today despite the company announcing a supply agreement to sell its products in Canada.
The post Creso Pharma (ASX:CPH) share price lower despite supply agreement news appeared first on The Motley Fool Australia. –

asx share price represented by green cannabis leaf sitting atop red maple leaves

Of ASX cannabis shares, Creso Pharma Ltd (ASX: CPH) shares have taken the spotlight recently after running more than 300% this month. Today, however, at the time of writing, the Creso share price has fallen 4.17% to 23 cents. This comes despite the company announcing that its subsidiary, Mernova, has secured a supply agreement with the Ontario Cannabis Retail Corp

Historic milestones for cannabis this month 

In addition to the surging Creso share price, other ASX cannabis shares have also delivered better than double digit returns following historic legal milestones for the consumption of cannabis this month. Earlier in December, the United Nations Commission on Narcotic Drugs (CND) voted to accept the World Health Organisation’s (WHO) recommendation to reschedule cannabis.

The passage came under the WHO recommendation, which recognised the medical value of cannabis, and will see the product removed from Schedule IV of the 1961 Convention. Schedule IV is reserved for substances with “particularly dangerous properties” and little or no therapeutic value. The vote acknowledges the medicinal usefulness of cannabis and clarifies that CBD is not under international drug control. 

This also follows the landmark ruling from the European Union’s highest court, the Court of Justice of the European Union. It ruled that cannabidiol is not a narcotic as it does not appear to have any psychotropic effect or harmful effect on human health. 

Creso share price falls despite new agreement

The Creso share price is dropping lower today despite the company announcing its wholly owned subsidiary, Mernova, has secured the Ontario Cannabis Retail (OCR) Corporation supply agreement. Ontario is Canada’s largest recreational cannabis market and the region’s monthly revenues from cannabis sales during September 2020 were C$77.9 million. This represents over 30% of Canada’s total monthly sales volume of cannabis. 

Under the agreement, Mernova will supply OCR with a range of its high quality, artisanal cannabis strains HPG13, Lemon Haze and Minosa. Its products will be sold through established stores and through the OCR online sales platform. 

Mernova Managing Director Jack Yu had this to say of the agreement:

This is a huge step forward towards selling our high quality products in Canada’s largest market. To be able to compete in a market with over C$385m in sales between April 2019 and March 2020, which continues to grow, as evidenced by over $80m in sales this past September alone, is a huge opportunity for us and we look forward to firmly establishing ourselves as one of the premier cannabis producers in the country.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Creso Pharma (ASX:CPH) share price lower despite supply agreement news appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!