Red Light Holland, Creso Pharma Walk From Merger Due To COVID Headwinds
Red Light Holland (CSE: TRIP) and Creso Pharma (ASX: CPH) evidently have elected to walk from their previously announced merger arrangement. The termination is being blamed largely on the impacts of the ongoing COVID-19 pandemic.
“Unfortunately, the geographic span of our respective businesses made a merger at this time impractical,” commented Creso’s Chairman Alex Blumenthal.
Among other items related to the previously proposed merger, significant global travel restrictions were identified as a major headwind to bringing the two firms together, with both firms featuring sprawling global operations. The limitations were expected to make integration difficult across all business units, thereby heavily limiting the previously anticipated synergies that the merger would bring.
Despite the merger being mutually terminated, it appears that not all has been lost. The two firms will continue to work together on a go-forward basis, with Creso seeing its products white-labelled by Red Light and distributed across the firms current wholesale channels.
Red Light Holland commented that it will continue to look for M&A opportunities within North America, and that Bruce Linton will remain as Chairman of the firms Advisory Board.
Red Light Holland last traded at $0.26 on the CSE.
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