Creso Pharma’s Mernova receives esteemed award
In a development that will effectively make Creso Pharma Limited (ASX:CPH, FRA: 1X8) wholly-owned Canadian subsidiary Mernova Medicinal Inc. one of a select group of licensed cannabis producers the group has been awarded Craft Designation by the Ontario Cannabis Store (OCS).
The OCS is a crown agency solely owned by the Province of Ontario, and it reports directly to the Ministry of Finance, being the province’s only retailer and wholesaler of legal recreational cannabis.
The OCS has created a specific category for craft cannabis products available to consumers in Ontario.
To qualify, dried-flower and pre-roll products must be hand-trimmed, hang-dried and hand-packaged.
Mernova’s managing director Jack Yu was praiseworthy of his operational team in terms of their commitment to optimum quality production control in saying, “Our focus has always been on quality over all else and being awarded OCS Craft Designation is a direct result of this strategy.
"To be one of the only companies to be awarded OCS Craft Designation in Ontario is a major validation of the hard work and effort put in by our operations team, and it reflects the resulting artisanal quality of our products.
‘’We do things the right way, combining science and artisanal methods to produce some of the finest cannabis available.
‘’We don’t compromise on quality, and we’re becoming recognised within the industry because of it.’’
Award is expected to provide competitive advantages
This designation is an important achievement for Mernova and will provide Creso Pharma with much broader visibility in a competitive market.
It also highlights the superior quality of Mernova’s products as the company continues to achieve strong sales growth across Ontario.
On this note, Yu said, "We are confident that this new category will help further differentiate us from the competition, enhance our brand, and provide increased brand exposure and brand awareness, which should result in much broader visibility within the market.”
Currently, Mernova’s HPG13, Lemon Haze, and Clementine Punch strains are sold out across multiple dispensaries in the province.
Ontario represents a large addressable market for Creso Pharma, and as it is one of the largest recreational cannabis markets in Canada there is an expectation of Mernova achieving ongoing growth through the region.
Ritual Green products are currently available to over 600 stores in Ontario, while also being available to the public directly through the OCS online sales platform.
Management is continuing to monitor potential patterns and shifts in the distribution of cannabis in Ontario in order to adjust to the varying dynamics.