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Creso Pharma (ASX:CPH) is set to quadruple its global footprint as it’s acquired by Canadian cannabis company PharmaCielo.

And that move is now a step closer, thanks to Creso paying down $5.2 million of its debt, satisfying a key condition of the acquisition deal.

Creso told the market in early June that it would be bought out by PharmaCielo, a shareholder in the company, for $122 million.

The deal marks the first takeover among Australia’s listed medical cannabis companies, Rachel Williamson wrote for sister publication Stockhead.

Creso reduced its debt by $5.2 million through the issue and conversion of convertible notes.

PharmaCielo, listed on the Toronto Stock Exchange, has a market cap of around $743 million and operations in Canada, South America, Mexico and Italy, which will add to Creso’s active network currently spanning 13 countries, Creso CEO and co-founder Dr Miri Halperin Wernli, pictured, told investors.

“Paying off this debt is a significant milestone in the proposed acquisition of Creso by PharmaCielo. We look forward to completing the transaction, which will result in a vertically integrated company that will quadruple our global footprint, with a presence in more than a dozen countries across North and Latin America, Switzerland, Europe, the Middle East, Australia and New Zealand,” she said.

An Australian court will need to approve the deal, which is being done via a scheme of arrangement.

This content is produced by Star Investing in commercial partnership with Creso Pharma.  This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.