Creso Pharma Ltd’s (ASX:CPH) (OTCMKTS:COPHF) (FRA:1X8) wholly-owned subsidiary Mernova Medicinal Ltd has secured a US$625,000 purchase order for its premium, cured and hand-trimmed dried medicinal cannabis flower from Univo Pharmaceuticals Ltd (TLV:UNVO).
This is the second wholesale order from Univo and will allow Creso to leverage Univo’s extensive distribution networks into the rapidly growing Israeli market.
Univo is a medicinal cannabis company which has licences for the entire supply chain including cultivation, production, research & development and distribution.
Under the purchase order, Mernova will ship four of its premium strains of cured, hand-trimmed, dried medicinal cannabis flower to Univo in Israel.
“Testament to quality”
Creso Pharma chief executive officer and co-founder Dr Miri Halperin Wernli said: “Univo has an impressive distribution network, including significant connections to pharmacies and patients in Israel, so this truly is a tremendous growth opportunity for Creso.
“Israel is widely recognised as one of the more progressive and active cannabis markets globally and Univo’s acceptance and continued demand for our cannabis is a major testament to the quality of our product and the expertise of the Mernova team.”
An initial 25% of the order value will be paid in cash upon receipt of the export licence from Health Canada.
A further 25% will be paid upon receipt of goods at TLV Ben Gurion Airport while the remaining 50% will be settled within 30 business days of the goods being delivered at Univo’s factory in Israel.
Delivery is expected to be completed within one month, subject to the grant of an export permit by Health Canada.
Preparing for Canadian launch
Dr Wernli said: “As wholesale demand for our products continues to solidify, we are also preparing for Mernova’s launch into the Canadian retail market which is another exciting near-term opportunity.
“With several value catalysts on the horizon, I look forward to providing further updates from across the business in the near-term.”