• Mernova secures first cannabis purchase order from Alberta
  • Q3 revenues already breaking records with room for further growth
  • Performance lays groundwork for strong second half in 2023

 

Melodiol Global Health (ASX:ME1) wholly-owned Canadian subsidiary Mernova Medicinal has secured its maiden purchase order for cannabis products from the Alberta Gaming, Liquor and Cannabis Commission (AGLC).

The C$64,638 (A$74,063) order contributes to Mernova’s strong momentum in the September quarter, where it has already generated record revenues in Q3 to-date of  A$1.816m – up 21% from full Q2 revenues of A$1.5m and the third consecutive quarter of record revenue growth.

 

Alberta expansion helps drive revenue growth

The purchase order follows Mernova’s registration approval to become a cannabis representative from the AGLC, an Alberta government agency which regulates alcoholic beverages, recreational cannabis and gaming-related activities in the province.

“Melodiol’s maiden PO in Alberta highlights the incredibly strong brand recognition that the ‘Ritual’ range has achieved on a national level in a very short period of time,” managing director William Lay said.

“We look forward to working with the AGLC to highlight the superiority of our product range in the new province, while also continuing to push for additional orders.”

The order from Alberta, which is expected to be the first of many, helped contribute to the record revenue results achieved in Q3 to-date. Full revenues for the September quarter are expected to increase further with the receipt of more purchase orders before the end of this month.

Lay notes that the Alberta purchase order contributes to the division’s revenue and lays a strong foundation for the second half of 2023.

“The board and management remain very focused on driving sales, while progressing initiatives to reduce costs,” he added.

 

Strong regulatory compliance program

Along with another quarter of record revenues, Mernova took additional steps to ensure it continues to manufacture cannabis products that adhere to the highest Good Manufacturing Practices (GMP) standards. The company is in the process of finalising its vendor qualification SOP documentation, and addressing final gaps in consultation with regulators to complete its Quality Risk Assessment framework.

It has also advanced its Validation Master Plan documentation to formally align its development pathway with designated GMP steps and is working on a Site Master Plan to meet GMP requirements.

Mernova remains committed to building its North American presence across Canada, where the Government legalised access to cannabis for recreational and medicinal purposes on October 17, 2018.

In doing so, Canada became the second country in the world after Uruguay to formally legalise the cultivation, possession, acquisition and consumption of cannabis and its by-products.

Mernova also recently entered the cannabis market in Alberta, the eighth province where Mernova has been approved to sell its Ritual range of dried cannabis flower, pre-roll joints and electronic vaporiser products.

Alberta has a large volume of cannabis retailers, which collectively generate C$73.8m in monthly sales.

 

This article was developed in collaboration with Melodiol Global Health, a Stockhead advertiser at the time of publishing.  

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

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