Creso Pharma has announced strong growth for the end of 2020 with the diversified Cannabis and CBD manufacturer reporting a 740% increase in sales, to $709,000, over the previous quarter.
The company manufactures recreational cannabis in Canada via its Mernova Medicinal subsidiary, while in Switzerland it produces hemp-based animal health products it has been selling to Latin America.
It also produces CannaQIX CBD nutraceutical lozenges for sale in Australia and South Africa, and its distribution partner plans to expand sales elsewhere in Africa. Australian sales currently require a prescription, but Creso is optimistic recent regulatory changes will let pharmacists sell the product directly.
Creso (ASX:CPH; FRA:1X8) management also expects ongoing substantial growth in purchase orders during the current period and beyond.
“Pleasingly, Creso continued to expand its global footprint. Through the company’s animal health business, we entered into the Latin American market and Mernova continued to gain traction in Canada, progressing agreements and purchase orders to unlock a number of new provinces. The company also furthered its presence in the Australian and New Zealand market, securing an agreement with Martin & Pleasance to drive growth.” says Creso’s non-executive chairman Adam Blumenthal.
“Strong sales were achieved over the period, stemming from a scale-up of Mernova’s operations and the receipt of a number of new orders.
“While the uptick in customer receipts is very pleasing, we are now focused on continuing this rapid growth.
“The company has a number of purchase orders on and across all business divisions, which we expect to complete in the coming months, allowing further sales to be recognised.
“Board and management will continue to monitor regulatory shifts in key markets. Recent developments in the US have the potential to positively impact Creso Pharma and we are very well placed and funded to capitalise on these opportunities.
“We remain in a very strong position underpinned by growing sales revenue and burgeoning market opportunities, and we look forward to accelerating our strategic initiatives to deliver returns for our valued shareholders.” concludes Blumenthal.
CannaQIX®, the company’s nutraceutical product line has enjoyed considerable success in recent months with a second purchase order from Pharma Dynamics valued at $320,000 now delivered.
Creso Pharma’s animal health product line, anibidiol® has become the first approved CBD hemp-based complementary feed for pets in Latin America, an important milestone in terms of penetrating a high-volume market.
Retail demand in Europe is also growing rapidly with four purchase orders already secured.
The company raised $8.99 million in capital raising during the quarter, with Blumenthal committing to a $1 million share purchase. Blumenthal also lent the company $3 million on an unsecured, interest-free basis, which was fully repaid following shareholder approval December 23 with the issuance of shares and options.
Source | Creso Pharma