Creso Pharma Shares Jumps 12% after Securing New Purchase Orders (ASX:CPH)

By ,

The Creso Pharma Ltd [ASX:CPH] shares soared in early morning trade after the company announced its wholly-owned Canadian subsidiary, Mernova, secured over $800,000 in new purchase orders.

CPH’s share price has since pulled back and is now trading hands at 11 cents a share.

But sentiment is still riding higher, with Creso Pharma up 2.3% at time of writing.

ASX CPH - Creso Pharma Share PriceSource: Tradingview.com

 Creso Pharma is a global pharmaceutical giant with a portfolio of cannabis-related products in therapeutics, nutraceuticals, lifestyle, animal care, and health.

Today, we’ll look at the highlights of today’s announcement and reveal our outlook on Creso shares in the months ahead…

Incoming revenue

According to today’s announcement, the $800,000 coming in will be a combination of bulk supply orders and ongoing sales with local provincial partners.

These partners make up Mernova’s dedicated customer base and include companies like Nova Scotia Liquor Corporation, Ontario Cannabis Retail Corporation, and Cannabis NB.

The partners are buying the pharmaceutical company’s ‘indoor grown, hand trimmed, hang dried, cured, artisanal cannabis products.’

Notably, these purchases are not one-offs. The orders are recurring.

How to Limit Your Risks While Trading Volatile Stocks. Learn more.

Optimism is contagious

Managing Director Jack Yu commented on the news:

Recent purchase orders from both provincial partners and bulk suppliers highlight the traction we are generating in the Canadian market. We continue to receive very good customer feedback on our range of dried flower and pre-roll joint products, which is leading to consumer uptake.

Work to introduce new strains, innovative products and grow our footprint in Canada is ongoing and I am confident that Mernova will continue to generate sales growth.

14 new strains have been developed under Mernova’s Ritual Greens brand.

The company expects these products will sell to both new and current partners in the next few months.

CPH share price outlook

Creso is known among both small-cap and cannabis stock enthusiasts for its volatility.

While up 180% in the last 12 months, the CPH stock is actually down 40% year to date.

Almost any small-cap can rise quickly (provided it has a solid business model, a great product, and is riding the coattails of a booming trend).

It’s all about knowing how to find those sorts of companies before they explode.

If you’re interested in exploring other small-cap stocks that could potentially soar this year, our small-cap analyst Ryan Clarkson-Ledward has discovered four little-known stocks that the market may be undervaluing right now.

But according to Ryan, they look way too exciting to ignore…

Get the free report here.

 

Regards,

Kiryll Prakapenka,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

ASX 200 News Weekly Wrap — Magnis, Creso, Cettire, Crown and Commonwealth Bank

We review this week’s ASX news, from MNS and CPH getting caught up in ASIC probes to CBA shares tanking on their latest quarterly.

Why is the Creso Share Price Falling? (ASX:CPH)

The Creso Pharma [ASX:CPH] share price is falling as ASIC probes EverBlu Capital, whose executive chairman also serves as CPH’s non-executive chair and co-founder.  

Creso Pharma Secures New Win in Canada — Shares Up 8% (ASX:CPH)

Aussie pot stock Creso Pharma [ASX:CPH] share price is on the up today. The share price is currently trading 8% higher at time of writing.

Creso Share Price Surges 9% on June Quarter Results (ASX:CPH)

The Creso Pharma Ltd [ASX:CPH] share price is up 9% after the release of its June quarter results. The CPH share price were trading for 12 cents at time of writing…

Creso Share Price Up as Its Subsidiary Announces New MOU (ASX:CPH)

Pot stock Creso Pharma [ASX:CPH] is on the up today. Shares are trading 1.54% higher as the company announced some new developments from its Canadian subsidiary: Halucenex…

CPH Share Price Up on Completed Halucenex Acquisition (ASX:CPH)

The Creso Pharma [ASX:CPH] share price jumped 8% after completing the acquisition of Canadian psychedelics company Halucenex Life Sciences.