Why the Creso (ASX:CPH) share price is smoking the market today

The Creso Pharma Ltd (ASX:CPH) share price has been smoking the market on Thursday morning. Here’s why it is racing higher…
The post Why the Creso (ASX:CPH) share price is smoking the market today appeared first on The Motley Fool Australia. –

cannabis leaves on a rising line graph representing growth of ASX cannabis shares

The Creso Pharma Ltd (ASX: CPH) share price is racing higher on Thursday following a positive announcement.

At the time of writing, the cannabis company’s shares are up 6% to 20.7 cents.

What did Creso announce?

This morning Creso provided the market with an update on its Canadian subsidiary, Mernova Medicinal.

According to the release, Mernova Medicinal has secured new purchase orders valued at C$145,192 (A$150,770) from the Ontario Cannabis Store and Yukon Liquor Corporation.

The company notes that these orders include a repeat order from the Ontario Cannabis Store and the second order for its pre-roll joint range in a very short period. Furthermore, the new orders also include a maiden purchase order for Mernova’s new one ounce bag offering.

Ontario Cannabis Store is the crown agency solely owned by the Province of Ontario. It reports directly to the Ministry of Finance and is the province’s only retailer and wholesaler of legal recreational cannabis.

Positively, management appears to be expecting further orders in the near future. It advised that it continues to witness strong uptake of its products across Canada and shorter intervals between purchase orders.

It believes this is very encouraging and highlights the company’s strong brand recognition in a highly competitive market.

Management commentary

Mernova’s Managing Director, Jack Yu, said: “To have secured these new purchase orders is a major achievement for Mernova. Particularly, the repeat order from OCS is very pleasing and our second order for Ritual Sticks in another new province highlights the significant potential the product has amongst consumers.”

“The pre-roll market segment is booming and offers Mernova a huge opportunity that we plan to capitalise on to the fullest. We are very confident that we can leverage our growing reputation as a high-quality, artisanal, craft cannabis producer, to make headway into this market, and establish ourselves as producers of some of the best pre-roll joints in the country with our Ritual Sticks, as we’re currently doing with our Ritual Green brand, in the dried flower market.”

Mr Yu also sees a big opportunity for its new one-ounce bag offering.

“We are also very happy to have launched our new one-ounce bag offering, which will allow consumers to purchase more of their favourite cannabis at competitive prices, by offering a volume discount. The larger ounce offering will also allow the Company to streamline its inventory practices, ensuring we retain the highest standard and quality of cannabis in our range of high-quality offerings,” he concluded.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Creso (ASX:CPH) share price is smoking the market today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!