Creso Pharma Ltd’s (ASX:CPH) (FRA:1X8) wholly-owned Canadian subsidiary, Mernova Medicinal Inc. has secured four new purchase orders with a total value of C$242,842 (A$248,6821 ) for its high-quality, indoor-grown, hand-trimmed, hang-dried, cured, artisanal, craft cannabis, in dried flower form, sold under the Ritual Green brand.
The new orders include a maiden PO from Cannabis NB, the government-owned retail cannabis monopoly in the Atlantic Canadian Province of New Brunswick, marking Mernova’s entry into the province.
"2021 should be promising"
Mernova managing director Jack Yu said: “To receive our first PO from the Province of New Brunswick, as well as additional POs from the NSLC and the Yukon, is a great way for Mernova to start the year, and shows that 2021 should be promising for us.
"New Brunswick is proving itself to be a rapidly growing market, with strong demand for cannabis, and we are excited to have Ritual Green products for sale online, and in stores province-wide.
“Sales in the Yukon are proving to be stronger than anticipated, with Triple J’s Canna Space selling out of all Mernova products purchased in their initial order.
“We expect this trend to continue, given the high demand for our products, and look forward to filling a number of new POs expected shortly.
Great interest in Black Mamba strain
“In a major development, we are also excited to have launched our Black Mamba strain.
“We are very excited for our customer base to try our latest premium quality Ritual Green offering.
“There has been great interest in this strain, and we expect Black Mamba to be as well received as the rest of the Ritual Green family of products.
"These latest POs show that our Ritual Green brand products continue to gain traction, and that we are developing a reputation for quality.
“Product sales on a province-by-province basis are progressing well, and we look forward to the imminent launch of our Ritual Sticks, and Ritual Black brands. We are just getting started.”
New Brunswick market
New Brunswick is an important market for Creso and Mernova, and provides another opportunity for the company to grow its revenue streams.
Cannabis NB has an established footprint in the province through 20 brick and mortar stores, and its online sales platform.
In the quarter ended September 2020, the group sold C$20.1 million worth of cannabis - a 23% quarter-on-quarter increase.
Mernova expects ongoing purchase orders from Cannabis NB in the coming months.
Despite having a smaller population than Nova Scotia, New Brunswick generates similar revenues from cannabis sales.
Three of Mernova’s Ritual Green strains are now available for sale online and through all 20 stores province-wide.
Yukon order
A second PO has been received from the Yukon, valued at C$43,842 (A$44,9031).
This PO is a combination of a repeat order from Triple J’s Canna Space and the first order from the Herbary, and also includes the new Black Mamba strain.
NSCL order
Mernova has also received two additional POs from the Nova Scotia Liquor Corporation (NSLC) totalling C$104,200 (A$105,9231).
Importantly, one of these POs marks Mernova’s first-ever order for Black Mamba, the latest premium quality offering to be sold under the Ritual Green brand.
Black Mamba
Black Mamba is an Indica dominant strain, testing at over 20%+ tetrahydrocannabinol (THC) content.
The company expects the introduction of Black Mamba to further bolster the size and volume of pending orders across all provinces.
Ritual Green product range being sold out
Mernova continues to see significant demand for its Ritual Green product range with a number of large retail locations across Canada currently being sold out, or having been sold out, of some, or all products.
The company expects a number of new POs to materialise in the coming weeks to satisfy the strong consumer demand.
New territories for expansion
It is continuing to explore opportunities to expand its footprint in the Canadian market and has a number of territories earmarked for near term expansion.
Multiple launches of new offerings
Mernova is also progressing new product development initiatives and anticipates multiple launches in the coming months.
New offerings include Hash products, which will be sold under the Ritual Black brand, and pre-roll joints to be sold under the Ritual Sticks brand.
Creso anticipates that these offerings will add another revenue stream.