Creso Pharma secures $900k medicinal cannabis order
10 July 2020, Written by Business News Australia
Mernova Medicinal Ltd, a wholly-owned subsidiary of Creso Pharma Limited (ASX:CPH), has received a US$625,000 (AUD$901,000) purchase order for its premium, cured and hand-trimmed dried medicinal cannabis flower.
The order from Univo Pharmaceuticals Ltd (TLV: UNVO) is Mernova's second wholesale purchase order from Univo, after a C$775k order in April, and it provides the opportunity to leverage Univo's extensive distribution networks into the rapidly growing Israeli market.
Listed on the Tel Aviv Stock Exchange, Univo has licenses all along the medicinal cannabis supply chain including cultivation, production, research and development, and distribution.
Under the terms of the Purchase Order, Mernova will ship four of its premium strains of cured, hand-trimmed, dried medicinal cannabis flower, to Univo in Israel.
An initial 25 per cent of the order value will be paid in cash upon receipt of the export license from Health Canada, a further 25% will paid upon receipt of goods at TLV Ben Gurion Airport, and the remaining 50 per cent of the order value will be paid within 30 business days of the goods being delivered at Univo's factory in Israel.
Delivery is expected to be completed within one month, subject to the grant of an export permit by Health Canada.
The Purchase Order cannot be terminated by Univo, but Univo has the right to reject the product and receive a partial refund if any material defects are identified within 21 business days of delivery.
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Last month, Creso's Mernova strengthened its senior management team with the appointment of two executives who formerly worked at Canopy Growth Corp (TSX:WEED | NYSE:CGC), one of the world's largest cannabis companies.
Creso's Canadian Entry imminent
Commenting on the significance of this order, Creso CEO and co-founder Dr Miri Halperin Wernli said, "Following our initial entry into the Israeli market in April this year, we are delighted to have received another significant purchase order from Univo which further strengthens our penetration into this growing market."
"Univo has an impressive distribution network, including significant connections to pharmacies and patients in Israel, so this truly is a tremendous growth opportunity for Creso.
"Israel is widely recognised as one of the more progressive and active cannabis markets globally and Univo's acceptance and continued demand for our cannabis is a major testament to the quality of our product and the expertise of the Mernova team.
"As wholesale demand for our products continues to solidify, we are also preparing for Mernova's launch into the Canadian retail market which is another exciting near-term opportunity.
''With several value catalysts on the horizon I look forward to providing further updates from across the business in the near-term."
Creso Pharma brings pharmaceutical expertise and methodological rigor to the cannabis world and strives for the highest quality in its products. It develops cannabis and hemp derived therapeutic, nutraceutical, and life style products with wide patient and consumer reach for human and animal health.
The company uses GMP (Good Manufacturing Practice) development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland. It has worldwide rights for a number of unique and proprietary innovative delivery technologies which enhance the bioavailability and absorption of cannabinoids.
This article was written in partnership with Creso Pharma.
Business News Australia
Author: Business News Australia