Melodiol Global Health

Overview

The global regulatory climate around cannabis use is evolving and has resulted in a huge investment opportunity for investors seeking to capitalize on this emerging market. A significant player in the global cannabis market, Melodiol Global Health’s (ASX:ME1, FRA:1X8) value proposition is founded on its strategic operations in both Canada and Australia.

In recent years, countries like Canada and Australia have established new regulations to legalize cannabis use, either for recreational or medical purposes – or both. Other countries and regions are not far behind in their cannabis regulation journey.

Melodiol oversees multiple global business units that provide everything from recreational and medical cannabis to hemp-based, athletic, beauty and personal care products. Through subsidiary Halucenex Life Sciences, the company has also dipped its toes into the medical psychedelics market.

Melodiol's two most significant subsidiaries, by far, are Mernova and Health House International. The former is a licensed Canadian producer of small-batch, high-quality craft cannabis with incredibly strong revenue growth. The former is a leading distributor of medical cannabis in Australia with additional non-cannabis operations in the United Kingdom.

The company aims to increase shareholder value and spur further growth in its subsidiaries through optimisation which will ultimately result in improved operating and financial performance. Group revenues for the first half of 2023 totalled AU$6.99 million, representing a 62-percent increase from the same period in 2022 at AU$4.32 million.

Accounting for the recent acquisition of Health House International, unaudited pro forma revenue increased to AU$8.26 million or AU$33 million on an annualised basis — a 280-percent increase from the company's 2022 revenue. Unaudited net sales for the combined Melodiol group in Q2 2023 totaled $4.74 million, a 105-percent gain on the previous quarter and a 202-percent increase on the previous corresponding period. The company has also demonstrated a strong growth trajectory into Q3 2023.