Creso’s wholly owned Canadian subsidiary Mernova Medicinal Inc. secures four new purchase orders (POs) totalling C$494,131 (A$502,199)1

Highlights

~ Purchase orders (POs) received for Ritual Green products highlight significant demand

~ C$343,331 ($348,7261) in POs from the Ontario Cannabis Store mark Mernova’s entry into Canada’s largest recreational cannabis market

~ Additional POs from Cannabis NB in New Brunswick and Nova Scotia Liquor Corporation highlight a shift towards recurring revenue model

~Launch of new Black Mamba strain and pre-roll joint range expected to grow revenues

~Additional POs for Ritual Green products to materialise in the coming months

~ Mernova is on track to deliver a record quarter of POs

~ Continued repeat orders and customer uptake is highlighting Mernova to be a strong revenue generator

~ The shortened interval between receiving new POs and the growing value of each PO is extremely encouraging – outlook for remainder for financial year is extremely positive.

1  Based on the CADAUD exchange rate of ~$1.02.

DISC: I Hold

Distribution Agreement secured for innovative hemp derived therapeutic products in Pakistan, Philippines and other new markets

Up to CHF1.71m (AUD2.48m1) minimum order quantity across CannaQix 10, Cannaqix 50 and CannaDOL product lines

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’)

~ Agreement contemplates combined minimum order quantities for the first contractual year of up to CHF1.71 million (AUD$2.48 million1) across CannaQix 10, Cannaqix 50 and CannaDOL product lines, pro-rata subject to timing of product registrations.

~ Agreement follows a landmark decision by the Government of Pakistan allowing Pakistan to enter the billion-dollar Cannabidiol (CBD) market2

~ 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 people3

 1 Based on the CHF/AUD exchange rate of $1.45, as calculated per the table on page      2 of this release.

2 https://www.hindustantimes.com/world-news/in-landmark-decision-pakistan-       approves-industrial-use-of-cannabisand-hemp/story-     BNWRpToqe0eMKBASrnqq8O.html

3 https://data.worldbank.org/indicator/SP.POP.TOTL

Disc: I hold

Creso brings cannaQIX® sales inhouse to unlock further sales growth in Switzerland

Highlights:

~Creso has taken over the marketing & sales of cannaQIX® which were outsourced to Doetsch Grether in the Swiss market over the last 3 years

~Creso’s cannaQIX is listed with key wholesalers reaching over 2,100 pharmacies and drugstores as point of sales to the consumer

~ The re-integration of marketing & sales of cannaQIX® will provide an improved profit margin and set the stage for further new product launches

DISC: I HOLD

Creso Pharma welcomes OTC sale of CBD products in Australia Highlights:

~ Low-dose CBD products can now be sold over-the-counter in Australian pharmacies as of today (1 Feb 2021)

~ Follows TGA’s decision to down schedule low-dose CBD products from Schedule 4 (Prescription Medicine) to Schedule 3 (Pharmacist Only)

~ Creso is well placed to capitalise through agreement with Martin & Pleasance which provides access to over 4,000 pharmacies across Australia

~ Collaboration with Martin & Pleasance progressing well, with both parties working to define regulatory pathways and business cases to grow Creso’s Australian footprint

~ Creso anticipated this legislation and regulatory approval and is in a strong position to capture the Australian Market.

~ TGA regulatory approval is demonstrative of a growing global trend towards relaxation of legislation, making Creso products much more easily accessible to patients.

~ Creso is also pre-empting further relaxations of cannabis regulations in other jurisdictions globally, including the US, and is advancing discussions with potential distribution and channel partners to position itself as a first mover in the US and other markets, at the appropriate time.

DISC: I hold

Regulatory shifts and broadened global footprint underpin growth

740% increase in customer receipts on previous quarter

Highlights:

• Cash receipts from customers of A$709,000 highlight a 740% increase on the prior quarter

• Board & Management extremely pleased with the purchase orders received during the quarter – on track to deliver increased POs in Q1 2021

• Cash receipts in Q1 2021 expected to exceed previous quarter receipts

• Recent regulatory shifts around cannabis continue to unlock significant opportunities

Mernova Medicinal Inc. (100% CPH):

• Supply agreement with Ontario Cannabis Retail Corporation marked entry into Canada’s largest recreational cannabis market

• Recurring revenue profile continues to build – repeat POs secured and delivered

• Discussions with several world-leading distributors and resellers are well progressed – potential agreements are expected to considerably bolster sales

Nutraceutical product line - cannaQIX®:

• Second purchase order from Pharma Dynamics valued at CHF220,000 (~A$320,0001) secured – now delivered and booked as sales

• Heads of Agreement with Martin & Pleasance unlocks Australia and New Zealand markets

Animal Health Product Line - anibidiol®:

• anibidiol® becomes the first approved CBD hemp-based complementary feed for pets in Latin America

• Retail demand in Europe continues to grow - four purchase orders secured

• Product portfolio expansion initiatives underway to grow sector footprint

Corporate Developments:

• Leading cannabis executive and Canopy Growth Corporation founder Bruce Linton appointed as strategic advisor

• Successful capital raising of A$8.992 million from institutional, professional, and sophisticated investors

• All convertible note structures have been completely extinguished, cleaning a significant part of the balance sheet and capital structure

• Cash at bank at quarter end totalled $6 million with a further $2.2m received from the exercise of share options post the quarter end

Disc: I hold

Second shipment of cannaQIX® successfully delivered to Pharma Dynamics in South Africa - $320k AUD revenues

Highlights:

? Delivery allows Creso Pharma to bank CHF220,000 (~A$320,000) purchase order (‘PO’) for cannaQIX® products

? Pharma Dynamics is a subsidiary of leading global pharmaceutical company Lupin International (NYSE: LUPIN) and sell cannaQIX® under the Cannamics brand in SA

? Repeat order highlights growth opportunity for Creso Pharma in Africa – additional POs are expected

? Creso Pharma retained ~A$6m cash at bank as of 31 December 2020 – with a further $1.7m received from the exercise of options, allowing financial flexibility to pursue further near term growth opportunities as well as carry out the groups successful global revenue generation strategy.

Disc:I hold

8 January 2021 Impact of Democratic majority in US Senate on cannabis reform

Highlights:

• US Democratic Party secures balance of power in US Senate, significantly increasing the likelihood of cannabis reform

• Development enhances the potential for Marijuana Opportunity Reinvestment and Expungement Act to be passed to decriminalise cannabis in USA

• MORE Act is expected to encourage investors and larger corporate entities to drive the cannabis industry forward in the USA

• US cannabis market estimated to be worth US$130Bn by 2024i

• Creso is well positioned to benefit from potential legislative change with existing operations in North America allowing easy access to world’s largest cannabis market

• Creso is exploring several near term opportunities upon US federal legislation occurring

• Mernova, Creso’s licenced production facility in Canada is only 220 miles from the US border 

DISC: I hold (was a small holding but has gone up considerably lately) I also have small holdings in BDA,BOT, MXC & THC

This is still a risky stock and as per Andrew's last post Re the EU news, there is still a very long way to go & there are a LOT of stocks in this field

Cresco announces that is is set to benefit from the decision from the UN (United Nations) to have "cannabis withdrawn from Schedule IV classification. Schedule IV substances are considered the most dangerous and addictive drugs" to be "reclassified as Schedule I substance, which is the least restrictive drug classification... Decision expected to unlock multiple near term opportunities for Creso Pharma" Also I note yhat EXL & MXC have put up similiar announcements.

On 30/11/20 Cresco also announced that "On 19 November 2020, the Court of Justice of the European Union (CJEU) ruled that member states must not prohibit the marketing of lawfully produced CBD. Further, the CJEU ruled that CBD is not considered a narcotic, and as a result, CBD can be freely sold in the European Union (EU).'

Needless to say  the Cresco (CPH) has been going up over the lasst few days

Disc: I have small holdings in CPH, EXL & MXC