Creso Pharma subsidiary granted amended cannabis 2.0 licence in Canada
Health & Biotech
Health & Biotech
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Aussie pot stock Creso Pharma is in a prime position to capitalise on the burgeoning Canadian premium, craft cannabis sector after its subsidiary was granted an amended cannabis 2.0 licence in Canada.
The wholly-owned Canadian subsidiary of Creso Pharma (ASX:CPH), Mernova Medicinal (Mernova), has received approval from Health Canada for an amended cannabis 2.0 licence permitting the sale of cannabis extracts, electric vaporisers, edibles and topical products.
The licence amendment builds on CPH’s original sales licence from Health Canada and provides Mernova with the opportunity to directly sell its Ritual Gold vaporiser 2.0 products through all approved provincial partners.
CPH will leverage its cannabis licence to enter new provincial markets, which could not be accessed previously due to contract manufacturing relationships.
The company is confident receipt of this licence will allow the Ritual Gold range to enter at least two new provinces imminently and additional provinces in the medium to short term.
Creso Pharma will also progress ongoing product development opportunities to fully capitalise on its cannabis 2.0 licence.
CEO and managing director William Lay said being granted another licence amendment from Health Canada highlights the calibre of their Canadian operations and the significant opportunity the company is pursuing in the premium, craft cannabis space.
“While we have been witnessing sales of our Ritual Gold products through select provinces this was limited due to contract manufacturing relationships,” Lay said.
“The amended licence should allow us to enter at least two new territories with the Ritual Gold range imminently.
“We plan to immediately leverage the cannabis 2.0 licence and have already entered discussions with key province partners.”
The amended licence is further good news for Creso Pharma following reports that regulatory progression on the US cannabis front is getting closer.
At a US Senate debate on Sunday Senate Majority Leader Chuck Schumer said Congress is “very close” to passing a cannabis banking and expungements measure.
Creso is well prepared to leverage its recently acquired US-based business Sierra Sage Herbs LLC alongside Mernova to review US-focused opportunities in the lead up to any potential decriminalisation.
In a further positive boost Creso has delivered total group revenue of $2.05m for Q3, a 77% increase on the pcp, and a 30.7% increase on the last quarter.
The Q3 revenue takes Creso’s unaudited year-to-date revenue to $6.37m – already exceeding CY21.
Growth was underpinned by sales into North America from Sierra Sage Herbs and Mernova, as well as Creso Pharma Switzerland.
During Q3 Creso secured a non-binding term sheet to acquire Health House, a company that generated $4.6m in cash receipts during the quarter driven by its strong revenue performance in Australia.
The acquisition of Sierra Sage Herbs was also completed in the quarter, providing Creso with a maiden entry into the large US market.
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.