Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) wholly owned Canadian subsidiary, Mernova Medicinal Inc. has continued to deliver strong results in relation to the uptake of its Ritual brands.
The company continues to expand its relationship with provincial partners, underpinning potential sales growth during the third quarter of 2022.
Mernova delivered products and received purchase orders (PO) with imminent delivery dates valued at a combined C$416,340 (A$465,945) in July 2022 – a significant increase on the previous corresponding period (June revenue: A$403,023).
The numbers illustrate a strong start to the quarter for Mernova after it reported unaudited Q2 quarterly revenue of A$1,091,434, and should take the total revenue generated by the Mernova division year-to-date to over A$3 million (unaudited).
During the quarter, Mernova secured new POs from provincial partners in Ontario, Nova Scotia, the Yukon, Saskatchewan and New Brunswick.
The orders include Mernova’s Ritual Green cannabis strains, as well as follow-on POs for Ritual Gold vaporiser products.
Growing demand
Demand continues to grow from the Ontario Cannabis Store’s (OCS) flow through program, the recently introduced framework that allows retail outlets in Ontario to submit demand allocations to the province, which then amalgamates these allocations and submits a PO on behalf of all retailers.
Additional strains have now been submitted to form part of the program and CPH will provide further updates as they come.
“Mernova has laid a solid foundation for Q3 and H2 2022 sales growth. As we approach the summer months in the northern hemisphere, we anticipate that demand may increase, particularly in Ontario which remains Canada’s largest market for recreational cannabis,” CPH CEO and managing director William Lay said.
“The company continues to assess opportunities to increase market share across Canada, including the introduction of new strains, products and potential distribution agreements. We look forward to providing additional updates across the remainder of the quarter in due course.”