The Canadian company said the third quarter looked bright having won licenses to distribute cannabis in Saskatchewan, New Brunswick and Manitoba
Biome Grow Inc () (OTCMKTS:BIOIF) revealed Thursday 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.
In a statement accompanying the Canadian cannabis company’s latest numbers, Biome 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.”
READ: Biome Grow wins license to distribute cannabis in 'Friendly Manitoba'
“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.
The cannabis company said second-quarter revenue quadrupled 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.
The average selling price per gram increased 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.
The company highlighted that 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. Highland, a cannabis grower near Antigonish, is Biome Grow’s first licensed producer under Canada’s Cannabis Act.
The company said the third quarter was shaping up well as Biome had received approval to sell cannabis in the province of Saskatchewan. Earlier this month, Biome said it had increased its national supply footprint to five provinces from three, adding Manitoba and a supply agreement with the provincial government of New Brunswick.
In August, Biome received environmental approval for the refurbishment of its flagship facility in Newfoundland and Labrador.
Rapidly growing marijuana group Biome Grow has acquired five subsidiaries and has so far announced around 390,000 square feet of production capacity in operation or under development in Ontario and Atlantic Canada.
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.
Contact Uttara Choudhury at [email protected]
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