Creso Pharma Secures New US$625,000 Purchase Order for Medicinal Cannabis
Creso Pharma Limited’s (ASX:CPH;FRA:1X8) wholly-owned subsidiary Mernova Medicinal Ltd has received a US$625,000 purchase order for its premium, cured and hand-trimmed dried medicinal cannabis flower from Univo Pharmaceuticals Ltd (TLV: UNVO).
This is the second wholesale purchase order received from Univo, the first being in April, and this provides Creso with the opportunity to leverage Univo’s extensive distribution networks into the rapidly growing Israeli market.
Israel is a pioneer in the global medicinal cannabis market, which has been estimated to be worth US$62.7 billion by 2024.
Listed on the Tel Aviv Stock Exchange, Univo is a medicinal cannabis company which has licenses for the entire supply chain including cultivation, production, research and development and distribution.
As a backdrop, Creso Pharma uses GMP (Good Manufacturing Practice) development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland.
The company has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.
Delivery within one month
Under the terms of the Purchase Order announced today, Mernova will ship four of its premium strains of cured, hand-trimmed, dried medicinal cannabis flower, to Univo in Israel.
An initial 25% of the order value will be paid in cash upon receipt of the export license from Health Canada, a further 25% will paid upon receipt of goods at TLV Ben Gurion Airport, and the remaining 50% of the order value will be paid within 30 business days of the goods being delivered at Univo’s factory in Israel.
Delivery is expected to be completed within one month, subject to the grant of an export permit by Health Canada.
The Purchase Order cannot be terminated by Univo, but Univo has the right to reject the product and receive a partial refund if any material defects are identified within 21 business days of delivery.
Entry into Canada imminent
Commenting on the significance of this order in terms of expanding Creso Pharma’s market presence in this high-growth area, chief executive and co-founder Dr. Miri Halperin Wernli said, “Following our initial entry into the Israeli market in April this year, we are delighted to have received another significant purchase order from Univo which further strengthens our penetration into this growing market.
“Univo has an impressive distribution network, including significant connections to pharmacies and patients in Israel, so this truly is a tremendous growth opportunity for Creso.
“Israel is widely recognised as one of the more progressive and active cannabis markets globally and Univo’s acceptance and continued demand for our cannabis is a major testament to the quality of our product and the expertise of the Mernova team.
“As wholesale demand for our products continues to solidify, we are also preparing for Mernova’s launch into the Canadian retail market which is another exciting near-term opportunity.
‘’With several value catalysts on the horizon I look forward to providing further updates from across the business in the near-term.”