The paper "Finаnсiаl Instruments and Markets - Creso Pharma Company and Adalta Company" is a perfect example of a finance and accounting case study. Creso Pharma is looking into raising $5,000,000 of capital through the issuance of 25,000,000 shares at an issue price of $0.20, (Creso Pharma Prospectus, 2016, p. 14). The company does not accept any minimum and maximum issue price. Underwriter The company does not indicate any company as their underwriter, which means they issue the shares on their won. Underwriters usually facilitate the selling of shares at IPO on behalf of a company.
They can also arrange with institutional investors to sell shares (Chemmanur, Hu and Huang, 2010, p. 2). Creso Pharma main Business Activity Creso Pharma deals in medical and therapeutic products through commercializing pharmaceutical-grade cannabis and Hemp-based nutraceutical products. The company is raising capital in order to facilitate the development of technology-driven products that contain cannabis as an ingredient for therapeutic and medical purposes. Key Company’ s Personnel Executive Chairman The executive chairman is Boaz Wachtel and the co-founder of Creso Pharma Company. He was a former Managing Director at MMJ-Phytotech Limited. Apart from that, Boaz is a certified research manager and graduated in the University of Maryland as a holder of MA in Management and Marketing.
Despite working with the government and various NGOs as a medical advisor, Boaz was the founder of the Green Leaf Party. He was also an active participant in the implementation of National Medical Cannabis Program. Managing Director and Co-Founder The managing director is Dr. Halpherine Wernl, a co-founder of Creso Pharma. Dr. Halpherine has worked in the biopharmaceutical industry for over 25 years of leadership on a strategic and operational capacity.
She has been a proficient personality and holds a legacy in product development, research and development, and strategic marketing. Her skills and experience in the biopharmaceutical industry cut across various aspects such as drug development, registration and strategic marketing. With exceptional experience in a busy and highly established health environment in Australia and beyond, Dr. Halpherine qualifies to offer leadership in Creso Pharma in areas of product development, strategic marketing and corporate governance.
Adalta, 2016. Prospectus. Retrieved from http://adalta.com.au/wp-content/uploads/2016/07/AdAlta-Prospectus-FINAL-web.pdf
Business News Australia, 2016. ADALTA LAUNCHES $10M IPO TO DRIVE FIBROSIS TREATMENT. https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0ahUKEwiQxIzmmt3PAhWqJsAKHSLYDYIQFgg7MAU&url=http%3A%2F%2Fwww.businessnewsaus.com.au%2Farticles%2Fadalta-launches--10m-ipo-to-drive-fibrosis-treatment.html&usg=AFQjCNF4UzRc-Z2dIYH6kpFSdMXkdG8enQ&sig2=Zni0Ju69HSHjxRgfBFL0rA&bvm=bv.135974163,d.ZGg&cad=rja
Chemmanur, T.J., Hu, G. and Huang, J., 2010. The role of institutional investors in initial public offerings. Review of Financial Studies, 23(12), pp.4496-4540.
Chen, A., Chen, L.W. and Kao, L., 2010. Leverage, liquidity and IPO long-run performance: evidence from Taiwan IPO markets. International Journal of Accounting & Information Management, 18(1), pp.31-38.
CRESO PHARMA LIMITED, 2016. ACN 609 406 911 PROSPECT. Retrieved from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjIt6Szn93PAhULiRoKHXhICnUQFggbMAA&url=http%3A%2F%2Fcresopharma.com%2Fwp-content%2Fuploads%2F2016%2F07%2FCreso-Pharma-Prospectus.pdf&usg=AFQjCNFwrmPtdfiF9n1g7JMCr_WlSPIPwg&sig2=gHvl2NYqgSCOVJHBRbNP0g&bvm=bv.135974163,d.ZGg&cad=rja
Finnews Network, 2016, Medicinal cannabis provider Creso Pharma to list on ASX. http://www.finnewsnetwork.com.au/MediaCenter/MediaCenter.aspx?site=FNN09&gareport=Medicinal-cannabis-provider-Creso-Pharma-to-list-on-ASX&LNID=123979&ntype=News&search=Creso-Pharma
Hanley, K.W. and Hoberg, G., 2012. Litigation risk, strategic disclosure and the underpricing of initial public offerings. Journal of Financial Economics, 103(2), pp.235-254.
Lowry, M., Officer, M.S. and Schwert, G.W., 2010. The variability of IPO initial returns. The Journal of Finance, 65(2), pp.425-465.