Creso Pharma Trading Halt Due To Police Raid On Sydney Stockbroker EverBlu Capital.. Both Companies Helmed By Same Man

This has been the big financial story this week in Australia and we had wondered why Creso had issued their trading halt message the day before yesterday.

It appears that Creso isn’t collateral damage… It is the damage

This man plays a leading role in both companies

Adam Blumenthal

  • Non-executive chairman and co-founder at ASX-listed Creso Pharma
  • EverBlu executive chairman


We reported at CLR 16 November 2021

Australia - Creso......ASX Trading Halt

Australia – Creso……ASX Trading Halt


The Australian Financial Review has the story

A $160 million cannabis products company is at the heart of ASIC’s interest in Sydney stockbroker EverBlu Capital, and associated raids in Sydney and on the Gold Coast. EverBlu executive chairman, Adam Blumenthal, doubles as non-executive chairman and co-founder at ASX-listed Creso Pharma, and is often seen as the market face for the stock.

Creso Pharma was set up to develop, register and commercialise pharmaceutical-grade cannabis and hemp-based nutraceutical products and treatments in 2015, and listed on the ASX in 2016.

It is the sort of stock that bounces around at the smaller end of the market, at the whim of day-traders and at times online investing forums. It has closed everywhere from 8¢ a share to 15¢ in the past month.

Source: Google


Creso stock was sold off heavily on Tuesday afternoon, following Street Talk’s report that EverBlu had been raided. It was the logical target, given EverBlu’s close ties to the company.

The ASX stopped Creso shares trading when it was down 9.6 per cent to 12¢ at 3.31pm, Sydney time, because of the quantum of the fall and volume of stock traded.

Source: Creso Website

There were other raids in connection to the investigation, including on the Gold Coast. The exact nature of the investigation is not known, although ASIC is expected to be keeping an open mind to see what if any evidence turns up in the raids.

Creso has also been frantic issuer in terms of news – 75 announcements to the ASX in the past five months including everything from M&A deals, to customer contracts, distribution agreements, a potential NASDAQ listing and an options issue to raise capital – as it tries to crack the big time in North America and Europe.

Source: Creso Website

Blumenthal’s been involved with Creso Pharma from day dot, and EverBlu has helped its corporate activities along the way. Most recently it was named as corporate adviser in a Creso options issue prospectus in October.

He’s also a substantial Creso Pharma investor, owning a 10.3 per cent stake and a bunch of listed options. He sold a large parcel of shares in early July.

A spokesperson for EverBlu Capital declined to comment on whether ASIC’s investigation related to Creso Pharma.

Source: EverbluCapital Website

She earlier said: “EverBlu Capital confirms it is co-operating with the regulator regarding an external matter. It will continue assist the regulator as required.”

Creso Pharma also declined to comment.

Source The Australian Financial Review


They have also followed up the story with an update

Creso Pharma yet to verify relation to Everblu raids

Creso Pharma – the cannabis stock thrust into a trading halt on Tuesday after the offices of its chairman’s Sydney-based corporate advisory Everblu Capital were raided by police – says it is “not aware” of any information that would explain the sharp fall in its share price and large increase in trading volume.

The company said it was aware of the raid, although it “is yet to be able to independently verify the nature of the enquiry or determine whether the matter relates to Creso Pharma Limited”.

“The company confirms, however, that it has not been served with any notices from any regulatory body in connection with the matter,” Creso said responding to an ASX price query late last night.

“As a result, the company does not consider there to be any basis for it to make public announcement in relation to this matter.“



It is worth also highlighting  that we  have reported over the past fortnight the fact that recently voted to the WA Australian Senate, Dr Brian Walker (under a cannabis ticket)  had been invited to join Creso as a non-executive director at around the same time as he was about to take the chair at a WA Parliamentary Committee Into Cannabis & Hemp

Dr Brian Walker


This is the Creso press release

Creso Pharma has appointed Legalise Cannabis WA MP Dr Brian Walker as a strategic consultant and chair of its new Scientific Advisory Committee.


The committee has been formed to expand the company’s pharmaceutical expertise and accelerate R&D, product development and clinical trials ahead of a potential NASDAQ listing

Dr Walker will oversee and provide input into Creso’s medicinal cannabis, hemp and psychedelic products.

He will work across all the firm’s divisions including wholly owned Canadian subsidiary Mernova, psychedelics arm Halucenex Life Sciences and its Swiss operation.


Cannabis Law Report Stories

Legalise Cannabis WA MP Brian Walker denies conflict over medicinal cannabis company

WA: Legalise Cannabis MP Brian Walker resigns from medicinal cannabis company over conflict concern

WA Parliamentary Committee Into Cannabis & Hemp Has Re-Jigged How MP’s Declare Interests


Considering these recent developments in Sydney it might be incumbent for Dr Walker to resign his position as Chair and allow another member of the committee to assume the role.

Also See–c-4582235

Creso Pharma (ASX:CPH) share price down 6% after speeding ticket

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