Creso Pharma gains momentum with another big cannabis order in Nova Scotia
Health & Biotech
Health & Biotech
Link copied to
Special Report: The Canadian subsidiary of Creso Pharma (ASX:CPH) has received a second order for recreational marijuana after strong sales and pleasing customer feedback in the Canadian province.
Mernova Medicinal has delivered the second purchase order valued at $C138,960 ($146,800) to the Nova Scotia Liquor Corporation for two of Mernova’s premium strains, HPG13 and Lemon Haze, sold under the Ritual Green brand.
The Ritual Green products are being sold through Nova Scotia Liquor Corporation stores and its e-commerce platform. Operated by the Nova Scotia provincial government, the NSLC is the sole distributor of retail recreational cannabis in Nova Scotia.
Initial products have been well received, and Creso expects to receive additional orders in coming weeks for existing and new strains.
As previously reported, Mernova Medicinal received its first order from the NSLC last month, worth $C180,000.
“The second purchase order … from the NSLC reinforces the significant demand that we are witnessing for our retail product offerings, and further highlights Creso Pharma and Mernova’s potential as a supplier to a rapidly growing recreational market,” Mernova managing director Jack Yu says.
“Our products are seen as very high quality, and we are confident that the launch of initial strains under the Ritual Green brand will help position Mernova as a leader in the production of locally grown, artisanal cannabis products, and lead to recurring purchase orders from the NSLC.
“We will continue to ramp up production, and adjust our planning and grow scheduling, which will allow us to meet the supply chain demands of the NSLC and other provincial purchasers.
“Additional purchase orders and the launch of new strains are anticipated in the near term, and I look forward to updating shareholders upon these launches and additional sales.”
State of the art facility
Mernova has a state-of-the-art, GMP-ready Windsor facility in Nova Scotia that was completed towards the end of 2018.
The facility is 24,000sqft with the option to expand an additional 200,000sqft.
It has the potential capacity to produce up to 3,500kg of cannabis annually and expansion capability of up to 10 times this amount.
Creso has also picked up orders for its premium medicinal cannabis products in Israel, Pakistan and South Africa.
Israel in particular is recognised as one of the more active cannabis markets. Creso says Univo ordering from Mernova is a testament to the quality of its product.
Creso also sees “major opportunity” in Australia after an interim decision last month to loosen regulations around low-dose CBD oil, making it available at pharmacies rather than via a doctor’s prescription.
This article was developed in collaboration with Creso Pharma, 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.