Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) is moving to capitalise on opportunities presented by the ‘Marijuana Opportunity Reinvestment and Expungement’ (MORE) Act, which passed through the US House of Representatives on Friday, April 1, 2022, with 220 votes in favour and 204 against.
The act represents a major milestone for federal decriminalisation of marijuana, which so far has been met with high resistance from federal bodies despite the majority of US states passing decriminalisation or legalisation acts.
Only 11 of 50 states in America do not offer any kind of access to marijuana, medical or otherwise. Until now the disconnect between state and federal policing made for sticky jurisdictional issues, which decriminalisation would ease.
The MORE Act is designed to remove cannabis from the US Controlled Substances Act and erase related federal convictions, opening the way for broader investments and higher corporate activity in the US cannabis industry should it pass the Senate and be made into law.
Act highlights shifting US attitudes
“The passing of the MORE Act through the House of Representatives is a positive development for cannabis legalisation,” Creso Pharma CEO and managing director William Lay said.
“It highlights the ongoing shift and major acceptance of cannabis products and their use in the US, as well as the potential market opportunity that Creso Pharma can immediately capitalise on if the bill is passed into law.
“In planning for a scenario where the bill passes through the Senate, we have continued to work diligently to monitor the US market and identify opportunities to unlock value for shareholders.
“The company also has contingency plans in place which may allow for exposure to the US market in a scenario where the MORE Act is not passed into law.
“We look forward to providing shareholders with additional updates over the coming months.”
The US cannabis market is anticipated to grow to US$130 billion by 2024, a market share both Creso and the federal government are interested in capitalising on.
The MORE Act proposes a tax on cannabis sales that would be used to fund job training, mentoring, legal aid, and other initiatives beneficial for socially and economically disadvantaged groups.
Creso Pharma has been pursuing exposure to the US market for some time, already in the midst of acquiring Denver-based Sierra Sage Herbs.
Once the acquisition is completed, Creso will be one of the only ASX-listed companies with established North American operations focused on the cannabis sector.
Creso is also continuing to advance several other US-focused growth initiatives ahead of potential federal decriminalisation.
The company anticipates that any additional positive legislation changes like the MORE Act will have the potential to directly benefit Creso, especially given the company’s proposed dual listing to the NASDAQ, which is currently in progress.
About Creso Pharma
Creso Pharma plans to bring the best of cannabis to better the lives of people and animals through its pharmaceutical expertise.
The company uses GMP (Good Manufacturing Practice) compliant development and manufacturing standards for its products as a reference for quality excellence with initial product registrations in Switzerland.
Creso Pharma also has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.