Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) says its wholly-owned Canadian subsidiary Mernova Medicinal Inc. will list seven new products in Nova Scotia to be sold through the Nova Scotia Liquor Corporation (NSLC).
The NSLC has recently undertaken a rigorous evaluation of more than 1,200 submissions, which led to a total of 75 new listings in the province, of which Mernova received seven.
This doubles Mernova’s total listings in the province from seven stock-keeping units (SKU) to 14 SKUs and demonstrates the company’s ability to further penetrate the company’s largest market from a revenue perspective (based on Q1 to Q3 2022).
Mernova aims to have the products in the distribution centre by February 17 and on market from March 13, with sales to be recorded for the end of this quarter.
The SKUs will be on sale across the Ritual Green, Ritual Stick and Ritual Gold product suite.
Nova Scotia "a barometer"
“Nova Scotia has always served as a barometer for the company and to have an additional seven products accepted by the NSLC is a major achievement,” CPH CEO and managing director William Lay said.
“Pleasingly, Mernova’s submissions were selected from 1,200 applications, of which only a total of 75 were successful, which included products from major global cannabis companies and other leading industry players. This highlights the exceptional quality of our ranges, in-house capabilities and market penetration potential."
Significant THC content
Additional product testing of cannabinoid content across its four Ritual Green cannabis strains has shown Ritual Green strains have a high THC content, which provides Mernova with another competitive advantage.
The Ritual Green strains are the strongest batches Mernova has released since its inception.
Recent testing has shown Mernova’s most recent dried flower batch of French Cookies had total THC content of 30.97%, Mac 1 had total THC content of 33.5% and 32.81% across two new batches, Lemon Haze had total THC% content of 32.02%, and Black Mamba total THC percentage content of 30.3%, 31.18% and 34.66% across three new batches.
Each new batch considerably exceeds the industry average THC content levels for dried flower products, which is estimated to be approximately 15%.
The higher THC numbers should better position Mernova against local and other competitors in this industry.
Mernova is actively marketing the new high-content total THC batches to a range of new and existing province partners, a move it believes will attract further purchase orders.
“The company’s work to optimise its product suite directly underpins Mernova’s expansion through Nova Scotia and other provinces. Recent testing of dried cannabis flower has shown that the company has a superior THC content compared to industry average,” Lay said.
“We expect that these higher content strains will peak consumer interest, as customers continue to seek stronger, premium grade products. Initial discussions with province partners have been positive and we look forward to purchase orders materialising shortly.”