Creso Pharma (ASX: CPH) has closed out a busy week with news its wholly-owned Canada-based subsidiary Mernova had received three purchase orders worth a combined $183,019.
The purchases include the first ever order for Mernova’s Ritual Sticks pre-rolled joints, which amounts to $72,890.
This order was from the Nova Scotia Liquor Corporation and marks the official launch of the Ritual Sticks product line in Canada, which follows product development initiatives and a lengthy registration process with Health Canada.
Mernova managing director Jack Yu said receiving the first purchase order for Ritual Sticks represented a “major achievement” for the company.
“We wanted to produce the best pre-roll joints possible, and are very excited to get our new products in the hands of customers in the coming weeks, so that they can provide their feedback.”
“One thing that sets us apart is that we use only the same high-quality cannabis as sold under our Ritual Green brand of dried flower.”
Mr Yu added he expected the pre-rolled joints would “open a much broader market” for the company.
He said this was because the joints had an entry-level price, which could help introduce Mernova’s products to a “much larger customer base”, adding the company’s products offer a “level of convenience many will appreciate”.
Strong sales growth
Mr Yu said today’s purchase orders add to Mernova’s “very strong sales growth”.
“Our brand recognition has increased considerably over the last few months – particularly in Nova Scotia.”
He added Mernova has also built a reputation as one of Canada’s best craft cannabis growers.
“Most importantly, our ongoing sales growth has put the business on a fast track towards a stable and recurring revenue-generating model.”
Mr Yu said he anticipated demand for the company’s products would continue growing – driven by the launch of the Ritual Sticks range.
Nova Scotia Liquor Corporation was also responsible for Mernova’s second purchase order worth $63,037 – seeking the Black Mamba and Mimosa cannabis strains sold under Mernova’s Ritual Green brand.
The third order in today’s announcement came from the New Brunswick Government-owned retail cannabis monopoly Cannabis NB and was valued at $47,043. Cannabis NB has purchased Ritual Green strains Lemon Haze and Mimosa.