The Creso Pharma Ltd (ASX: CPH) share price is climbing higher on Tuesday following a positive update by the company.
At the time of writing, the medicinal cannabis company's shares are up 1.97% to 10.7 cents. It's worth noting that in early trade, its shares touched an intraday high of 12 cents before pulling back.
What did Creso Pharma announce?
In today's statement, Creso Pharma advised that its wholly-owned Canadian subsidiary, Mernova Medicinal Inc, has secured a number of purchase orders.
A mix of bulk supply orders and ongoing sales with local partners has led the company to lock in more than $800,000 in revenue. The orders are for its indoor grown, hand trimmed, hang dried, cured, artisanal cannabis products.
Mernova's customers consist of Cannabis NB, Nova Scotia Liquor Corporation, Yukon Liquor Corporation, and Ontario Cannabis Retail Corporation.
Creso Pharma noted it continues to see a strong uptake of its dried flower and pre-roll joint range, Ritual Sticks.
Recently, 14 new strains were developed under its Ritual Greens brand. The company anticipates sales of these products to new and existing partners in the coming months.
Mernova managing director Jack Yu commented on the news possibly driving the Creso Pharma share price:
Recent purchase orders from both provincial partners and bulk suppliers highlight the traction we are generating in the Canadian market. We continue to receive very good customer feedback on our range of dried flower and pre-roll joint products, which is leading to consumer uptake.
Work to introduce new strains, innovative products and grow our footprint in Canada is ongoing and I am confident that Mernova will continue to generate sales growth.
About the Creso Pharma share price
Over the last 12 months, the Creso Pharma share price has gained almost 200%. However, year-to-date the company's shares have moved the other way, posting a loss of around 40% for shareholders.
Based on today's price, Creso presides a market capitalisation of roughly $135 million and has approximately 1.2 billion shares outstanding.
