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Creso Pharma’s (ASX:CPH) Mernova gets initial order for new strains amid major company updates

ASX News, Health Care
ASX:CPH
14 June 2022 17:13 (AEST)

Source: Creso Pharma

Creso Pharma’s (CPH) wholly-owned subsidiary Mernova Medicinal has secured an additional purchase order from the Saskatchewan province.

The Saskatchewan province is one of the subsidiary’s newest provincial markets which included orders for the strains, Mac 1 and Grape Cream Cake in a dried flower format.

The maiden order value for the new strains is approximately C$13,680 (A$15,264) of the total recent purchase order of C$68,000 from the Saskatchewan province.

Creso Pharma believes regularly introducing new strains is an important part of its strategy to expand its presence in existing and new markets. The company is currently in discussions with existing province partners for further supply of the new strains.

Further, Creso Pharma has also significantly increased its cannabis yields at its state-of-the-art 24,000 square feet cultivation facility in Nova Scotia, Canada.

Recently, Creso had completed a harvest of its Lemon Haze strain which is sold under the Ritual Green brand.

The latest cultivation follows upgrades to the company’s grow rooms and has yielded 47.5 kilograms, which highlights an 84 per cent increase on the 24 previous harvest average volumes of 25.8kg.

CEO and Managing Director William Lay said the increase is evidence of the company’s recent investment in grow room upgrades leading to a lower cost per gram benefit with the potential to lead to higher margin sales.

“Increasing our strain offering is important for our growth as we strive to penetrate existing markets further, as well as entering new markets,” he emphasised.

Lastly, Creso has secured a top three placing at the Cannabis NB Cup, which it said provides additional recognition of the company’s leading Ritual Green products.

“The award received… underpins the emphasis that we place on product quality as the core attribute of our product offering,” Mr Lay said.

Mernova submitted its Black Mamba strain in the indica category, which achieved a third place finish.

Shares in Creso Pharma ended the day 6.25 per cent in the red at 4.5 cents.

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