Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has reported robust growth in purchase orders for subsidiary Mernova Medicinal Inc this month, alongside extended licences with Canadian health and revenue authorities.
Mernova's sales in May, which included dried flowers, pre-roll joints and electronic vaporiser products, amounted to A$662,131, bringing total unaudited second-quarter sales to A$1.2 million.
This follows the A$553,957 purchase orders received in the previous month as well as Mernova's maiden cashflow positive position in the first quarter.
Outlook positive
Creso believes the strong orders from provincial partners and wholesalers highlight Mernova’s leading position in Canada, underpinned by a growing product suite.
“Mernova continues to deliver strong sales growth via province partners and we have a positive outlook through to the end of Q2 and beyond,” Creso chief executive officer and managing director William Lay said.
“We continue to witness pleasing demand for the group’s product range which is now sold through eight Canadian provinces.”
Licences extended
“As well, the group’s commitment to acting within regulatory guidelines has been highlighted with the extension of two licenses with Health Canada and Canada Revenue Agency respectively," Lay said.
“The company continues to assess the potential to become a GMP (Good Manufacturing Practice) licensed facility and will update shareholders on developments as they materialise.”
Canada’s health and revenue authorities have extended Mernova's cannabis licence for an additional five years, through February 2028.