New orders further support Creso Pharma’s 700% share price gain
Creso Pharma Limited (ASX:CPH; FRA: 1X8) continues to build on a fortnight of strong news flow with its wholly-owned Canadian subsidiary, Mernova Medicinal Inc. receiving three purchase orders with a combined value of C$275,023 (A$288,159).
Further to this was the receipt of a Notice to Purchase from the Province of Ontario, marking the company’s entry into Canada’s largest recreational cannabis market.
The first purchase order valued at C$232,826 (A$243,841) is from Truro Cannabis Company, a licensed producer of medical and recreational cannabis products.
Such has been the quality of the news flow that CPH's shares closed at a 12 month high of 23.5 cents yesterday, up 700% from 3.1 cents a fortnight ago.
Positive company-specific and industry news has underpinned the sharp share price gain, including significant developments on the regulatory front that are likely to benefit Creso Pharma across key markets such as the US and the European Union.
It is worth noting that in the next week it will be Australia’s turn to release important regulatory news regarding its potential rerating of medicinal CBD as an over-the-counter (OTC) product.
Read: Changes to OTC cannabis sales just around the corner
Creso Pharma’s premium products gaining recognition
The Truro order is a bulk order for three of Mernova’s high quality, indoor grown, hand trimmed, hang dried, cured, artisanal cannabis strains, in dried flower form, specifically HPG13, Lemon Haze and Mimosa.
The group has an established presence across Canada, and will sell Mernova’s products through their well-established distribution channels.
Creso Pharma also received a maiden purchase order from the Yukon Liquor Corporation (‘Yukon’), opening a new Canadian market with the company anticipating further orders in the future.
The purchase order for the HPG13, Lemon Haze and Mimosa strains, in dried flower form is valued at C$24,333 (A$25,436).
These products will be sold under the Ritual Green brand in 3.5 gram and 7 gram units, through leading retailer Triple J’s Canna Space.
These developments serve as confirmation of the significant demand for Mernova’s high-quality cannabis products in the rapidly growing Canadian retail recreational market.
Commenting on these recent developments and expressing his confidence regarding the likelihood of further strong order flow, Mernova managing director Jack Yu said, “Mernova continues to make very strong progress in the Canadian recreational market.
‘’The three most recently secured purchase orders will contribute to Creso Pharma’s growing revenue profile and we expect additional orders to materialise in the very near term.
“Mernova has now become part of a very select group of licensed producers with cannabis products for sale in the Yukon.
‘’This is a major achievement for us, and we expect growth to continue across Canada and, with our pending entry into Ontario, Canada’s largest recreational market, we expect rapid growth to continue.”
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