Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) subsidiary Mernova Medicinal Inc. continues to deliver milestones, having now received its first purchase order (PO) for new Ritual Green strains Mac 1 and Grape Cream Cake from the province of Saskatchewan.
Further to this, the company’s recent Lemon Haze strain harvest has yielded 47.5 kilograms – marking a 84% increase on the average volume of the 24 previous harvests. The increase follows recent upgrades to Mernova’s grow rooms, including new lighting and irrigation systems and investment in more nutritional products.
This increased yield is expected to lead to a lower cost per gram growing cost and provides Creso Pharma with increased inventory to progress province sales.
One further highlight is that Mernova has secured third place in the Cannabis NB Cup for its Black Mamba strain. This is a national competition that seeks cannabis strains from Canada’s best growers which are then judged by a panel of 600 people
Third place in the competition will provide additional marketing collateral, increased brand awareness for the Ritual Green range and broader market visibility.
“To have successfully increased plant yield by an average of 84% in our most recent Lemon Haze harvest is evidence that our recent investment in grow room upgrades is leading to a lower cost per gram benefit and has the potential to lead to higher margin sales,” CEO and managing director William Lay said.
“Increasing our strain offering is important for our growth as we strive to penetrate existing markets further, as well as entering new markets. Finally, the award received in the Cannabis NB Cup for our Black Mamba strain underpins the emphasis that we place on product quality as the core attribute of our product offering.”
Initial purchase order for new strains
Creso Pharma secured an additional PO from the province of Saskatchewan, one of Mernova’s newest provincial markets, which included orders for the new strains, Mac 1 and Grape Cream Cake in a 3.5g dried flower format.
The maiden order value for the new strains is ~C$13,680 of the total recent PO of ~C$68,000 from the province of Saskatchewan.
New strains continue to help develop Creso’s presence in existing and new markets.
The company is in discussion with existing province partners for further supply of these new strains as well as the launch of its new Ritual Green strain, Monkey Berries and planned vape product.
Increasing cannabis yields
Mernova has further increased cannabis yields at its state-of-the-art, 24,000 square-foot cannabis cultivation facility in Nova Scotia, Canada. The company has recently completed a harvest of its Lemon Haze strain, which is sold under the Ritual Green brand.
The latest cultivation, following grow room upgrades, has yielded 47.5 kilograms – an 84% increase on the 24 previous harvest average volumes of 25.8 kilograms.
The recent harvest and increased yield highlight the successful implementation of Creso Pharma’s strategy to bolster its total cannabis dried flower for sale, while reducing cost of growing on a per gram basis.
Top three in Cannabis Cup
Creso Pharma placed in the top three at the Cannabis NB Cup, providing additional recognition of its leading Ritual Green products.
The Cannabis NB Cup is a national competition, where cannabis producers are requested to submit their top products to the province of New Brunswick. The products are then distributed via 600 judging kits which include 3.5 grams of product from eight different producers, alongside a judging book.
Mernova submitted its Black Mamba strain in the indica category, winning third place.
The company believes these results provide further credibility to the quality that the Ritual Green brand is built on, as well as providing marketing collateral and brand awareness.