Creso Pharma (ASX:CPH) is set to be acquired by PharmaCielo, a Toronto listed cannabis company.
PharmaCielo is a fully licensed producer of medicinal cannabis oil products in Colombia and is the largest cannabis producer in Colombia.
It has a current market capitalisation of approximately CAD$675 million.
The offer for Creso is $122 million at $0.63 per share.
The proposed acquisition will combine two complementary cannabis companies to create a well-capitalised, publicly traded company with a strong growth profile and significant strategic advantages.
Shares in Creso Pharma (ASX:CPH) are trading 30.95 per cent higher at 55 cents.