Melodiol’s Canadian subsidiary Mernova continues to make strong progress
Mernova launching additional products across various Canadian provinces
Mernova has received purchase orders of $1.3 million in strong start to Q2 FY24
Special Report: Cannabis play Melodiol Global Health and its wholly owned Canadian subsidiary, Mernova, continue to make robust operational progress in Q2 FY24 with additional product launches across various provinces.
Melodiol Global Health (ASX:ME1) says Mernova is continuing to grow its strong position in Canada with approvals for additional cannabis products and strains across several provincial markets.
In April ME1 announced Mernova had successfully received approvals to launch a variety of new stock keeping units (SKUs) across several provincial markets in Canada.
In its latest announcement, the company states that Mernova will launch a variety of new SKUs across various Canadian provinces including Manitoba, Nova Scotia, Ontario, New Brunswick, Newfoundland, Prince Edward Island and Yukon.
Cannabis is legalised in Canada for both medicinal and recreational use with Mernova now having a presence in all of Canada’s major provinces, with additional market entries pending.
Mernova continues to witness strong demand across the Canadian recreational cannabis marketplace, underpinning company revenue.
Strong start to Q2 FY24 with supply agreement
ME1 says Mernova has also signed a supply agreement with Best Kind Edibles for manufacturing of cannabis edibles (2x5mg) which will launch in the fall of 2024.
During Q2 FY24 to date Mernova has received purchase orders worth $1.3m. The strong start to the quarter follows unaudited Q1 revenues of $1.75m, and FY23 revenues of $6.9m.
ME1 recently announced it had generated a 91% increase in unaudited revenues on pcp to $4.4m in Q1 FY24, following record group revenues of $21.6m in FY23.
The company says Q1 FY24 revenue was underpinned by ME1’s 100%-owned Canadian subsidiary, Mernova Medicinal Inc, which generated $1.6m revenue for the period, up 6% on pcp.
Proposed changes to US law could provide further boost
In what could be significant news for ME1 and other ASX cannabis stocks the U.S. Drug Enforcement Administration (DEA) is considering reclassifying cannabis as a less dangerous drug.
The proposal would recognise the medical uses of cannabis but wouldn’t legalise it for recreational use.
“Mernova continues to deliver strong revenue figures and we are very proud of the team for their ongoing commitment to high quality cannabis,” says ME1 CEO and managing director, William Lay.
“We look forward to generating further purchase orders as new products and formats become available.”
This article was developed in collaboration with Melodiol Global Health, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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