The Creso Pharma Ltd (ASX: CPH) share price has been a strong performer on Monday morning.
At one stage today, the cannabis company's shares were up as much as 11% to 25 cents.
The Creso Pharma share price has since pulled back a touch but remains 4.5% higher at 23.5 cents.
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Why is the Creso Pharma share price racing higher?
Investors have been buying Creso Pharma shares after it announced its expansion into the Pakistan market.
According to the release, the company has signed a comprehensive distribution agreement with leading nutritional supplements company, Route2 Pharm.
The agreement will see Route2 Pharm import, market, distribute, and sell the company's hemp derived therapeutic products exclusively into Pakistan and The Philippines. Route2 Pharm will also have non-exclusive rights to other potential target markets including Cambodia, Afghanistan, Azerbaijan, Bangladesh, Georgia, the Maldives, Myanmar, Tajikistan, Turkmenistan, Uzbekistan, and Vietnam.
The release explains that Route2 Pharma is a subsidiary of Route2Health. It has over thirty years of pharmaceutical sciences experience and produces and distributes world-class herbal remedies and dietary supplements. Route2Health is based in Pakistan and has United States Pharmacopeia (USP) GMP compliant manufacturing facilities and global partnerships.
As part of the agreement, to retain its exclusivity rights in Pakistan and The Philippines, Route2 Pharm must make minimum order quantities worth approximately $2.5 million a year.
Creso Pharma's Non-Executive Chairman, Adam Blumenthal, commented: "This Agreement has the potential to take Creso into markets with a combined population of over 750 million people. Our mission is to deliver access to affordable, high quality, broad spectrum, GMP products for the betterment of people's lives everywhere. We're delighted to conclude this important partnership, through which we hope to provide the opportunity for millions of people to have access to our innovative products."
This latest gain means the Creso Pharma share price is now up 31% since the start of the year.
