PriceSensitive

Creso Pharma (ASX:CPH) locks in another Mernova purchase

Health Care
ASX:CPH
27 October 2020 14:50 (AEST)

Source: CresoPharma

Cannabis specialist Creso Pharma (CPH) has locked its third purchase order from the Nova Scotia Liquor Corporation (NSLC) in four weeks.

The order was received by Creso’s Canadian subsidiary, Mernova Medicinal, for its new Mimosa product, which part of its Ritual Green brand. The Mimosa strain is made up of between 15 per cent and 20 per cent tetrahydrocannabinol (THC) and less than 1 per cent cannabidiol (CBD).

The NSLC has ordered 20 cases of Mimosa, which is listed at C$35 (roughly A$37) per 3.5 grams. According to Creso, this is a competitive price point that unlocks a broad market opportunity for the company.

The Mimosa brand is designed to target consumers who want premium quality cannabis products at a reasonable price.

Over the past four weeks, NSLC has also placed purchase orders for Creso’s premium strains, HPG13 and Lemon Haze. Both of these products comprise between 20 per cent and 25 per cent THC and less than 1 per cent CBD.

Mernova’s Ritual Green products are sold through the NSLC’s stores and e-commerce platform. Moreover, Creso said it has made roughly C$320,000 (around A$340,000) in revenue from NSLC in the last month alone.

Mernova Managing Director Jack Yu said today’s purchase order from NSLC further validates the success of the Ritual Green product launch.

“Our products continue to garner very positive feedback from customers and we are confident that the Mimosa strain will unlock a large portion of the market that we can capitalise on in the near term,” Jack said.

“We look forward to updating shareholders on progress in Nova Scotia, additional strain launched under the Ritual Green product range, and further orders to be finalised in the near-term,” he said.

Shares in Creso Pharma are trading sideways today, currently grey at 2.8 cents each at 2:07 pm AEDT.

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