Creso’s application to become licensed producer of medical cannabis accepted by Health Canada
Special Report: Creso Pharma’s Canadian subsidiary Mernova Medicinal has just hit a major company milestone.
Creso (ASX:CPH) told investors this morning Mernova’s application for a Cultivation License under the Access to Cannabis for Medical Purposes Regulations (ACMPR) has been accepted by Health Canada.
Once the Health Canada Cultivation Licence is in hand, Mernova will plant its first cannabis crop in the new, 24,000 square foot (2,200 square metre) purpose-built, indoor growing facility based in Windsor, Nova Scotia.
The first crops are expected to be in the ground by the end of the year.
After successfully growing two cannabis crops, the company says Mernova will then apply for a sale license – the final stage in producing commercial cannabis crops.
Mernova hopes to make its first revenues from the sale of cannabis in the first quarter of next year.
“Creso is close to achieving one of its major strategic objectives, to supply consistent, high-quality medical cannabis products to its global markets,” said Creso chief and co-founder Dr Miri Halperin Wernli.
“The purpose-built Mernova facility has been constructed to full GMP standards, making it superior to other cultivation facilities. It is designed to produce three to four ton of dry cannabis annually.”
The company says future plans include expanding the Mernova facility by a further 200,000 square feet, putting Creso in a good position to become one of the top producers in the Canadian cannabis market.
To fast-track its initial plans, Creso also announced it will finalise the facility’s construction with the help of a $2.4 million construction finance loan.
The company is looking to meet the increasing demand for recreational and medicinal cannabis products, particularly across Canada, where recreational cannabis becomes legal later this month.
Deloitte Canada has projected Canada’s recreational cannabis market is worth up to CAD $8.7 billion and that similar-size Canadian-listed cannabis companies with facilities of between 15,000 and 25,000 square feet, have, on average, a market value of CAD $64.95 million.
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