Creso Pharma's Canadian subsidiary Mernova Medicinal demonstrates strong uptake with new purchase orders

Creso Pharma Ltd (ASX:CPH) (OTCMKTS:COPHF) (FRA:1X8) wholly-owned Canadian subsidiary Mernova Medical Inc has secured purchase orders for its leading Ritual Green product range totalling C$494,131 (A$502,199), demonstrating ongoing strong uptake.

Mernova has received two separate purchase orders from the Ontario Cannabis Retail Corporation which operates as the Ontario Cannabis Store (OCS) for a total value of C$343,331.

The OCS is a crown agency solely owned by the Province of Ontario and reports directly to the Ministry of Finance and is Ontario’s only retailer and wholesaler of legal recreational cannabis.

This group provides legal cannabis to a large customer base through Health Canada approved suppliers.

Ontario is currently Canada’s largest recreational cannabis market and represents a major opportunity for the company.

Brand and sales campaigns underway

Mernova managing director Jack Yu said: “These purchase orders mark the company’s entry into Ontario, which is Canada’s largest recreational cannabis market.

“We anticipate that purchase orders will continue to grow in frequency, size and volume, especially with the launch of our latest premium, artisanal, craft strain, Black Mamba.

“To support the launch and increase brand awareness, Mernova has initiated a number of branding and sales campaigns, including on social media, in coordination with high profile Canadian influencers.”

Creso expects to deliver the first purchase order in the coming weeks, with the second PO to be completed shortly thereafter.

The company anticipates ongoing orders from the OCS over the coming months and expects them to increase in size and volume as Ritual Green’s market share continues to grow across Ontario.

Growth initiatives in progress

Mernova has also secured a repeat purchase order from Cannabis NB, New Brunswick’s only legal cannabis retailer, valued at C$81,800 (A$83,4021) for an assortment of its Ritual Green cannabis strains.

A purchase order has also been secured from the Nova Scotia Liquor Corporation for its Lemon Haze strain at C$69,000 – which will be delivered by the end of the month.

This marks the ninth PO for Mernova’s products in Nova Scotia, highlighting the company’s recurring revenue model.

Mernova expects additional purchase orders across all provinces to continue to materialise in the near term, adding to its growing revenue profile.

Cannabis NB is the government-owned retail cannabis monopoly in the Province of New Brunswick and has an established footprint, boasting 20 retail outlets across the province, as well as an online sales platform.

Yu continued: “Mernova has a number of growth initiatives planned in the coming months and we look forward to providing regular updates to shareholders.”

Story by ProactiveInvestors