Special Report: Creso Pharma’s Canadian growing facility is gearing up for launch.  

Creso Pharma’s (ASX:CPH) Canadian medical cannabis cultivation subsidiary Mernova has streamlined operations as it ramps up production ahead of the launch of its premium retail products.

It says the changes have delivered tangible improvements to cannabis quality, with increased yields soon to follow.

Following the receipt of its sales licence from Health Canada, Mernova focused on increasing productivity at the facility to ensure it is well placed to meet demand from initial retail market purchase orders.

Creso says Mernova’s initial premium products will be dried flower in its natural form with others such as extracts and pre-rolled joints soon to follow.

It is in talks with several parties in North America to sell dried flower and cannabis 2.0 products.

Picture: Mernova’s Lemon Haze  (above) and PG-13 products (below) utilising the new post-harvest processes (Source: Mernova)

“Mernova has been busy setting the stage for its retail product launch and we are delighted with the level of activity achieved over the past few months, even amidst the backdrop of challenging global conditions,” Creso Pharma CEO and cofounder Dr. Miri Halperin Wernli said.

“The Mernova team, led by Jack and Isaac, is building a strong track record of continually finding innovative ways to improve the quality of its cannabis products and I believe this is ultimately what will set Mernova apart from its competition in both the recreational and medicinal markets.

“Alongside the streamlining of operations, discussions are also underway with a number of potential customers in the Canadian market and we look forward to updating shareholders on developments when appropriate.”

As Mernova continues to scale up production towards nameplate capacity, it has also initiated several proprietary processes to enhance product quality to meet a growing demand for small batch, artisanal cannabis products in Canada.

Improvements have recently been made to Mernova’s post-harvest processes, and are already having positive effects on the aroma, appearance, feel, and overall quality of the cannabis.

“This is an exciting time at Mernova as we get closer to launching our premium retail product range,” Mernova Managing Director Jack Yu said.

“Early in our planning, we identified that the premium market is looking for high quality cannabis, specifically indoor grown, small batch, artisanal product that isn’t grown under the same ‘factory’ processes used by a number of the large-scale cannabis producers.

“We saw this as a massive near-term opportunity for Mernova and we believe we are now well placed to fill this gap in the market.

“Following the implementation of several proprietary processes, we are confident that we are now producing some of the best legal cannabis in Canada, which sets us apart from many of our peers, and we look forward to reporting on sales and supply agreements when we are able.”

The state-of-the-art, GMP-ready indoor Windsor facility is located in Nova Scotia, Canada and 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.

The Windsor facility received its licence to cultivate from Health Canada in February 2019. All Mernova plants are 100 per cent indoor grown and fed hydroponically, allowing for the cultivation of high quality and high margin products.

 

This story was developed in collaboration with Creso Pharma, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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