Remember ASX cannabis shares? Well, this one is rocketing 50% today

The Creso Pharma Ltd (ASX: CPH) share price is soaring 40% today. However, earlier, the company’s share price exploded 70%.

ASX cannabis shares Incannex Healthcare Ltd (ASX: IHL) and Bod Australia Ltd (ASX: BOD) are also up 6% and 14% respectively today. For perspective, the S&P/ASX 200 Health Care Index is climbing 0.33%.

Let’s take a look at some recent announcements from this ASX cannabis share.

What’s happening?

Creso Pharma advised the market today that it is no longer under ASIC investigation.

In November 2021, ASIC served Creso a notice requiring it to produce documents in connection with an investigation. This year, in August, Creso received a further notice from ASIC.

Today, Creso said it has received a letter from ASIC confirming that the scope of the investigation “no longer includes any suspected contraventions by Creso Pharma” or any directors of the company.

Commenting on this news, Creso said:

The board of the company does not expect that any enforcement action will be taken against Creso Pharma, or any of its current officers or employees.

The company has provided, and continues to provide, assistance to ASIC, as required.

What else?

Yesterday, Creso advised it has signed a scheme implementation deed to acquire Health House International for $4.6 million.

This deal will provide Creso with “another revenue generating operating division”.

Meanwhile, on 18 November, Creso announced Mernova Medicinal has received its largest ever purchase orders from Saskatchewan. Mernova Medicinal is a wholly-owned Canadian subsidiary of Creso Pharma.

Creso Pharma share price snapshot

The Creso Pharma share price has descended 72% in the past year. In the year to date, Creso shares have lost 66%.

For perspective, the ASX 200 healthcare index has descended 9% in the past year.

This ASX cannabis share has a market capitalisation of nearly $51 million based on the current share price.

The post Remember ASX cannabis shares? Well, this one is rocketing 50% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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