The Creso Pharma Ltd (ASX: CPH) share price is sliding in afternoon trade today and now trades at 11.3 cents apiece.
Whilst there's been no market sensitive information released today, Creso Pharma shares are struggling despite the company announcing an update on testing of its new cannabis strains.
Read on for more details.
What did Creso Pharma announce?
Creso advised that its Canadian subsidiary, Mernova, has completed third-party testing of "THC content for four new cannabis strains with a Health Canada certified lab".
Each new strain demonstrated "a major achievement" and exceeded the industry average THC content of 15% to 20%, recording an average of 19.6–30.1% THC content.
Specifically, the New Miracle Alien Cookies strain showed a 30.1% THC concentration – almost 50% higher than Creso Pharma's competitors' products.
This is expected to give Creso a competitive advantage in the Canadian market, increase product demand, and grow market share, per the release.
The release also notes the company has substantially increased the skill and experience levels of its employees, in order to commence advanced grow methods.
Supporting the staff changes are "multiple process improvements and upgrades (that) are currently underway", each in an effort to increase plant yield and quality.
Aside from this, Creso advises that an additional 4 strains have been started from seed, and will undergo testing to determine sex in the coming months. They are expected to be introduced sometime in 2022.
With this momentum, the company stated that "sales continue to grow, (with) an additional $152,236 in purchase orders secured in the last week".
That builds on a mix of bulk purchase orders for $800,000 that was announced for Mernova's cannabis product last week.
Investors aren't chasing the Creso Pharma share price today, and are instead selling the cannabis company's shares in afternoon trade, pushing it 2% lower at last check.
Creso Pharma share price snapshot
It's been a difficult year to date for the Creso Pharma share price, having posted a loss of 37.5% since January 1.
Yet, it has gained over 240% in the past 12 months, even after a 10% decrease this past month.
This result has far outpaced the S&P/ASX 200 index (ASX: XJO)'s gain of around 25% in the last year.
