Shares in ASX-listed cannabis company Creso Pharma Ltd (ASX: CPH) are on a wobbly ride this morning. After lifting to a high of 22.5 cents in early trade, the Creso Pharma share price rollercoastered back to its opening price of 21 cents. Its shares are now trading up 2.4%, at the time of writing.
This follows the company's announcement of 4 new purchase orders in excess of a quarter million dollars.
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What are the details?
Creso Pharma advised its wholly-owned Canadian subsidiary, Mernova Medicinal Inc, has secured 4 new purchase orders for its quality indoor grown cannabis. Worth a total of CA$242,842 (AU$248,682), the company will sell the cannabis under its Ritual Green brand.
The Canadian government-owned retail cannabis monopoly in New Brunswick, Cannabis NB, made its first order from Creso's Mernova. This is the first sale Mernova has made in the province.
The company has also received two more purchase orders from the Nova Scotia Liquor Corporation for a total value of CA$104,200. Creso revealed this included Mernova's first ever order for its new highly potent Black Mamba strain, an Indica variety with more than 20% THC content.
The other purchase order, from the Yukon, is valued at CA$43,842.
Management commentary
Addressing the latest sales success, Mernova managing director Jack Yu said:
To receive our first PO [purchase order] from the province of New Brunswick, as well as additional POs from the NSLC and the Yukon, is a great way for Mernova to start the year, and shows that 2021 should be promising for us…
These latest POs show that our Ritual Green brand products continue to gain traction, and that we are developing a reputation for quality. Product sales on a province-by-province basis are progressing well, and we look forward to the imminent launch of our Ritual Sticks, and Ritual Black brands. We are just getting started.
The company reported that it is continuing to explore its expansion opportunities in the Canadian market, with a number of territories on its radar.
Creso Pharma share price snapshot
Creso Pharma has been a star performer over the past months, though with a lot of volatility.
The Creso share price is up 18% so far in 2021, compared to the 2.1% gain on the All Ordinaries Index (ASX: XAO). Creso shares really surged in late November last year with the share price up 607% since 24 November.
