I would hazard a guess and say it’s because cp1 are close to having the worlds first legally approved cannabis medicine for dogs in the market which can generate significant revenue with minimal competition. And I would also assume Auscanns money is going to help them commercialise that product. Cp1 also has research which will likely help Auscann build it’s pipeline. Zoetis is the largest pet Company in the world with over $5b in rev and it was a spin off of Pfizer. Why? Because animal research is transferable to human and vice versa.
It’s a win/win for cp1 to get its products to market and for Auscann to benefit from that revenue while also getting the research to advance there own products too. And there is no one else on ASX that would be as cheap as cp1 to get that, and Auscann do not have the money to do cash deals.
