Three CEOs within 18 months, a serious listing breach, and an ASX censure. It seems like the stars were not so aligned for cannabis manufacturing company Creso Pharma’s past (formerly ASX: CPH), but with a fresh leadership and a recent name change to Melodiol (ASX: ME1), the Company is back to chasing its American and European dreams.

Melodiol had a strong start to the quarter, already generating $1.6 million in new unaudited revenue and confirmed purchase orders as of 17 July 2023. Just two weeks into the quarter, they’re on track to exceed the $4.7m in revenue reported in the June quarter, a record at the time.

Melodiol also reported $8.6m sales for the calendar year as of 17 July 2023, reaching a level close to the total revenue achieved in the entire year of 2022 ($8.7m) thanks to strong contributions from its 100%-owned subsidiaries Mernova Medicinal Inc and Health House International (HHI), as well as Creso Pharma Switzerland. Mernova supplies recreational cannabis products in the Canadian market, while HHI is a global medical cannabis wholesaler of GMP pharmaceutical products with operations in Australia, UK and Germany.

Though it was undisclosed how much each subsidiary contributed as per June quarter, Melodiol primarily attributed the strong start to the September quarter to HHI, considering HHI had only been acquired by Melodiol in May 2023. Melodiol previously highlighted that the acquisition and integration of HHI significantly increased the scale of its business, in which combined March quarter revenues of Melodiol and HHI represented $33.6m on an annual basis.

Commenting on the results, Melodiol CEO William Lay said: “In recent months, Melodiol has undertaken a number of steps to optimise its operations to capitalise on revenue growth opportunities. The group achieved exceptional momentum during the last quarter and we are pleased to see this continue in the early stages of Q3 FY2023.”

Lay also mentioned that the management team is actively assessing a number of opportunities that could expand the business outreach further and unlock additional value for shareholders. No further details regarding these opportunities have been provided so far.

A rocky past while still operating under Creso Pharma, the Company made national headlines when founder Adam Blumenthal stood down in November 2021 due to an ASIC and AFP raid. Creso received a formal censure from the ASX for “engaging in a serious breach of listing rules”. A censure allows the ASX to take over a company’s news ticker and speak directly to its shareholders.

The Company later appointed James Ellingford as a Director, but also made unceremonious headlines when documenting his volatile relationship with a woman 35 years his junior on TikTok. Those videos also showed bags of white powder that he later claimed as bags of flour.

Co-founder Boaz Wachtel soon took over as temporary chairman, and later on the Company began initiating a fresh start by appointing William Lay in January 2022 as new CEO and Managing Director. Lay’s responsibilities include advancing the company’s growth strategy in North America, pursuing a dual listing on NASDAQ, overseeing global operations including the Swiss division, exploring potential new markets, and ultimately distancing Creso from its tainted past.

Under Lay’s leadership, Creso Pharma officially rebranded as Melodiol, which was said to be a part of the Company’s broader strategy for further M&A opportunities in the US and other key markets. It now focuses on developing cannabis, hemp-derived and other plant based therapeutic, nutraceutical, and lifestyle products targeting global consumers.

Melodiol now continues to prioritise research and development (R&D) and regulatory pathways for novel treatments.

Moving on from the ill-fated combination of the Creso Pharma name and the actions of former Directors, is Melodiol now finally on track to get the ending that it deserves, defying all odds?