Creso Pharma’s Mernova formally recognised as a supplier in Ontario
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.’’
Where to invest $1,000 right now
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
Like this article? You may like...
S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.
