Biome Grow Inc (CSE:BIO) (OTCQB:BIOIF) CEO Khurram Malik said Wednesday that “very strong” demand was driving the company to expand operations in Nova Scotia, as well as Ontario and Newfoundland this summer.
Sales in the fiscal first quarter amounted to $340,754, in line with management’s expectations of early commercial sales in the firming Nova Scotia market.
The first shipment of dried cannabis was delivered to the Nova Scotia Liquor Corporation on January 10 with further shipments later in the quarter.
The company received positive feedback that the product was “well received by consumers with stocks often selling out quickly.”
Due to “healthy demand for locally produced” cannabis, Biome said it is planning an expansion of its Nova Scotia-based subsidiary Highland Grow Inc. In March this year, Highland Grow indicated it was partnering with the Mi’kmaw Native Friendship Centre to fill up at least 25 new job openings.
Sure-footed ramp up
“We are pleased with the launch of our business and with the ramp up of our cultivation facility in Antigonish Nova Scotia” said Malik in a statement. “Initial demand for our products remains very strong and we look forward to expanding our operations both in Nova Scotia as well as in Ontario and Newfoundland this summer as previously announced.”
The company is selling high quality flower and pre-roll products at a premium. The average selling price during the period was $6.80 per gram, partially reflecting early generation product with lower THC levels and new pricing for the Nova Scotia market.
In the current quarter, Highland Grow is netting higher revenue between $7.50 to $8.30 per gram, due to brand recognition, high percentages of desired cannabinoids, attractive terpene mixes, a dense and well-trimmed flower product, and packaging that limits waste.
Strong start to fiscal 2Q
Inventory at the end of the fiscal first quarter was 84,080 grams of finished dried cannabis. The finished goods inventory balance at the end of the quarter was largely shipped out in the first month of the fiscal second quarter reflecting revenue in excess of what the company generated in the fiscal first quarter, said the company.
Net loss for the quarter was $1,068,130 in line with internal budgets for this initial quarter of production.
During the fiscal first quarter, Biome achieved important milestones which included:
- The first commercial harvests of cannabis from its Antigonish, Nova Scotia cultivation and distribution facility
- The commencement of shipments to licensed retailers in Nova Scotia and the onboarding of the Newfoundland and Labrador market
- The announcement of a memorandum of understanding to purchase up to 20,000 kg per year of hemp-grown CBD extract from industrial hemp grower CBD Acres
- The company’s listing on the OTCQB exchange
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.
Highland Grow is a cannabis grower near Antigonish, Biome Grow’s first licensed producer under Canada’s Cannabis Act. 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]