Creso Pharma secures first purchase order from Red Light Holland to sell hemp CBD products in the Netherlands

Highlights:  

• Purchase order from Red Light Holland’s (“RLH”) wholly-owned distribution company SR  Wholesale for Creso Pharma’s cannaQIX® CBD lozenges and cannaQIX® hemp instant tea 

• PO valued at CHF152,220 (A$218,803i) – adds to Creso Pharma’s growing revenue profile 

• Hemp CBD products to be sold under existing Red Light Holland Brands including  iMicrodose – RLH has an established market presence, including over 25 Smart Shops across the Netherlands 

• SR Wholesale has an strong distribution network of over 400 companies that sell CBD and  other products across Europe, as well as access to another 1,000 points of sale across  Europe 

• Product development initiatives to combine functional mushrooms and other compounds  to Creso Pharma products ongoing  

• Strategic decision to utilise lozenge and tea delivery methods will provide speed to  market for new combinations and products 

• Additional orders anticipated in coming months with SR Wholesale expected to  considerably broaden Creso Pharma’s market penetration  

Creso Pharma Limited (ASX:CPH, FRA:1X8) (“Creso Pharma” or the “Company”) is pleased to advise that it has secured its first purchase order (“PO”) from Red Light Holland’s wholly-owned  distribution company SR Wholesale B.V. (“SR Wholesale”) for Creso Pharma’s leading range of Swiss  manufactured hemp CBD products. This marks the first purchase order between Red Light Holland  and Creso Pharma and an important step ahead of the creation of The HighBrid Lab. Both parties are  also aggressively pursuing product development initiatives to explore the potential of combining  functional mushrooms and other compounds with Creso Pharma’s existing product suite. 

The PO is valued at CHF152,220 (A$218,803i) for Creso Pharma’s cannaQIX® hemp CBD lozenges  and cannaQIX® hemp instant tea. The products will be introduced under the established iMicrodose  and/or other Red Light Holland brands.  

Pursuant to the purchase order, Red Light Holland and SR Wholesale will market and distribute the  products across the Netherlands. SR Wholesale has a very strong market presence in the  Netherlands, as well as an established distribution network of over 400 companies that sell CBD and  other products across Europe. This includes a number of sub-distributors, which provide access to  over 1,000 shops across the Netherlands, Spain, Germany, UK, France and Portugal.  

Creso Pharma’s Swiss-manufactured products use innovative buccal formulations that enhance  bioavailability of the active ingredients. Each product has been developed following considerable  capital expenditure and R&D undertaken by Creso Pharma’s experienced management team in  Switzerland. Notably, Creso Pharma’s hemp tea products are based on full spectrum hemp plants and  utilise innovative technology to optimise the hemp CBD content allowing for a superior product 

Suite 5 CPC, 145 Stirling Highway, | Nedlands, WA, 6009 | Australia Allemndstrasse 11 | 6310 Steinhausen | Schweiz 

CresoPharma.com (ASX: CPH) 

ABN: 89 609 406 911 

taste. The Company uses native tea instead of extracts allowing Creso Pharma to sell the product in  countries where hemp tea is considered food and hemp extract is regulated, enhancing Creso  Pharma and now Red Light Holland’s ability to expand market reach.  

This purchase order is an important first step in the potential merger of Red Light Holland and Creso  Pharma to create The HighBrid Lab. The introduction of these products will provide existing SR  Wholesale customers with a greater understanding of Creso Pharma’s leading products and  formulations. Management anticipates that the products will be well received by consumers, with  sales to underpin Red Light Holland’s growing revenue profile.  

Red Light and Creso Pharma management have made the strategic decision to introduce both  lozenge and tea products into the Netherlands market initially. Following ongoing product  development initiatives between the parties, these delivery methods have been earmarked for the  first potential combination products. Both Red Light Holland and Creso Pharma have been actively  pursuing the combination of functional mushrooms and other compounds into existing Creso  Pharma lines. Multiple innovative compound combinations and delivery methods are being explored  and both parties look forward to updating shareholders on progress in the near term.  

Red Light CEO and Director, Mr Todd Shapiro said: “Red Light Holland is a true believer in the  quality of Creso Pharma’s carefully curated and innovative hemp CBD products. SR Wholesale  already sells CBD products to a variety of locations in the Netherlands and thus we have the data to  show that CBD remains popular as a product category. We are extremely excited to be able to  capitalise on these consumer insights by introducing high quality, Red Light Holland branded CBD  products to our core market.” 

Creso Pharma’s Non-Executive Chairman, Adam Blumenthal added: “The maiden purchase  order between Red Light Holland and Creso Pharma is an important and strategic milestone for both  parties. RLH has a number of established brands in the Netherlands, which are well known and  trusted by consumers and to be able to white label our leading Swiss manufactured product suite  through these has a number of competitive advantages and the ability to considerably increase sales.  We look forward to leveraging SR Wholesale’s distribution network to create a strong foundation for  future growth.  

“We continue to work very closely with Red Light Holland’s management team to explore potential  product development initiatives which will involve the combination of functional mushrooms and  other compounds into our existing CBD product lines. We will initially focus on both lozenge and tea  delivery methods and leverage the existing knowledge to our Swiss-based management, as well as  Red Light Holland’s extensive experience to progress the introduction of these new products as  quickly as possible. 

“We anticipate that orders from SR Wholesale will grow in size and volume as customers and  consumers realize the significant benefits of our CBD products.”  

-Ends 

Authority and Contact Details 

This announcement has been authorised for release by the Creso Board 

For further information, please contact: 

Investor Enquiries

Suite 5 CPC, 145 Stirling Highway, | Nedlands, WA, 6009 | Australia Allemndstrasse 11 | 6310 Steinhausen | Schweiz 

CresoPharma.com (ASX: CPH) 

ABN: 89 609 406 911 

EverBlu Capital 

E: info@everblucapital.com 

P: +61 2 8249 0000 

Released through:  

Ben Jarvis, Six Degrees Investor Relations: Ph: +61 (0) 413 150 448  

About Creso Pharma 

Creso Pharma Limited (ASX:CPH) brings the best of cannabis to better the lives of people and  animals. It brings pharmaceutical expertise and methodological rigor to the cannabis world and  strives for the highest quality in its products. It develops cannabis and hemp derived therapeutic,  nutraceutical, and life style products with wide patient and consumer reach for human and animal  health.  

Creso Pharma uses GMP (Good Manufacturing Practice) development and manufacturing standards  for its products as a reference of quality excellence with initial product registrations in Switzerland.  It has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids. To learn more please visit:  www.cresopharma.com 

Forward Looking statements  

This announcement contains forward-looking statements with respect to Creso and its respective  operations, strategy, investments, financial performance and condition. These statements generally  can be identified by use of forward-looking words such as "may", "will", "expect", "estimate",  "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. The  actual results and performance of Creso could differ materially from those expressed or implied by  such statements. Such statements are qualified in their entirety by the inherent risks and  uncertainties surrounding future expectations. Some important factors that could cause actual  results to differ materially from expectations include, among other things, general economic and  market factors, competition and government regulation.  

The cautionary statements qualify all forward-looking statements attributable to Creso and persons  acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date  of this announcement and Creso has no obligation to up-date such statements, except to the extent  required by applicable laws.