Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s wholly-owned, Canadian subsidiary Mernova has secured new purchase orders worth A$808,572 (C$742,572) for its top-quality indoor-grown, hand-trimmed, hang-dried, cured, artisanal cannabis products from bulk supply and provincial partners.
Multiple repeat purchase orders totalling more than A$580,000 (C$535,533) were received from Mernova’s provincial Canadian partners, including Cannabis NB, Nova Scotia Liquor Corporation, Yukon Liquor Corporation and Ontario Cannabis Retail Corporation.
The strong interest follows a busy year for Mernova, in which it has launched several new products and been awarded Craft Designation by the Ontario Cannabis Store.
Generating traction
Mernova’s managing director Jack Yu said the increasing sales revenue was in line with the company’s plan to become the leader in artisanal cannabis products.
“Recent purchase orders from both provincial partners and bulk suppliers highlight the traction we are generating in the Canadian market,” he said.
“We continue to receive very good customer feedback on our range of dried flower and pre-roll joint products, which is leading to consumer uptake.”
“Work to introduce new strains, innovative products and grow our footprint in Canada is ongoing and I am confident that Mernova will continue to generate sales growth.”
Product demand
Mernova continues to see strong interest in its dried flower and pre-roll joint range, Ritual Sticks, from these provincial partners, and it is actively exploring the potential to expand its range with them.
In July Mernova introduced 14 new strains under its established Ritual Greens brands, and it anticipates sales of these to new and existing partners in the coming months.
The Ritual Sticks range provides products for people that do not know how to roll their own joints, or simply prefer the convenience of having their joints pre-rolled for them.
The pre-roll cannabis segment is a large addressable market for Mernova and also serves as an entry-level product that allows consumers to try Mernova’s high-quality strains at an affordable and attractive price point.
- Daniel Paproth