The new purchase orders received by Creso’s subsidiary Mernova underpin the recent progress it has made in the Canadian cannabis market.
Global medicinal cannabis company, Creso Pharma (ASX:CPH), is making further traction in Canada following new purchase orders secured by its wholly-owned subsidiary, Mernova.
The purchase orders were for a combination of Mernova’s top-quality indoor grown, hand trimmed, hang dried, cured, artisanal, and craft cannabis products.
The total value is C$742,572 (or around $808k), and includes a bulk order for the Lemon Haze and Mimosa strains valued at C$185,742 (around $202k).
The company also continues to witness a strong interest in its dried flower and pre-roll joint range, Ritual Sticks.
The orders received were generated from Mernova’s provincial partners across New Brunswick, Nova Scotia, the Yukon and Ontario.
Mernova confirmed that it will continue to engage with these partners to explore the potential to expand the product range.
Amongst the new products it wants to focus on are the recently introduced 14 new strains under the established Ritual Greens brand.
Mernova anticipates sales of the Ritual Greens brand to grow over the coming months, with other pipelines in the works also expected to underpin further revenue growth.
“Recent purchase orders from both provincial partners and bulk suppliers highlight the traction we are generating in the Canadian market,” commented Mernova’s managing director, Jack Yu.
“We continue to receive very good customer feedback on our range of dried flower and pre-roll joint products, which is leading to strong consumer uptake.”
Tractions elsewhere
Creso Pharma is also expanding its presence in Europe through its Swiss-based health products distributor, MHG.
In September, purchase orders worth $337k were made for Creso’s cannaQIX hemp seed oil and cannaQIX 50 lozenges – both of which will be sold through MHG’s extensive sales channels that include countries such as Macedonia, Albania, Serbia, and Croatia.
Creso and MHG are also currently discussing potential additional purchases for the company’s animal health products.
In addition, Creso has also just launched a new e-commerce channel and marketing campaign, targeting its cannaDOL range.
The cannaDOL range is currently sold under the new sub brand, ‘Born to move’.
The e-commerce platform will initially target Swiss consumers, as the country presents a large addressable market.
Meanwhile, Creso’s psychedelics subsidiary Halucenex, has recently secured a monumental licence from Health Canada.
The Controlled Drugs and Substances Dealer’s Licence issued by the Canadian regulator will enable Halucenex to now progress its planned Phase II clinical trial, testing the efficacy of psilocybin on treatment-resistant post-traumatic stress disorder.
Securing the licence has also made Halucenex one of only a few companies globally with the Dealer’s Licence, allowing it to work with psilocybin and other psychedelics under Health Canada’s directive.
Importantly, the licence will fast-track the company’s Phase II clinical trial, which could unlock a number of future revenue-generating opportunities as the global psychedelic drug market is predicted to grow US$6.8 billion by 2027.
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.
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