Creso signs $2.5m distribution agreement

opens up a total potential addressable market of 750 million people ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ [Open in your browser]( [Member Alert] [Logo] --------------------------------------------------------------- [table1]( Creso to enter Pakistan and Philippines with A$2.5m distribution agreement Highlights: • Creso enters into Distribution Agreement with Route2 Pharm Pvt Ltd in Pakistan, for the exclusive distribution of Creso Pharma’s products into Pakistan and Philippines, as well as non-exclusive distribution into other potential target markets • Agreement specifies combined minimum order quantities for the first year of up to AUD$2.48 million across CannaQix 10, Cannaqix 50 and CannaDOL product lines • Agreement follows a landmark decision by the Government of Pakistan allowing Pakistan to enter the billion-dollar Cannabidiol (CBD) market • Pakistan has a population of over 216 Million people and a wide range of unmet needs that can be addressed by a targeted portfolio of products • Other potential target markets include Cambodia, Afghanistan, Azerbaijan, Bangladesh, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam (‘Potential Target Markets’) - takes potential addressable market to 750 Million people [Click here to read the full ASX Release]( Creso Pharma Limited ([ASX:CPH]( FRA:1X8) (‘Creso Pharma’ or ‘the Company’) is pleased to announce a comprehensive distribution agreement with leading nutritional supplements company, Route2 Pharm Pvt Ltd (‘Route2’), to import, market, distribute and sell the Company’s innovative hemp derived therapeutic products exclusively into Pakistan and Philippines (being the “Exclusive Territories”), and non-exclusively into other potential target markets including Cambodia, Afghanistan, Azerbaijan, Bangladesh, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam (being the non-exclusive ‘Potential Target Markets’). The agreement opens up a total potential addressable market of 750 million people, significantly expanding Creso’s international presence, which comes ahead of the launch of a number of new products across its animal and human health divisions. Route2 is a subsidiary company of Route2Health ([www.route2health.net](. Route2Health has over thirty years of pharmaceutical sciences experience and produces and distributes world-class herbal remedies and dietary supplements. It is based in Pakistan and has United States Pharmacopeia (USP) GMP compliant manufacturing facilities and global partnerships. Under the terms of the 3 year Agreement, Route 2 has exclusivity rights over the Company’s cannaQIX® and cannaDOL product lines in the Exclusive Territories, subject to Route 2 achieving minimum order quantities (“MOQ”) for each product line in the first contractual year, being 1 January to 31 December (“Contractual Year”). First Contractual Year minimum order quantities are as follows: [table1]( The minimum order quantities only become applicable three months after each product is registered in each Exclusive Territory, and Route 2 shall launch and commence distribution within 6 months after such product registration, with minimum order quantities in the first contractual year being adjusted pro rata relative to the date that a product is registered and launched in an Exclusive Territory. Route 2 is responsible for obtaining all such necessary and legally required registrations, authorisations and certifications. For the second and third contractual years of the Agreement, the Parties will negotiate in good faith to set new minimum sales targets. In the event that minimum order quantities are not realised within any Contractual Year, Creso has the right to terminate the Agreement upon giving Route 2 six months written notice, with such notice to be given on or before 31 March of the following Contractual Year. The Agreement may otherwise be terminated by either party in the event of a material breach, or bankruptcy of the counterparty. The Agreement follows a landmark decision made by the Pakistan government in September 2020, which will allow the country to enter into the billion-dollar cannabidiol (CBD) market, through a focus on cultivating cannabis and hemp for therapeutic products. Route2Health has a strategic association with Highnoon Laboratories Limited (PSX: HINOON) (‘Highnoon’), one of Pakistan’s most successful and progressive pharmaceutical companies. Under the Agreement, both parties have agreed, subject to further regulatory approvals, to leverage their combined international reach to distribute and sell Creso’s products into additional markets including the Philippines and Cambodia, as initial priorities, as well as Afghanistan, Azerbaijan, Bangladesh, Cambodia, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam. This considerably broadens Creso’s international footprint and unlocks a number of large market opportunities. Pakistan has a population of over 216 Million people and a wide range of unmet needs that can be addressed by Creso’s targeted portfolio of products. Creso has a growing portfolio of cannabis and hemp-derived products that focus on four key areas including therapeutics, nutraceuticals, animal health, and cosmetics. The Company currently has a portfolio of 13 products, eight of which have been commercialised and are generating revenues, as well as a strong product development pipeline. Non-executive Chairman Adam Blumenthal said: “This Agreement has the potential to take Creso into markets with a combined population of over 750 million people. Our mission is to deliver access to affordable, high quality, broad spectrum, GMP products for the betterment of people’s lives everywhere. We’re delighted to conclude this important partnership, through which we hope to provide the opportunity for millions of people to have access to our innovative products.” Tausif Khan, the Chairman of Route2 and Highnoon Laboratories said: “We are very excited to progress this partnership with leading global cannabis company Creso Pharma. There exists a vast amount of real-world and strong clinical evidence which supports the safety and efficacy of hempbased therapeutic products. The basis for this partnership is a shared commitment of bringing affordable, high quality products to market which improve peoples lives. We intend to fully leverage the financial and marketing strength of our group to deliver on this mission.” Shahnawaz Baig, Managing Director of Route2 said: “Our company has thirty years’ experience of successfully bringing products to market. These products draw on our knowledge in both pharmaceutical sciences and time-tested herbal remedies. We have been strongly encouraged with the recent regulatory breakthrough on CBD in Pakistan, which will result in the removal of obstacles to patient access. We continue to work closely with the relevant authorities to pave a way for patients and consumers to gain access to the benefits of Creso’s innovative hemp-derived therapeutic products.” About Creso Pharma Limited Creso Pharma Limited (ASX:CPH) brings the best of cannabis to better the lives of people and animals. It brings pharmaceutical expertise and methodological rigor to the cannabis world and strives for the highest quality in its products. It develops cannabis and hemp derived therapeutic, nutraceutical, and life style products with wide patient and consumer reach for human and animal health. Creso Pharma uses GMP (Good Manufacturing Practice) development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland. It has worldwide rights for several unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids. [Discover the Creso Pharma Story here]( [table1] --------------------------------------------------------------- The Information in a Stockhouse Publishing Ltd. Stockhouse News Blast is A PAID ADVERTISEMENT and is for the viewers information only. Creso Pharma Limited has paid a fee not exceeding $15,000.00 in cash or stock to have their corporate information featured. The corporate information is purely and solely the responsibility of Creso Pharma Limited and it is neither commented upon, researched, or in any manner the responsibility of Stockhouse Publishing Ltd., whose only function is as a supplier of media facilities. Any information provided by the advertisers of Stockhouse Publishing Ltd., through its media services, is not to be construed as a recommendation or suggestion or offer to buy or sell securities, but is provided purely as an informational media service. Stockhouse Publishing Ltd. makes no warranties or undertakings as to the accuracy or completeness of this information. All due diligence should be done by the reader or their financial advisor. Investing in securities is speculative and carries risk. Persons who wish to buy or sell securities should only do so in consultation with their registered securities advisers. --------------------------------------------------------------- [facebook]( [twitter]( [LinkedIn]( [stockhouse]( Stockhouse Publishing Ltd. | 1185 West Georgia Street, Suite 1625 | Vancouver | BC | V6E 4E6 | CA This email was sent to you by Stockhouse Publishing Ltd. because you consented to receive messages from us. You may [manage your subscription]( preferences at any time. You may contact our email compliance officer at compliance@stockhouse.com