PharmaCielo to Acquire Creso Pharma for AUD 122 Million to Expand Global Medicinal Cannabis Business

Recently, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Creso Pharma has announced an agreement with PharmaCielo. Under the terms of the agreement, Creso Pharma will be acquired by PharmaCielo. The transaction will be conducted in accordance with Creso Pharma’s share purchase plan with its shareholders and the option plan between Creso Pharma and its listed option holders. Based on the aforementioned plans and other various unlisted securities of Creso Pharma, the total acquisition amount is AUD 122 million.

In this acquisition, EverBlu Capital served as the company’s advisor and will receive a commission equal to 3% of the transaction value upon closing. Cormark Securities acted as the financial advisor. Additionally, Steinepreis Paganin served as legal counsel to Creso Pharma, while McMillan LLP and Minter Ellison served as Canadian and Australian legal counsel to PharmaCielo, respectively.

PharmaCielo is a privately held cannabis company listed on the TSXV. Leveraging Canada’s high standards for financial accountability and regulatory oversight in the medical cannabis industry, the company has established its headquarters in Canada. Its wholly-owned subsidiary, PharmaCielo Colombia Holdings S.A.S., headquartered in Rionegro, Colombia, is the largest fully licensed producer of medicinal cannabis oil products in the country.

Creso Pharma is a medicinal cannabis production company founded by a group of experienced pharmaceutical executives. The company is committed to serving human and animal health by researching, developing, registering, and marketing pharmaceutical-grade cannabis and cannabis-derived products (such as health supplements, therapeutic drugs, and daily use items) through cutting-edge scientific technologies, underpinned by rigorous standards and professional pharmaceutical expertise and methodologies.

As a global cannabis company, Creso Pharma operates across multiple countries, with subsidiaries including Hemp-Industries s.r.o. in Slovakia, Creso Pharma Switzerland GmbH in Switzerland, and Creso Pharma in Australia. The company has achieved numerous milestones during its development: it was the first to import medical cannabis into Australia; the first to launch innovative products for both humans and animals in Switzerland; partnered with Virbac, a global animal health company based in Switzerland, to introduce the first cannabidiol (CBD) supplemental feed designed to support animal health; formally entered the Canadian market through the acquisition of Mernova, a medical cannabis cultivation enterprise in Nova Scotia, Canada; and pioneered new applications for cannabis and its derivatives in everyday life, such as incorporating them into chocolate, alcoholic beverages, and non-alcoholic drinks.

Upon completion of the acquisition, PharmaCielo will appoint Dr. Miri Halperin Wernli, Co-founder and CEO of Creso Pharma, to its Board of Directors.

This acquisition will enable both parties to leverage their complementary strengths. David Atard, CEO of PharmaCielo, stated, “Following the merger with Creso Pharma, we are poised to become a global leader in the medical cannabis industry. The combined company’s global footprint will expand fourfold, spanning more than a dozen countries across North America, Latin America, Europe, Oceania, and the Middle East, including Switzerland, Australia, and New Zealand. This acquisition will allow high-quality Colombian cannabis oil to be rapidly brought to market, thereby enhancing the company’s profit margins. Creso Pharma boasts an established and highly dedicated commercialization team; its ready-to-market products and active international sales channels will accelerate the sales of our branded products.”

Dr. Miri Halperin Wernli, Co-Founder and CEO of Creso Pharma, stated: “The combined company will promote cannabis products on a global scale, benefiting patients and cannabis consumers. The quality and scale of PharmaCielo’s cultivation and cannabis oil extraction operations in Colombia will enhance the quality and output of our products, meeting the global demand for high-quality cannabis-derived therapeutics, nutraceuticals, and animal health products.”

EverBlu Capital is an investment bank headquartered in Australia, primarily providing corporate advisory and capital markets services to its clients. Its offerings encompass three key areas: delivering diversified corporate advisory services to listed and unlisted clients across various industries; providing transaction and advisory services to Australian domestic and international retail and wholesale companies, as well as institutional clients; and producing timely, comprehensive research reports on corporations and their respective industries.

Cormark, established in 1981 and formerly known as Sprott Securities, is an investment bank that has become a leading firm in the industry by leveraging its expertise and commitment to the mid-market and emerging growth sectors. The company focuses on investments in the early and pre-IPO stages of enterprises.

(Compiled by Tang Lulu)