The CPH Share Price Seems to Have Stabilised – What’s Next? (nextbiotech.com.au)

The CPH Share Price Seems to Have Stabilised – What’s Next?

PUBLISHED: 19-01-2021

It's time we updated you on Creso Pharma (ASX:CPH). This is a medical cannabis stock that has performed well for us in recent months.

We took a new position in CPH at around 3c in early October 2020, and we wrote about the stock again in early December when it was trading at around 8c.

After that, we were as surprised as anyone to see CPH rocket up as high as it did, so quickly.

In the space of a few days it shot all the way up to 47c - over 1,400% - on 9th December. On that day, $100M worth of shares exchanged hands

Over $1M in Purchase Orders to be delivered this Half

Today CPH reported a new Purchase Order for its animal health medicinal cannabis products totalling A$247,826.

The total value of Purchase Orders of products to be delivered in the first half of this year by CPH is now over A$1,00,000.

Today’s PO adds to a number of orders that CPH has secured in recent weeks, including three POs valued at over A$400,000 from current commercial partners. The company expects to fulfil these orders this quarter and bank the cash shortly after.

Also this month, the company finalised delivery of a second PO at A$318,841 to a South African subsidiary of Lupin International (NYSE: LUPIN). These products were delivered during January, allowing CPH to bank the total value of the order.

Balance sheet looks healthy - Look for the Quarterly Report in the coming weeks

Last week, CPH informed the market it had retained $6M in the bank as at Dec 31st 2020, with a further $1.7M received from the exercise of options.

With a revenue profile continuing to build, and some options being exercised, CPH seems to be in a stable position cash wise.

Before January 31st, CPH will need to release to market its financial position in a quarterly report, so that is something investors will be looking out for, and give us a closer look at the company’s complete financial position.

The US Democrats have now taken control of the Senate - expect US cannabis regulations to open up

As well as improved business and financial performance, the other thing going for CPH is the regulatory environment continuing to be positive for cannabis stocks.

Following Biden’s US Presidential win earlier this month, the US Democratic Party also secured the balance of power in the Senate, significantly increasing the near term potential for cannabis reform.

What’s next?

CPH keeps scoring revenue generating deals, and cannabis regulations are getting more and more relaxed.

After a dramatic rise from 3c to as high as 47c, CPH was a wild ride late last year.

Now, the price appears to have stabilised around the 23c mark.