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