Creso Pharma Limited (ASX:CPH, OTC:COPHF, FRA:1X8) (‘Creso Pharma’ or ‘the Company’) is pleased to advise it has signed anon-binding, non-exclusive Heads of Agreement (HoA) with one of Australia’s leading tattoo post care company Dr Pickles Pty Ltd. (“Dr Pickles”), providing Creso Pharma with a potential pathway into the Australian body care market.
Dr Pickles is a Brisbane-based company, founded in 2010. The group was established due to the lack of petroleum jelly based alternatives for people with fresh tattoos. Dr Pickles’ product suite is cruelty and paraben free, all natural and manufactured in Brisbane. Under the HoA, the parties have agreed to enter into a Collaborative Agreement on or before 29 July 2022 (“Expiration Date”), with the parties being able to extend this time frame by mutual agreement (“Collaborative Agreement”).
The HoA can be terminated upon either party giving written notice at any time prior to the execution of a Collaborative Agreement. There has been no consideration set between the parties under the HoA. This Collaborative Agreement is intended to set out the terms upon which Creso Pharma and Dr Pickles will:
- 1. Commercialise select products from Creso Pharma’s target acquisition company, Sierra Sage Herbs’ (SSH) portfolio in the Australian market.
- With direct distribution into over 800 tattoo studios across Australia, an e-commerce database of over 20,000 direct customers and a sales network which extends through barber shops, pharmacies and Woolworths stores nationally, Dr Pickles is one of Australia’s largest and most popular tattooaftercare products supplier.
- The initial focus is expectedto be on the introduction of SSH’s tattoo aftercare and sunscreen products with broad scope to expand the product range.
- 2. Explore the opportunity to bring select products from the Dr Pickles range to North American markets via SSH’s distribution network.
- SSH’s points of sale include leading pharmacy chains and major retail groups such as CVS, Walgreens, Rite Aid, Albertsons Companies, Whole Foods, Walmart, AmazonUS and Target.com amongst others.
- 3. Explore further commercialisation options for current and future innovative products.As previously advised,CresoPharmahasexecuted a definitive agreement to acquire US-based Sierra Sage Herbs (SSH)(refer ASX announcement: 3 February 2022). The transaction is expected to completein June 2022, subject to final approval by vote of Creso Pharma shareholders. SSH is a leading consumer packaged goods company focused on plant-based and CBD products under the Green Goo, Southern Butter and goodgoo brands offering products in the CBD, first aid, beauty, sexual wellness, women’s health and pet categories.
CEO and Managing Director William Lay said: “We’re delighted to partner with Dr Pickles to launch our Green Goo body care products in Australia. The group’s passion for bringing the highest-quality products to consumers has propelled their success and makes them a perfect partner for Creso Pharma. We’re looking forward to working closely with the Dr Pickles team on exploring multiple product and branding opportunities which have the potential to drive sales for both parties.”
CEO and Co-Founder of Sierra Sage Herbs Jodi Scott said:“We believe our Green Goo products will be well received by Australian consumers because they are all-natural, plant based and highly effective. Finding the right partner is critical for us entering Australia and with Dr Pickles we have met another highly successful family enterprise and identified several additional synergies that have the potential to unlock shareholder value.Dr Pickles have built a wonderful brand which holds tremendous appeal with consumers and has a great fun personality.We are very much looking forward to working with Xenon, Nigel and the whole Dr Pickles team.”