Mernova’s Strong Progress Continues

Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’) is pleased to advise that its wholly owned Canadian subsidiary, Mernova, continues to make strong operational progress.

Highlights:

• Additional product launches across various provinces in addition to those previously announced
• Agreement with Best Kind Edibles signed for manufacturing of cannabis edibles as an extension to existing product suite
• Q2 confirmed purchase orders of $1.3m to date, highlighting ongoing strength of Ritual brand at the midpoint of the quarter
• Purchase orders follow unaudited Q1 revenues of $1.75m and FY23 full year revenues of $6.9m

In recent weeks, Mernova has achieved further new product launches, in addition to those announced on 2 April 2024. These include:

• Manitoba
  • Two new products listed, Sacred Sage 3.5g and Sacred Sage 3x0.5g
• Nova Scotia Liquor Commission
  • French Cookies 12x0.5g pre rolls one time offer approved
• Ontario Cannabis Store
  • Black Mamba 12x0.5g pre-rolls now approved
• New Brunswick
  • Black Mamba / French Cookies / Halifax Sage combo pack approved
• Newfoundland
  • 9 SKUs pending for June launch
• Prince Edward Island, Limited Edition Program for the following products
  • French cookies 3.5g
  • Halifax Sage 3.5g
  • Black Mamba 3.5g
  • Black Mamba / French Cookies / Halifax Sage combo pack
  • Black Mamba / Sugar Bumb Punch pre rolls combo paclk
• Yukon Liquor Commission approved 6 new SKUs for launch in May 2024
  • Grape Cream Cake pre rolls 3x0.5g, 7x0.5g, 10x0.5g and 12x0.5g formats
  • Sugar Bomb Punch Vape 1.0g
  • Black Mamba Bubble Has Infused Blunt 1x1.0g

These results indicate the demand for the Ritual brand’s growing suite of products and strains. As an update to the 2 April 2024 announcement, Mernova has now signed a supply agreement with Best Kind Edibles for manufacturing of cannabis edibles (2x5mg) which will launch in the fall of 2024. During Q2 to date, Mernova has received purchase orders for $1.3m (C$1.2m at current C$ to A$ of 1.11) of product. This strong start to the quarter follows unaudited Q1 revenues of $1.75m, and FY23 revenues of $6.9m.

Management commentary:

CEO and Managing Director, Mr William Lay said: “Mernova continues to deliver strong revenue figures and we are very proud of the team for their ongoing commitment to high quality cannabis. We look forward to generating further purchase orders as new products and formats become available.”

Click here for the full ASX Release

This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.