Join our daily newsletter At The Bell to receive exclusive market insights
- Creso Pharma’s (CPH) subsidiary, Mernova Medicinal, has received a CA$775,000 purchase order for its premium, hand-trimmed medicinal cannabis flower
- The order came from Univo Pharmaceuticals, an Israeli-based medicinal cannabis company
- This order is a significant milestone for Creso Pharma and Mernova, as Israel is considered a pioneer in the medicinal cannabis market
- Univo plans to distribute the cannabis flower to a large number of medicinal cannabis pharmacies across Israel
- Mernova expects its product will be delivered in about one month
- Creso Pharma is trading flat at 5.9 cents each
Creso Pharma’s (CPH) subsidiary, Mernova Medicinal, has received a CA$775,000 purchase order for its medicinal cannabis flower from Univo Pharmaceuticals.
Under this order, Mernova will ship two of its premium strains of cured, hand-trimmed, dried medicinal cannabis flower, to Univo in Israel.
“We are excited to work with Univo to enter the Israeli market. They are world-class partners with significant connections to pharmacies and patients in Israel,” Mernova Vice President Isaac Allen said.
The purchase order
Half of the order value will be paid in cash within 10 business days from signing of the order. The remaining 50 per cent will also be paid in cash but following delivery in Israel. This delivery is expected in the next month or so.
While Univo can’t terminate the order, it can reject the product and receive a partial refund if any material defects are noticed within 21 business days of delivery.
Univo is a medicinal cannabis company which has licenses for cultivation, production, research and developement, and distribution. Univo plans to distribute the cannabis flower through Hiliz. Hiliz is an Israeli firm with connections to over 20 medicinal cannabis pharmacies in Israel.
Israel – a pioneer in medicinal cannabis
Israel is considered a pioneer of research into medicinal cannabis and is an international hub for medicinal cannabis innovation.
“We are extremely pleased to have received our first Israeli purchase order for the quality strains of dried flower being produced at Mernova,” Creso Pharma CEO and Co-founder Dr Miri Halperin Wernli said.
“The order is the company’s first from Israel and we hope to expand on this initial order in the coming months,” she added.
According to a recent white paper from the Israeli government, medicinal cannabis is currently supplied to more than 50,000 patients in Israel. Israel is also at the forefront of the rapidly-growing medicinal cannabis market that is set to be worth approximately US$62.7 billion by 2024.
Mernova ramps up
Mernova has a licensed cannabis facility in Nova Scotia, Canada. It is currently ramping up production and trying to secure its EU GMP certification. This will allow it to begin selling its high-quality cannabis flower and extracts, into established markets, like Israel, and growing markets in Europe.
Mernova is also in a robust financial position. In early March it received a C$410,000 order. In combination with this latest order from Univo, Mernova has already exceeded its full-year 2019 revenues.
“Despite the challenges the world faces due to Covid-19, Creso Pharma remains on a strong trajectory for 2020,” Dr Miri concluded.
Creso Pharma is trading flat at 5.9 cents each at 3:52 pm AEDT.
