Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s Canadian subsidiary Mernova Medicinal Inc. has secured a maiden purchase order valued at A$12,283 for its Ritual Gold vaporiser products from the Weed Pool Cannabis Cooperative in Saskatchewan.
This marks the launch of a new range of handheld vaporiser products that provides an entry point to the rapidly growing cannabis vaporiser market.
Notably, the Ritual Gold range utilises dried flowers that are not fit for retail sale and provides the company with access to a market expected to grow to US$15.77 billion by 2028.
Mernova continues to progress potential distribution partnerships and increased participation in Ontario Cannabis Store’s (OCS) flow-through program to drive product uptake.
“Streamline distribution”
Creso Pharma CEO and managing director William Lay said: “Mernova has continued to advance a number of initiatives which have the potential to significantly increase its reach, streamline distribution and underpin future sales growth.
“We are excited to have secured our maiden PO for the Ritual Gold range and look forward to gaining valuable feedback from customers in Saskatchewan.
“Ritual Gold is an important launch for Mernova that provides access to a large and growing market and reduces the amount of dried flower wastage coming from our facility.
“We are witnessing a strong interest in the product and are looking forward to updating the market on Mernova’s progress in due course.”
Savings on wastage
The Ritual Gold range utilises Mernova’s top-quality, indoor-grown, hand-trimmed, hang dried, cured, artisanal, high-THC, craft cannabis flower.
The new one gram products use cannabis trim and other biomass, which is not optimal for retail sale.
This can potentially increase Mernova’s revenue from unused inventory while saving on wastage. Creso Pharma will continue to promote its Ritual Gold offering to provincial partners.
OCS flow-through program
Mernova is also participating in the OCS’ flow-through process, which is expected to provide the company with an increased presence and may result in sales growth throughout the province of Ontario.
Ontario is the largest market in Canada for recreational cannabis use and has nearly 1,500 licensed retailers.
Participation in the flow-through model will begin with the company’s Black Mamba and Mac 1 strains.
The retail flow-through program has the potential to increase the volume of purchase orders from individual retail outlets, instead of the governing body.