Quite strong quarter for Creso (some might be tempted to say at least). I still can't quite get my head around whether there's going to be a decent recurring market for these marijuana stocks. I have small holdings in AC8 and CPH - toes in the water - which have been underwhelming (worse than underwhelming in the case of AC8) and there will no doubt be some consolidation and shaking out. But maybe there's a little glimmer in CPH...

• Group revenues of A$2,752,000 for the quarter, an increase of 36% QoQ and 93% on the prior corresponding period
• Creso Group remains well capitalised with A$5,086,000 cash at bank as at 31 March 2022 to progress growth initiatives to leverage the Company’s US expansion
• 17% quarter on quarter reduction in cash spend
• Significant growth from the Mernova acquisition

Chief Executive Officer and Managing Director, William Lay said:

“Revenues from all operating divisions continue to increase, and with several key growth and product development initiatives materialising this quarter we are set to see continuing progress throughout the calendar year. 

“We have remained active on the M&A front with the acquisition of Sierra Sage Herbs and their leading Green Goo and Southern Butter product ranges. The acquisition not only provides us with an instant footprint in the large US market, but access to strong brands, distribution relationships manufacturing partnerships, and an excellent management team who have scaled the business impressively since beginning operations in 2008. We have already begun extensive product development discussions and are working on various ways to accelerate the market penetration for all our CBD products. We have noticed an increase in the number of opportunistic, strategic M&A possibilities in the market over the quarter, and continue to carefully assess additional opportunities for accretive transactions.

“Considerable progress has also been made on all our other operating divisions. Mernova has achieved a significant market share milestone whilst also expanding into new provinces in Canada all whilst moving forward with product development initiatives. Likewise, product development continues with our Nutraceutical division and new relationships are being built in LATAM. And lastly, Halucenex continues to hit significant milestones on the way to commencing its phase II clinical trial. 

“I am excited to continue to witness the growth of the Company as we move into the next phase of execution. We look forward to bringing additional news to our shareholders over the coming weeks and months.”