Creso Pharma Limited’s (ASX:CPH) wholly-owned subsidiary Mernova Medicinal Ltd has received a C$775,000 purchase order for its premium, cured and hand-trimmed dried medicinal cannabis flower from Israel’s Univo Pharmaceuticals Ltd.
Under the Purchase Order, Mernova will ship two of its premium strains of cured, hand-trimmed, dried medicinal cannabis flower, to Univo in Israel.
Univo is a medicinal cannabis company which has licenses for the entire supply chain including cultivation, production, R&D and distribution. Creso Pharma CEO and Co-Founder, Dr.Miri Halperin Wernli, said his company understands that Univo intends to distribute the product purchased from the Company through Hiliz Ltd, an Israeli firm operating in the medicinal cannabis distribution sector.
Hiliz has direct connections to over 20 Israeli medicinal cannabis pharmacy dispensaries, which may allow the Company’s product to be directly marketed and distributed to patients.
Dr Wernli said the receipt of the Purchase Order is a significant milestone for Creso Pharma, as Israel is recognized as a pioneer of research into medicinal cannabis and is an international hub for medicinal cannabis innovation.
According to a recent white paper from the Israeli government2, medicinal cannabis is currently supplied to more than 50,000 patients in Israel, with world-class research carried out with government approval and encouragement.
Further, Israel’s medicinal cannabis market is flourishing alongside the global market which continues to grow rapidly. In its November 2019 Global Cannabis Report3, cannabis consultancy firm Prohibition Partners estimates that the global legal cannabis market will be worth US$103.9bn by 2024. With medical cannabis legislation being enacted at a faster pace than recreational, Prohibition Partners believes that approximately US$62.7bn of that market will be for medicinal cannabis, which presents a significant opportunity to Creso Pharma and Mernova.
Dr Wernli said half of the Univo order value will be paid in cash within ten business days of the signing of the order, with the remaining 50% to be paid in cash following delivery in Israel.
Delivery is expected to be completed within one month, subject to the grant of an export permit by Health Canada.
Univo will manage and coordinate the smooth transition of Mernova products into Israel while establishing processes for future shipments.
We are extremely pleased to have received our first Israeli purchase order for the quality strains of dried flower being produced at Mernova,” Dr Wernli said.
“Following the recent deal we closed in North America it shows we are making significant inroads into new markets. Despite the challenges the world faces due to Covid-19, Creso Pharma remains on a strong trajectory for 2020.
“The order is the company’s first from Israel and we hope to expand on this initial order in the coming months. We also will continue to work hard to penetrate new markets as Mernova moves closer towards receiving EU GMP certification.”