Perth-based cannabis company bought out

ASX-listed cannabis company Creso Pharma has agreed to be purchased by a Canadian marijuana company for $122 million in scrip.

The Perth, Sydney and Switzerland-based firm is being purchased by Canadian-owned, Colombian-based PharmaCielo, Creso said on Friday.

Shareholders will receive the equivalent of 63 cents per share in PharmaCielo’s TSX Venture Exchange-listed stock, a 51.8 per cent premium.

At 1453 AEST on Friday, Creso shares were up 14.25 cents, or 34.34 per cent, to 55.75, their highest level since January.

PharmaCielo describes itself as the largest licensed cannabis producer in Colombia, and is gearing up to produce CBD and THC oil extracts later this year.

Creso has operations in Switzerland, Canada and Australia, as well as joint ventures in Estonia and Israel, and is developing pot-based products in skin care, pain relief and animal care.

It recently cultivated its first cannabis crop in Nova Scotia, Canada, and its Estonia joint venture is even developing hemp-derived craft beer.

In April Creso brought into Australia what it described as the country’s first medical cannabis import, CannaQIX50, a lozenge designed to treat chronic pain that doesn’t get users high.

So far though Creso has yet to show a profit as it tries to build a global brand.

Last year the company declared a loss of $16.8 million on revenue of $578,222

Creso Pharma co-founder and chief executive Miri Halperin Wernli said Creso shareholders would benefit by being part of a “best in class and well-capitalised global medicinal cannabis company”.

“The combined companies will offer a unique combination of assets and professional skills across the cannabis value chain,” she said.