Creso Pharma probed by ASIC over securities trading, chairman Adam Blumenthal steps aside

Adam Blumenthal has stepped aside as chair of cannabis products developer Creso Pharma, while ASIC investigates suspected contraventions of share trading rules.

Adam Blumenthal has stepped aside as chair of cannabis products developer Creso Pharma as ASIC investigates suspected contraventions of share trading rules.

Cannabis products developer Creso Pharma has been served with a notice from ASIC, requiring it to produce documents in connection with an investigation into suspected contraventions by the company and staff in relation to trading in its securities.

Creso’s corporate adviser EverBlu Capital is also being investigated by ASIC.

The Australian Federal Police raided the Sydney CBD offices of EverBlu Capital on November 17 as part of its investigation into the alleged ramping of a cannabis stock.

“Creso Pharma appears to have become involved in the ASIC investigation because of common directorships between it and its corporate adviser, EverBlu Capital,” Creso told investors on Thursday.

Creso chairman Adam Blumenthal, who also chairs EverBlu Capital, on Thursday offered to stand aside from his role “in order to distance Creso Pharma’s operations and governance from the ASIC investigation.”

Creso has now accepted the offer with executive director Dr James Ellingford acting as interim chairman.

Creso has also established a standalone subcommittee to “address and respond to the ASIC notice and otherwise to co-operate with ASIC in its investigation”.

“Importantly, the existence of the ASIC investigation does not impact on Creso Pharma’s ability to continue to operate efficiently.”

Key business operations in Canada and Switzerland, which managed by in-country senior executives, have been quarantined from this matter, Creso said.

Creso shares were down 5 per cent at 9.4c on the ASX late Thursday morning.