Creso in $17.5m placement and chocolate partnership

Medicinal cannabis company Creso Pharma will raise $17.5 million through a strongly supported share placement, while also announcing a partnership with Swiss chocolate firm Aeschbach Chocolatier to develop marijuana flavoured chocolates.

Creso will issue shares at $1.10 each to raise $15.5 million, with strong demand coming from institutional, sophisticated and professional investors.

The remaining $2 million will come through a share purchase plan for eligible shareholders at the same price.

EverBlu Capital acted as lead manager for the placement, while the share purchase plan was underwritten by Energy Capital Partners.

Creso chief executive Miri Halperin Wernli said the funds from the capital raising would be used for the construction of the cannabis growing facility in Canada, general working capital and to enable the company to pursue further growth opportunities.

Meanwhile, the company also announced its partnership with Aeschbach to develop premium chocolates infused with a variety of terpenes and spices.

The terpenes in the new chocolate products will carry the characteristic odour and fragrance of cannabis with the same taste and feel, but will not contain THC or CBD or any other cannabinoids.

Aeschbach is has been creating chocolate and confectionery specialities since 1972.

Ms Wernli said the partnership made sense for Creso.

“We are a global leader in cannabidiol innovation, developing hemp and cannabis derived products, committed to becoming a leading global player in the cannabis and hemp industry through disruptive efficiency and innovation,” she said.

“Our approach is to partner with industry and technology leaders to develop and commercialise innovative products which will capture the consumers’ imagination.

“Entering the edibles market exemplifies this approach and will build on our scientific and technical expertise as well as on our vast geographical reach for commercialisation.”