Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) is changing its name to Melodiol Global Health Limited as it grows into a burgeoning internationally focused provider of high quality, plant-based products including recreational and medicinal cannabis, non-cannabis natural over-the-counter products, CBD solutions for human and animal health, and psychedelics.
Melodiol is a nod to the company’s focus on combining traditional plant-derived remedies with modern scientific expertise to bring safe, natural and efficacious products to market for a growing group of source-conscious consumers.
The board and management’s decision to undertake a change of company name has stemmed from a number of recent acquisitions, as well as being part of a broader strategy to position the company for further M&A opportunities in the US and other key markets.
Creso intends to seek shareholder approval for the name change at a future general meeting.
For the past seven years, Creso has been focused on assembling a strategic portfolio of businesses and brands with complementary strengths across manufacturing, processing, formulations and sales and distribution.
As the company continues to invest in revenue growth across the portfolio, it is aiming to leverage the collective strengths and efficiencies of the assembled group of companies to drive profitability.
By continuing to drive efficiencies, Creso’s aim is to absorb less of each M&A target’s existing cost structure with every subsequent acquisition, allowing a higher percentage of gross margin to flow directly to the consolidated entity for redeployment.
Management and board comments
Creso managing director William Lay said: “As we continue to integrate processes, products, brands, and talent across our portfolios, we intend to mark this pivotal moment with a new name that represents the global ambitions of the organisation.”
Non-executive director Adam Blumenthal added: “The proposed name change during Creso Pharma’s ongoing expansion is extremely timely given the ongoing shift towards potential cannabis decriminalisation in the US, increased level of corporate activity and international expansion.”