• Molodiol business Mernova achieves record sales for Q3 2023
  • Highest-ever weekly sales in Nova Scotia and $740,022 in purchase orders booked in for Q4 already
  • Management pursuing a number of initiatives to replicate the growth in Nova Scotia
  • An EU GMP license is pending for access to major sales opportunities outside Canada

 

Melodiol’s Mernova cannabis product business has received $740,022 in purchase orders from partners in Canada’s Novia Scotia province that will kick off what it expects to be a strong fourth quarter in sales this year.

This includes a significant single order to the tune of $573,873 from the Nova Scotia Liquor Corporation (NLSC) – Mernova’s largest volume province.

 

Mernova: High growth potential

Therapeutics business Melodiol Global Health (ASX:ME1) is seeing a steady uptick in the growth of its Mernova business across provinces and territories in Canada this year.

Mernova produces the ‘Ritual’ brand of cannabis products, which includes dried flower, pre-rolled joints and handheld vaporisers from its 24,000 sqft Nova Scotia facility that is scalable to 200,000 sqft.

To get a foothold of market share for these products, Mernova’s products typically contain >25% THC content, making them some of the highest THC products available on the Canadian market.

The growth potential is enormous. Canada’s cannabis industry is projected to reach US$2.9bn in 2023, and with an expected annual growth rate of 15.4%, its market volume will hit $US7.98bn by 2028.

Mernova’s products are currently available in eight provincial markets: Ontario, Saskatchewan, Nova Scotia, New Brunswick, Yukon, Manitoba, Newfoundland and more recently, Alberta, booking its first purchase order in September after gaining registration approvals.

 

Record sales

Mernova’s record revenues in Q3 of $1.849m are up 19% from full Q2 revenues of $1.547m and marks the third consecutive quarter of record revenue growth for Melodiol’s growing subsidiary.

During the period of 11-17 September, Mernova delivered its highest-ever sales week in Nova Scotia, earning $124,329 in product sales – accounting for an estimated 4.4% of total market share.

Melodiol says the introduction of new branding for Mernova’s ‘Ritual’ brand “positively impacted consumer behaviour, underpinned sales during the period”, and has been well received by retailers in Nova Scotia and other provinces.

 

Canada is booming, and there’s another market looming

“The most recent purchase orders and record sales week in the company’s largest market highlight the ongoing momentum that Mernova is generating. The new PO from the NSLC provides management with strong confidence that revenue will continue to grow in Q4 FY2023, which will cap off a remarkable period for the division.” Melodiol CEO William Lay says.

On other fronts, An EU Goods Manufacturing Practices (GMP) license is pending, which, if approved, will give it access to a huge cannabis market with major sales opportunities.

The company is also finalising vendor qualification SOP documentation and completing other compliance requirements.

 

 

This article was developed in collaboration with Melodiol Global Health, 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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