Creso Pharma subsidiary expands into Canada’s biggest recreational market
Health & Biotech
Health & Biotech
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Special Report: Creso Pharma’s (ASX:CPH) wholly-owned Canadian subsidiary, Mernova Medicinal, has received more purchase orders for strains of its high-quality artisanal cannabis and expects to be selling into Canada’s biggest recreational market shortly.
Mernova has received three purchase orders for a total combined value of $C275,023 ($288,159), as well as a Notice to Purchase order from the Province of Ontario, regarded as Canada’s biggest recreational market with a quarter of the country’s market share.
The first order is valued at $C232,826 ($234,841) is from Truro Cannabis Company, a bulk order for Mernova’s HPG13, Lemon Haze and Mimosa dry flower strains of indoor grown, hand trimmed, hang dried, cured cannabis under the Ritual Green brand.
Creso has also received a maiden purchase order from the Yukon Liquor Corporation, in the amount of $C24,333 ($25,436) for the HPG13, Lemon Haze and Mimosa strains, and will be sold through the leading retailer, Triple J’s Canna Space, the first private retailer in the Yukon.
The third purchase order is from the Nova Scotia Liquor Corporation, for the Lemon Haze and Mimosa strains, and is valued at $C17,863 ($18,708), the fourth purchase order received from the NSLC.
Mernova has also received a Notice to Purchase order from the Province of Ontario for its HPG13, Lemon Haze and Mimosa strains, and expects to receive an initial purchase order in the near term.
‘Very strong progress’
“Mernova continues to make very strong progress in the Canadian recreational market,” says Mernova managing director Jack Yu.
“The three most recently secured purchase orders will contribute to Creso Pharma’s growing revenue profile and we expect additional orders to materialise in the very near term.
“We are proud to announce that Mernova has been chosen to become part of a very select group of licensed producers with cannabis products for sale in the Yukon.
“This is a major achievement for us, and we expect growth to continue across Canada and, with our pending entry into Ontario, Canada’s largest recreational market, we expect rapid growth to continue.”
The company is also exploring opportunities in the United States after the US House of Representatives passed the MORE Act, which approved in the Senate would decriminalise marijuana at the federal level. The Mernova facility is just 350km from the US border.
Creso also sees a “major opportunity” in Australia after a recent interim decision 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.