Creso Pharma’s Mernova formally recognised as a supplier in Ontario
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
In a highly promising commercial development, Creso Pharma Limited’s (ASX:CPH) wholly-owned Canadian subsidiary, Mernova Medicinal Inc. has secured an agreement with the Ontario Cannabis Retail Corporation (OCRC), operating as the Ontario Cannabis Store (OCS), formally recognising Mernova as a supplier.
This is a major achievement for the company as it highlights Mernova’s rapid progress in Ontario, Canada’s largest recreational cannabis market.
Ontario Cannabis Store is a crown agency, solely owned by the Province of Ontario.
It reports directly to the Ministry of Finance and is Ontario’s only online retailer and wholesaler of legal recreational cannabis.
The group provides legal, clearly labelled cannabis to a large customer base through Health Canada authorised suppliers.
Under the agreement, Mernova will supply OCS with a range of its high quality, indoor grown, hand trimmed, hang dried, cured, artisanal cannabis strains HPG13, Lemon Haze and Mimosa, which will be sold through established online channels under Mernova’s Ritual Green Brand.
The receipt of the agreement follows an initial notice to purchase from the group received last week, and management expects purchase orders to materialise imminently.
While volume commitments are yet to be finalised, Creso Pharma anticipates strong sales growth through Ontario.
Ontario accounts for more than 30% of sales in Canada
The province is Canada’s largest recreational market, and in September sales of regulated cannabis in Ontario totalled C$77.9 million, more than 30% of the total monthly sales volumes generated across Canada (September 2020 monthly sales in Canada were C$253.6 million).
Mernova is working closely with the OCRC and OCS to progress the sale of its Ritual Greens products throughout Ontario, and managing director, Jack Yu said: “This is a huge step forward towards selling our high-quality products in Canada’s largest market.
‘’To be able to compete in a market with over C$385 million in sales between April 2019 and March 2020, which continues to grow, is a huge opportunity for us and we look forward to firmly establishing ourselves as one of the premier cannabis producers in the country.
“We look forward to greatly expanding the reach and distribution of our Ritual Green products so that more consumers can experience the premium products that Creso Pharma and Mernova have to offer.’’
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.