Australian cannabis co Creso Pharma soars on Canada's PharmaCielo takeover offer

Pharmacielo

07/06/2019 01:38

** Shares of Creso Pharma  CPH.AX  soar as much as 36.9% to
a five-month high of A$0.575 on an acquisition offer 
    ** The cannabis co says it will be acquired by bigger
Canadian peer PharmaCielo  PCLO.V  for A$122 mln ($85.08 mln) or
A$$0.63 per share  urn:newsml:reuters.com:*:nFWN23D0KM
    ** The Australian co's board unanimously back the deal,
which represents a premium of 50% to Creso's last close of
A$0.420 
    ** Creso shareholders will get 0.0775 PharmaCielo shares for
every Creso Pharma share held
    ** As part of deal, PharmaCielo will extend a loan of C$3.5
mln ($2.62 mln) to Creso 
    ** Stock posts biggest intraday percentage gain since March
2017
    ** More than 2.1 mln shares change hands, compared with
30-day average volume of ~232,300
    ** Stock down >14% this year, as of last close 

($1 = 1.4339 Australian dollars)
($1 = 1.3353 Canadian dollars)

 (Reporting by Aditya Soni in Bengaluru)
 ((Aditya.Soni@thomsonreuters.com; +91 80 6749 1130; Reuters
Messaging: Aditya.Soni.thomsonreuters.com@reuters.net))