Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) welcomes the purchase orders Canadian subsidiary Mernova Medicinal Inc has received from leading Saskatchewan-based cannabis wholesale distributor Weed Pool Cannabis Co-operative.
The two purchase orders, valued at A$279,256, are for Mernova’s Ritual Green dried cannabis flower products and its pre-roll joint range, sold under the Ritual Sticks brand.
They are the largest orders Mernova has ever secured for Saskatchewan and the largest individual order received from any market outside Nova Scotia since the unit’s inception.
Strong footprint
“These purchase orders reiterate the strong footprint that Mernova is building across Canada, as well as the ongoing demand for the company’s premium cannabis offering,” Creso Pharma chief executive officer and managing director William Lay said.
“Mernova’s sales in Saskatchewan have continued to build from a base which was set earlier in the calendar year and we are confident that these larger order volumes will provide opportunities to optimise costs as the group pushes towards profitability,” he added.
Mernova will ship the first of the orders in the coming weeks and the second before the end of the year, and will recognise the total sale amount as revenue in the current financial year.
Consistent demand
Weed Pool is a co-operative of independently-owned Saskatchewan cannabis retailers representing over half of licensed cannabis sales in the province.
The cannabis wholesaler is licensed by the Saskatchewan Liquor and Gaming Authority (SLGA) to collectively source for cannabis products for its members and other retailers in the province.
The group is an existing customer and has consistently grown its order volumes since Mernova entered the province in February 2022.
GMP-certified
Creso Pharma develops cannabis and hemp-derived therapeutic, nutraceutical and lifestyle products for human and animal health.
The company uses Good Manufacturing Practice (GMP) development and manufacturing standards for its products, with initial product registrations in Switzerland.
It has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.