25/11/2021 - 13:00

Creso chair steps back following ASIC notice

25/11/2021 - 13:00

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Adam Blumenthal has stood aside as chair of Creso Pharma following notice of an ASIC investigation concerning common directorships between the company and its corporate adviser.

Creso chair steps back following ASIC notice
Medicinal cannabis products can be prescribed by doctors in WA, subject to approval. Photo: Matthew Brodeur/Unsplash

Adam Blumenthal has stood aside as chair of Creso Pharma following notice of an ASIC investigation concerning common directorships between the company and its corporate adviser.

Creso Pharma notified the ASX earlier today on Monday it had been served with an ASIC notice requiring it to produce documents in connection to an investigation, which the company has said includes suspected contraventions by Creso and other representatives in relation to the trading of securities.

The company has said the notice should not be construed as an indication that it had broken the law, nor as a reflection upon any person or entity.

Mr Blumenthal, who chairs Creso adviser EverBlu Capital, has now resigned his position as chair of Creso Pharma to distance the company from ASIC’s investigation.

Executive director James Ellingford will step in as interim chair and will sit on a subcommittee of the board that will address and respond to the ASIC notice and cooperating with the commission’s investigation.

Creso has noted its operations in Canada and Switzerland are unaffected by the matter.

Today’s news follows the hiring, and subsequent resignation, of Brian Walker as a consultant earlier this month.

Dr Walker resigned the position after acknowledging it may have given rise to a perceived conflict with his role chairing a select committee into cannabis and hemp, with Creso similarly acknowledging the matter in a release to the ASX.

Shares in Creso were trading at $0.09 at 1.30pm AEDT.

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