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Creso Pharma’s Mernova secures first sale for Ritual Sticks
4 minute read
Creso Pharma Limited (ASX:CPH, FRA: 1X8) has announced three new purchase orders for its wholly-owned Canadian subsidiary, Mernova Medicinal Inc, with a total value of C$177,122.40 (A$183,019.55).
Included in these purchase orders is the first purchase order for Mernova’s Pre-roll Joint range, sold under the Ritual Sticks brand.
Valued at C$70,560.00 (A$72,890.241), this sale marks the official launch of the product line in Canada, with the new Pre-roll Joints to be available to consumers in the coming weeks.
Ritual Sticks products are expected to add additional revenue stream for Mernova, with additional orders expected in the near term.
The Ritual Sticks offering is comprised of new Pre-roll Joints which utilise the company’s top-quality indoor grown, hand trimmed, hang dried, cured, artisanal, craft cannabis.
To produce the line of Pre- roll Joints, Mernova exclusively utilises only the same high-quality cannabis that is sold under the Ritual Green brand. The launch follows considerable product development initiatives, as well as a lengthy registration process with Health Canada.
Ritual Sticks Unlocks Significant Addressable Market
The pre-roll Joint market provides a number of opportunities for Mernova and potential new customer base.
The Ritual Sticks range will provide products for people that do not know how to roll their own joints, or simply want to avoid the inconvenience of rolling joints themselves, and will benefit from the convenient nature of the Company’s new offering.
Ritual Sticks will also be sold at a lower price point than Mernova’s Ritual Green line and serve as an entry level product that makes it more affordable for people to try Mernova’s high-quality strains. The expectation is that once people try the products, a significant number will become repeat customers.
Purchase Orders highlight Mernova’s growing brand recognition
The additional PO’s highlight Mernova’s growing brand recognition and shift to recurring revenue model.
The second PO is from NSLC and is valued at C$61,022.40 (A$63,037.66) for its Black Mamba and Mimosa strains, sold under the Ritual Green brand. This PO demonstrates the strong uptake of Ritual Green in Nova Scotia, which is a large addressable market for the Company.
The third PO, valued at C$45,540 (A$47,043.96) was from Cannabis NB for the Company’s Ritual Green strains Lemon Haze and Mimosa. Cannabis NB is the government-owned retail cannabis monopoly in the Atlantic Canadian Province of New Brunswick. It has an established footprint of 20 retail outlets and an online channel which generate significant cannabis sales.
Mernova continues to witness strong growth through sales across all provinces.
The Company anticipates that the recent launch of Ritual Sticks will add another revenue stream to Mernova’s growing sales profile. Additional POs for new and existing product ranges are expected in the near term.
Mernova’s Managing Director, Jack Yu commented on the purchase orders: “Receiving our first PO for our Ritual Sticks brand of Pre- roll Joints is a major achievement for Mernova, and is the result of considerable R&D to select the right equipment and develop our processes.
"We wanted to produce the best Pre-roll joints possible, and are very excited to get our new products in the hands of customers in the coming weeks, so that they can provide their feedback.
“One thing that sets us apart is that we use only the same high-quality cannabis as sold under our Ritual Green brand of dried flower. We expect these products to open a much broader market for Mernova, as they are priced as entry-level products, which should help introduce our products to a much larger customer base, and they offer a level of convenience that many will appreciate.
“Mernova continues to witness very strong sales growth and the additional purchase orders received recently are validation of this. Our brand recognition has increased considerably over the last few months, particularly in Nova Scotia, and Mernova has generated a reputation as one of the best craft cannabis growers in Canada. Most importantly, our ongoing sales growth has put the business on a fast track towards a stable, and recurring revenue-generating model.
“We expect demand for our products to continue, particularly with the introduction of our Pre-roll Joint range, and we look forward to updating shareholders on new purchase orders in the near term.”