Creso Pharma

WILLIAM LAY

CEO & MANAGING DIRECTOR

(ASX:CPH)

◾ Company Name: Creso Pharma ◾ Company ASX code: CPH ◾ Key areas: Innovative plant based (including cannabis and hemp) products for humans and animals ◾ Key Personnel: William Lay, CEO & Managing Director | James Ellingford, Chairman | Bruce Linton, Non-Executive Board member ◾ Locations: Australia, Canada, Switzerland, United States ◾ Market Cap as of 15/09/22: $64.28M ◾ 52 Week share price as of 15 September: $0.035 - $0.160 ◾ Company Website: www.cresopharma.com

COMPANY PROFILE

Creso Pharma developed as a global innovator in medicinal cannabis, and has built a reputation for itself as one of the most trusted providers of cannabis and hemp derived products.

The company has significant operations in Canada and Switzerland and is making rapid inroads into the potentially lucrative US market.

In Canada, Creso is currently a multimillion-dollar revenue-generating cannabis producer through its wholly-owned subsidiary Mernova, which operates a 2,230m2 state-of-the-art facility, cultivating and selling cannabis to provincial markets under the Ritual brand, including dried flower, pre-rolled joints and handheld vapes.

The company has made great leaps and rapidly grown its revenue, and the number of markets it services – and with crop yield at the facility increasing dramatically, Mernova expects to see that translate into lower cost per gram and higher sales margins.

Creso made significant inroads into the North American market by recently acquiring US-based Sierra Sage Herbs, maker of the best-selling Green Goo natural products brands.

Sierra Sage has over 90,000 points of distribution across the US including Whole Foods, Walmart, Amazon, Target. com, CVS, and Walgreen’s. Creso and Sierra Sage are working together to bring Creso’s broader portfolio of non-THC products to the US.

As part of its US strategy, Creso has also acquired the assets of ImpACTIVE, a company that develops a range of CBDbased products to reduce muscle and joint inflammations.

Recently, Creso also launched itself into the emerging US$100 billion global medical market for psychedelics after acquiring Canadian psychedelics specialist, Halucenex Life Sciences.

Halucenex operates a 560m2 medical facility, with six treatment rooms and a secure laboratory dedicated to performing psychedelic-assisted psychotherapy and clinical research.

Halucenex is also one of only four public Canadian companies to receive a Dealer’s License from Health Canada and is about to commence a Phase 2 trial on psilocybin-based treatment for posttraumatic stress disorder (PTSD).

The clinical trial has the potential to unlock a new and potentially large market for Halucenex and Creso, as independent studies have shown that natural psilocybin is less compatible in clinical settings due to its inconsistency of potency.

Producing synthetic psilocybin in-house will therefore allow Halucenex to replace third-party supply agreements, potentially allowing the company to expand into a supplier role to other distributors and practitioners.

In Switzerland, Creso is producing hemp-based products for both humans and animals with “Swiss Made” labels at thirdparty GMP certified facilities.

The company now has a network of over 3,000 points of sale in the European continent, selling a range of supplements under the ‘cannaQIX’ brand, and animal products under the ‘anibidoil’ brand.

Creso’s experienced pharmaceutical leadership team meanwhile have an unparalleled track record of success commercialising a wide range of CBD products.

Legendary Canadian cannabis entrepreneur Bruce Linton, the co-founder of NYSE-listed weed stock Canopy Growth, recently joined Creso to become a Board member, alongside CEO William Lay – a former investment banker and an experienced cannabis executive who previously led >C$5 billion of M&A deals as Associate Director at Canopy Growth.

Chairman James Ellingford is a former President of an international publicly listed billion-dollar business with its headquarters in Geneva and New York.

It’s an exciting time for Creso shareholders as the company targets a NASDAQ listing sometime in 2022.

KEY INVESTMENT HIGHLIGHTS

JANUARY 17, 2022: Creso appoints NYSE-listed Canopy Growth Corp founder and former chief executive officer Bruce Linton as board member, and William Lay as CEO and Managing Director. FEBRUARY 3, 2022: Announces most significant acquisition to date and entry into US CBD market with acquisition of Sierra Sage Herbs LLC. AUGUST 31, 2022: Half year report shows both significant revenue growth and substantial reduction in operating costs.