Next Investors logo grey

CPH set to expand in $300M Latin American CBD market


Published 04-JUN-2021 10:54 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 Limited (ASX: CPH, FRA: 1X8) is set to take its product deeper into the Latin American market.

The expansion of its comprehensive distribution agreement with leading nutritional supplements company Route2 Pharm Pvt Ltd, will allow for distribution of CPH’s hemp derived therapeutic products sold under the cannaQIX® and CannaDOL brands into Ecuador.

Expansion of this agreement gives CPH access to the rapidly growing Latin American CBD market.

According to analytics company Statista, “the recreational legal cannabis market in Latin America and the Caribbean was forecast to reach nearly 300 million US dollars by 2024, up from an estimated value of four million dollars in 2020.”

The following graph indicates just how quickly this market is growing and how large it is becoming:

Market value of legal cannabis in Latin America and the Caribbean from 2020 to 2024, by type.
Market value of legal cannabis in Latin America and the Caribbean from 2020 to 2024, by type.

That the Latin American cannabis market is growing so rapidly is a widely held view:


CPH has the product range to capitalise, while Route2Health has over 30 years of pharmaceutical science experience and focuses on producing and distributing world-class herbal remedies and dietary supplements.

Together the companies, in association with Highnoon Laboratories (PSX: HINOON), which is principally engaged in the manufacture, import, sale and marketing of pharmaceutical and allied consumer products, will work together to leverage their combined international reach to include Ecuador to the existing agreed markets of Pakistan, Afghanistan, Azerbaijan, Bangladesh, Cambodia, Georgia, the Maldives, Myanmar, the Philippines, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.

Roll out subject to regulatory approval.

“The evolving regulations in Ecuador and the broader Latin American and Caribbean region present a tremendous opportunity for both our human and animal products and the extension of our distribution agreement with an established company such as Route2 provides the opportunity for millions of people to gain access to our innovative products,” CPH Non-executive Chairman Adam Blumenthal said.

“Our mission is to deliver access to affordable, high quality, broad spectrum, GMP products for the betterment of people’s lives everywhere. We are witnessing strong uptake across our entire product suite and this agreement provides further evidence of the considerable potential that the Company has in established and emerging markets alike.”

CPH currently has a portfolio of 13 products, eight of which have been commercialised and are generating consistent revenues, with the remaining pending commercialisation shortly.

Working together, CPH, and Pakistan-based Route2 and Highnoon will have truly global product reach in burgeoning markets.

Ecuador itself provides a large market opportunity for CPH as it recently passed legislation to approve the production, commercialisation, use and consumption of cannabis for medicinal or therapeutic treatment.

Ecuador’s population is 15 million-plus, while the broader Latin American and Caribbean region has an estimated population of 655 million.

“We are pleased to continue our investment in this partnership with leading global cannabis company Creso Pharma,” Tausif Khan, the Chairman of Route2 and Highnoon Laboratories said.

“Our teams’ joint efforts are making significant progress in key target markets and we are excited to leverage this momentum into additional territories. We share the commitment of Creso Pharma of bringing affordable, high quality products to market which improve peoples’ lives and we will continue to leverage the financial and marketing strength of our group to deliver on this mission.”

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.