If human beings can use cannabis for relief from a long list of ailment, why can’t pets?
This is a growing line of thought within the cannabis industry that is giving birth to a potentially huge new cannabis market.
As it stands, there is no hardcore scientific research that supports pets can benefit from cannabis.
However, there is plenty of anecdotal evidence. Many pet owners and vets across the globe swear that they have seen cannabis therapies intended for humans provide huge health benefits for their pets.
Pet owners spend about $30 billion per year on medicine for their pets.
The cannabis company that can crack the code on cannabis therapies for pets stands to potentially make billions in profits. Early shareholders would see huge gains.
That’s why I’m excited to share a little-known cannabis company headquarters in Switzerland and operating in Australia that is leading the charge into this potentially huge market for cannabis pet therapies.
Creso Pharma (ASX: CPH, OTC: CRCPF) is a promising young cannabis company incorporated in Switzerland with its headquarters in Australia and operations across the globe.
Creso shares are listed on the Australian Stock Exchange under the ticker symbol CPH. Shares are also listed on US, OTC markets under the ticker symbol CRCPF.
Yesterday, I saw daily trading volume of 399,000 on the Australian ticker CPH. That is a very liquid listing that is capable of absorbing big money from institutional traders. No volume issues there.
Interestingly, I don’t see any trading volume for the US ticker CRCPF yet. I believe that this US OTC ticker may have just been issued and hasn’t started trading. For now, I would recommend anyone interested in investing in Creso buy the CPH shares in Australia.
Creso is making a name for itself as an early global leader in cannabis therapies for pets and animals.
The company has developed two therapies – anibidiol 1.25 and anibidiol 2.5 – created for pets such as cats and dogs and designed to treat animals with non-pharmaceuticals that are both natural and non-toxic to animal systems.
These two therapies are manufactured using cannabidiol, the second most common compound found in cannabis. This compound is known for its healing qualities without the side effects of getting users stoned.
The therapies are intended to treat a wide range of ailments such as chronic pain, arthritis, anxiety, diabetes and various age-related issues.
Creso announced a string of good news on its animal therapies in 2017. This tells me that this young cannabis biotech is on its way to widespread commercialization and profitability.
Creso Received Approval from the European Union for Animal Cannabis Therapies
In January, Creso announced anibidiol had received two European Union health registrations for anibidiol– one for horses and the second for smaller pets such as dogs and cats.
The plan is to roll out anibidiol in Switzerland and Europe in September, followed by a wider rollout in South Africa and countries in the Persian Gulf area and Latin America.
On August 8, Creso announced it had entered into a distribution partnership with Virbac, a global pharmaceutical animal health company, to launch anibidiol in Switzerland.
Creso has will manufacture the products and Virbac will launch, market and promote the products to veterinarians and pet owners.
The agreement is scheduled to begin on September 1 in Switzerland and Lichtenstein.
Virbac is a pharmaceutical animal health company with a presence in over 100 countries, 4,800 employees and ranks as the 7th largest pharmaceutical veterinary company worldwide.
The EU registration and distribution deal with Virbac were big wins for Creso. Although these therapies are not yet available in Australasia, it paves the way for the company to sell its animal therapies globally.
Creso isn’t Just a Play on Animal Therapies – It is also Developing Cannabis Therapies for Humans
Creso is also busy developing cannabis therapies for humans.
In February, Creso’s Australian partner Health House International Pty Ltd was granted an import-export license by the Australian Federal Government.
This agreement enabled Creso to score a landmark achievement in the Australian cannabis market – becoming the first company to import medical cannabis into Australia in May.
Health House is now distributing medical cannabis products across Australia through authorized pharmacies.
Creso Just Signed a Partnership to Source Cannabis Domestically within Australia
While Creso imports cannabis into Australia, it is also working hard to secure its own domestic production source.
In May, Creso announced it had signed an agreement with LeafCann, a leading Australian cannabis grower, to accelerate the growth and commercialization of domestically grown cannabis within Australia.
The partnership will have LeafCann supply Creso with cannabis and hemp derivatives that it will use to develop and manufacture its pharmaceutical grade therapies for both human and animals in Australia.
Creso is Taking Aim at the Canadian Recreational Market
With first-year cannabis sales projected to be between $5 and $6 billion, the Canadian recreational market has global cannabis companies scrambling to cash in. That includes Creso.
On August 1, Creso announced it was expanding into Canada with the acquisition of Mernova Medicinal.
Mernova is a privately owned cannabis company located in Nova Scotia. They applied for a medical cannabis cultivation license through Health Canada, Canada’s regulatory agency responsible for issuing cannabis permits.
Mernova has already acquired a strategically located piece of land in Canada where it plans to start building a 20,000 square foot cannabis greenhouse this fall.
The deal valued at $10.2 million in cash and equity makes Creso the first Australian cannabis company with direct exposure to Canada’s medical cannabis market and sooner than later its recreational market.
On the Chart
Creso jumped higher in early 2017. Since then, shares have been weak with the broader cannabis sector, down about 50% from the all-time high.
I love this formation the chart. This pullback is a chance for investors to buy on a huge dip. I also see a strong level of support between $0.40 and $0.50. Take a look below.
The Big Picture
Creso is making some major moves right now to cash in on the booming global cannabis market. The most interesting thing I see happening is its work in cannabis therapies for animals.
Financially, this company is still tiny. It only has a market value of $43 million and it isn’t really generating any material revenue. However, I expect that to change as its recent string of projects to take flight.
I definitely dig this stock. But I view Creso as a smaller holding in a diversified cannabis portfolio.