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.’’