Creso Pharma Limited’s (ASX:CPH) wholly-owned Canadian subsidiary, Mernova Medicinal Inc. has secured new purchase orders valued at A$150,770 from the Ontario Cannabis Store (OCS) and Yukon Liquor Corporation.
The orders include a repeat order from the OCS and the second order Mernova has received for its pre-roll joint range in a very short period. The new orders also include a maiden PO for Mernova’s new one ounce bag offering.
The order from OCS is valued at A$105,937 and is for Mernova’s leading Ritual Greenproduct range. The OCS is the crown agency solely owned by the Province of Ontario. It reports directly to the Ministry of Finance and is the province’s only retailer and wholesaler of legal recreational cannabis.
The OCS provides legal cannabis products to a large number of customers through Health Canada approved suppliers. Ontario is one of Canada’s largest recreational cannabis markets and represents a major opportunity for the company.
Mernova also secured a PO from the Yukon, valued at A$44,833 for the company’s pre- roll joint range and new one ounce bag offering. This order marks the first time that Mernova’s Mimosa and HPG13 strains are being sold in pre-roll joint form.
Mernova’s Managing Director, Jack Yu, said the company sells its pre-roll joint range under the Ritual Sticksbrand. The pre-roll products utilise the company’s top-quality indoor grown, hand trimmed, hang dried, cured, artisanal, craft cannabis sold under the Ritual Greensegment.
To have secured these new purchase orders is a major achievement for Mernova,” Mr Yu said.
“Particularly, the repeat order from OCS is very pleasing and our second order for Ritual Sticks in another new province highlights the significant potential the product has amongst consumers. The pre-roll market segment is booming and offers Mernova a huge opportunity that we plan to capitalise on to the fullest.
“We are very confident that we can leverage our growing reputation as a high-quality, artisanal, craft cannabis producer, to make headway into this market, and establish ourselves as producers of some of the best pre-roll joints in the country with our Ritual Sticks, as we’re currently doing with our Ritual Green brand, in the dried flower market.”
“We are also very happy to have launched our new one-ounce bag offering, which will allow consumers to purchase more of their favourite cannabis at competitive prices, by offering a volume discount. The larger ounce offering will also allow the Company to streamline its inventory practices, ensuring we retain the highest standard and quality of cannabis in our range of high-quality offerings.”
“As the time between purchase orders continues to decrease, Mernova continues on a track towards a stable and recurring revenue model. We anticipate that this trend will continue, and we remain very optimistic about our growth prospects over the coming months.”