Creso Pharma Limited (ASX:CPH, OTC:COPHF, FRA:1X8) (‘Creso Pharma’ or ‘the Company’) is pleased to provide the following update on revenue growth through wholly-owned, Canadian subsidiary Mernova Medicinal Inc. (“Mernova”). During the current quarter, Mernova has generated C$612,734 in revenue, leaving the division well placed to continue quarter-on-quarter growth. Q4 CY2021 sales also add to the business division’s year to date revenue, which is C$2,979,797.
The recent revenue from Mernova, alongside growth from the Company’s Swiss operations (refer ASX announcement: 11 November 2021), highlights that Creso Pharma has generated A$1,482,477 during Q4 2021. This represents a ~28% increase on the previous quarter (A$1,160,723). Mernova’s revenue has been underpinned by orders for the Company’s top-quality, indoor grown, hand trimmed, hang dried, cured, artisanal craft cannabis products, sold through both its Ritual Green and Ritual Sticks product lines. The Company has secured a number of purchase orders from key provincial partners in Nova Scotia, the Yukon, New Brunswick and Ontario. None of the purchase orders individually are material to the Company. Additional revenue has also been generated through the sale of products to a wholesale
group during the current quarter. The growth in revenue follows the implementation of advanced growing and harvesting processes, which has led to an increase in product THC content. The higher THC content product has underpinned pleasing customer demand across key operating markets for Mernova. Management is confident that purchase orders will continue to materialise before the end of the quarter, allowing Mernova to achieve growth on previous quarter.
The Company has built a robust sales pipeline and coupled with ongoing product development initiatives, Mernova remains well placed to continue its upward trajectory. More broadly, Creso Pharma continues to achieve pleasing progress across its other key operating divisions in North America and Switzerland. Each of the Company’s operating businesses remains focused on progressing a number of initiatives, including international expansion, sales increases, and product development, which is expected to unlock a number of growth opportunities for Creso Pharma.
Mernova Managing Director Mr Jack Yu said: “Mernova has achieved strong sales during October and
November, and we anticipate that this will continue during the remainder of the quarter. We have a
number of potential purchase orders from provincial partners in the pipeline and expect these to
materialise and underpin further revenue increases.”
“Operationally, we remain focused on refining our growing techniques to ensure that our cannabis
products continue to improve and THC content increases. This is incredibly important and will provide
Mernova with a competitive advantage. We look forward to providing additional updates on purchase
orders as they materialise.”