Biome Grow Inc () (OTCMKTS:BIOIF) is a rapidly growing marijuana group with five subsidiaries which has around 390,000 square feet of production capacity in operation or under development in Ontario and Atlantic Canada.
Highland Grow, a cannabis grower near Antigonish, is Biome Grow’s first licensed producer under Canada’s Cannabis Act. It completed the first cannabis shipment to the Nova Scotia Liquor Commission at the beginning of 2019.
Biome’s subsidiaries in other provinces include The Back Home Medical Cannabis Corporation in Newfoundland and Labrador, Great Lakes Cannabis and Weed Virtual Retail in Ontario, and Red Sands Craft Cannabis in Prince Edward Island.
The company has also signed a Memorandum of Understanding (MoU) with CBD Acres Manufacturer Inc who will provide Biome with preferential access to a high-quality, low-cost supply of Cannabidiol (CBD) concentrate.
The semi-exclusive agreement is for a five-year period and positions CBD Acres as the supplier for Biome Grow with a commitment of up to 20,000 kg per year of locally sun-grown, hemp-based CBD extract using the company’s Nano lipid, solventless extraction process.
This arrangement provides certainty of supply for Biome as well as assurance of a market-best price for its customers.
At the start of August, Biome revealed it had increased its national supply footprint to five Canadian provinces from three, adding Manitoba and a supply agreement with the provincial government of New Brunswick.
Later that month, Biome also announced that it had received environmental approval for the refurbishment of its flagship facility in Newfoundland and Labrador.
At the end of August, Biome Grow announced that its licensed Nova Scotia cannabis producer Highland Grow was profitable in the second quarter on a standalone basis, fueling record revenue for the group.
Highland Grow only delivered its first shipment of finished cannabis products packaged for consumers in Nova Scotia to the Nova Scotia Liquor Corporation on January 10.
The company said Highland Grow was net income profitable in the second quarter on a standalone basis, a remarkable achievement for an operation in only its second quarter of commercial production.
Looking at the overall financials, the cannabis company saw second quarter revenue quadruple to $1.35 million from $341,000 in the first quarter.
Similarly, gross profit tripled in the quarter to $600,000, compared to $204,000 in the previous quarter.
It said the average selling price per gram increased in the second quarter by 15% from $6.80 to $7.86, while the average cost per gram of cultivated product declined to $2.31 from $2.72 sequentially.
Announcing second quarter numbers, Biome Grow said the third quarter was shaping up well, with the company having also received approval to sell cannabis in the province of Saskatchewan.
Reporting its latest numbers in August, Biome Grow CEO Khurram Malik said: “We are very proud that Highland Grow was able to achieve profitability less than two quarters after entering commercial production.
“This aligns with our stated vision from the start to build strong, local brands with products that end customers feel are designed specifically for their unique requirements.”
“Our current quarter is also achieving a significant increase in business over what we are reporting today for the second-quarter. We look forward to sharing these results once this period has concluded,” he added.