Next Investors logo grey

CPH to list on the OTC as it expands North American footprint


Published 23-MAR-2021 10:33 A.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Creso Pharma (ASX: CPH) today announced it is listing on the OTC market in the USA.

CPH is on trend with several ASX stocks that have listed on the OTC (Over the Counter) exchange in the US including:

  • Novonix was as high as 152% and is currently up 79%
  • Tinybeans is up 36.9% since its OTC announcement
  • FYI Resources Ltd has only been trading on the OTC for a month and is up 48%
  • European Metals Holdings Ltd is up 85% in the three months since its OTC listing

Listing on the OTC is expected to unlock significant shareholder value and provides CPH with access to one of the largest investment markets in the world at nominal cost.

Creso Pharma expects that the OTC listing will provide greater access to the North American capital markets and easier comparisons to US and Canadian listed peers.

CPH also feels its dual listing will bridge its valuation gap against its competitors: a number of competitors are currently trading at valuations between US$500M up to US$15BN on international exchanges, and many are less advanced.

The listing is expected to take approximately 45 days and once complete will form part of CPH’s strategy to raise global awareness of its operations in the cannabis and psychedelics medicines space.

“The Company is very excited about its proposed OTC dual listing,” Non-executive Chairman Adam Blumenthal said. “Creso Pharma has a growing global footprint and the OTC will provide a platform for the Company to boost its visibility to a broad base of US investors, particularly as cannabis moves towards legalisation. We look forward to updating shareholders on the listing process in the coming weeks.”

Halucenex to play a key role in CPH’s global recognition

News of the OTC listing coincides with CPH acquisition target Halucenex Life Sciences securing an additional supply of 700 mg of pharmaceutical grade psilocybin, otherwise known as magic mushrooms, for use in its upcoming clinical trial program, adding to the 11.6g previously secured.

Halucenex is an established psychedelics company focused on developing psychedelic-based treatments for Treatment Resistant Depression in individuals suffering from PTSD, and other mental health illnesses.

There are a number of US and Canadian cannabis and psychedelic medicine stocks that point the way for the $200M capped CPH:

  • Mindmed is capped at $1.18BN
  • Compass Pathways plc is capped at $1.41BN

Currently capped at ~ $200M, CPH wants to see if its valuation can catch up to its billion dollar plus North American peers.

Importantly, Halucenex is only one of 11 companies to secure psilocybin supply in Canada, with its relationship with manufacturing partners significantly de-risking clinical trial timelines.

The additional supply of psilocybin provided is GMP certified, which means it does not have be certified with regulators.

Further, the bolstered inventory allows ample runway for Halucenex to progress research initiatives including Phase II and Phase III clinical trials and stable pricing metrics.

There is currently a growing interest in psychedelic inspired medicines and a bottleneck in the supply chain for synthetic psilocybin as more companies enter the research domain.

This means awareness should grow quickly.

“Securing an additional supply of psilocybin is a very pleasing development and highlights the strength of Halucenex’s relationship with Canada’s only manufacturer,” Blumenthal said.

“We are very excited to progress the upcoming clinical trial program and are confident that the initiative will add to the growing body of evidence for the use of psychedelic medicines as a much needed alternative.”

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.