Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s Canadian subsidiary Mernova Medicinal Inc has successfully actioned several growth initiatives, including introducing new strains to a range of provincial partners and launching new stock keeping units (SKU).
The company received a notice of acceptance for three new SKUs from the Ontario Cannabis Store (OCS), a Crown corporation with a legal monopoly on recreational cannabis distribution in Ontario, Canada.
Products will be delivered to the OCS distribution centre in the coming months, with purchase orders anticipated to materialise in the second half of this year and beyond.
The Nova Scotia Liquor Corporation (NSLC) followed suit, approving two additional SKUs for Nova Scotia, and selecting Mernova for the NSLC’s Hero Spot Expert Growing and Curing promotion.
“Very strong progress across Canada”
“Mernova has continued to make very strong progress across Canada, highlighted through the amount of inbound inquiries from existing provincial partners that are seeking to expand their stock of our artisanal cannabis selections,” Creso Pharma CEO and managing director William Lay said.
“The company continues to generate strong interest in Ontario, which is a major market and New Brunswick, highlighted by recent efforts.
“As well, the introduction of new products in our home province of Nova Scotia and selection in marketing and promotional activities is expected to underpin potential sales growth.
“Management is in active discussions with other provincial partners and continuing to pursue additional opportunities to drive sales and reduce capital expenditure.”
Mernova recently secured a A$94,980 (C$84,708) purchase order from Cannabis NB, of which A$24,034 (C$21,300) has been allocated to a new Ritual Green strain Grape Cream Cake.
The follow-up purchase order from Cannabis NB also includes an order for the company’s Ritual Gold vaporiser brand, highlighting Mernova’s growing footprint in the cannabis extract market of the region.