Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s wholly-owned Canadian subsidiary, Mernova Medicinal Inc. has received approval to expand into the Canadian province of Alberta, as well as securing a total of A$553,957 in new purchase orders during the month of April.
Expansion into Alberta
Mernova has continued its in-country expansion, following registration approval to become a Cannabis Representative in the province, awarded by the Alberta Gaming, Liquor and Cannabis Commission (AGLC).
The new market entry highlights the eighth province that Mernova has expanded into since its inception and another potentially lucrative sales channel.
During 2022, Alberta had a total of 755 cannabis retailers which generated C$73.8 million in monthly sales.
Mernova is currently finalising the onboarding process with the AGLC and liaising with various category managers to commence the product listing process.
Further, the company intends to take part in an upcoming product call being undertaken by the AGLC during the current quarter to drive sales growth across the business division.
New purchase orders secured in April
Highlighting Mernova’s continued traction in the Canadian market, the group has secured a further A$553,957 (C$496,675) in purchase orders (PO).
The new POs are from a range of provinces, including the recently entered market Newfoundland and include the company’s dried flower, pre-roll joint and electronic vaporiser products.
The new POs follow the company’s record revenue growth in Q1 FY2023 of 46% on the last quarter to A$1,547,252 and the group’s maiden cash flow positive result.
Creso is confident that following the strong start to Q2 FY2023 and the recent expansion into Alberta, Mernova will continue to achieve sales growth.
“Strong foundation for group revenue growth”
Creso CEO and managing director William Lay said: “Mernova continues to make very pleasing progress across Canada and the approval to enter Alberta highlights the ongoing product demand the company is witnessing from provincial partners.
“The group will shortly be active in eight of Canada’s ten provinces and we look forward to continuing to build strong brand awareness with key retailers and consumers to drive sales.
“We are confident that further sales will materialise during the quarter, which will lay a strong foundation for group revenue growth.”