Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s wholly-owned, Canadian subsidiary Mernova Medicinal Inc. has generated A$666,042 (C$612,734) in revenue during the current quarter, adding to the total of A$3,159,141 (C$2,979,797) to the year to date in divisional revenue.
Mernova is now well placed to continue quarter-on-quarter revenue growth.
Creso Pharma group revenue for the current quarter now sits at A$1,482,477 so far – an increase of around 28% on the previous quarter.
Strong sales highlight revenue growth
“Mernova has achieved strong sales during October and November, and we anticipate that this will continue during the remainder of the quarter,” Mernova managing director Jack Yu said.
“We have a number of potential purchase orders from provincial partners in the pipeline and expect these to materialise and underpin further revenue increases.”
Revenue growth is underpinned by orders for Mernova’s top-quality, indoor-grown, hand-trimmed, hang dried, cured, artisanal craft cannabis products, sold through its Ritual Green and Ritual Sticks product lines.
The company has also secured several purchase orders from key provincial partners in Nova Scotia, the Yukon, New Brunswick and Ontario, none of which are material to the company on an individual basis.
Additional revenue has come through the sale of products to a wholesale group during the current quarter.
Advanced growing and harvesting processes
The growth in revenue follows the implementation of advanced growing and harvesting processes, which has led to an increase in product THC content.
“Operationally, we remain focused on refining our growing techniques to ensure that our cannabis products continue to improve and THC content increases,” Yu said.
“This is incredibly important and will provide Mernova with a competitive advantage. We look forward to providing additional updates on purchase orders as they materialise.”
The higher THC content product has led to higher customer demand across Mernova’s key operating markets.
Mernova is now confident that purchase orders will continue to materialise before the end of the quarter, allowing it to achieve growth on previous quarter revenue of A$797,963 (Q3 2021).