Biome Grow Inc. today released consolidated financial statements for the second quarter and first half of fiscal 2019. The unaudited interim consolidated financial statements including the notes thereto, the Company’s corresponding Management’s Discussion and Analysis and a supplemental information presentation are available on the Company’s website at www.biomegrow.com under “investors” and on SEDAR at www.SEDAR.COM. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Highlights of the Quarter:
Revenue in Q2 was approximately four times the level realized in Q1: $1.35MM vs $341M. Gross profit approximately tripled over the same period: $600M versus $204M.
Average selling price per gram increased by 15% from $6.80 to $7.86 while the average cost per gram of our cultivated product declined to $2.31 from $2.72 sequentially.
Highland Grow was net income profitable in Q2 on a stand-alone basis, a significant achievement for an operation in only its second quarter of commercial production.
Biome received approval to sell cannabis in the province of Saskatchewan.
Subsequent to the quarter, there were three other positive developments which we feel bode well for Q3:
Biome introduced new packaging automation in its facility in Antigonish, Nova Scotia that will greatly increase the amount of product Highland Grow can supply its customers with.
Earlier this month, Biome announced that 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
Also, in August, Biome received Environmental Approval for the refurbishment of its flagship facility in Newfoundland and Labrador.
Management defines “EBITDA” as Income (loss) Before Other Items plus Amortization. EBITDA = ($811,508) + $62,238 = ($749,270)
Management defines “Cash cost to produce, per gram” as costs associated with growing, processing and shipping of product divided by the grams of cultivated product produced and sold during the period. Cash cost to produce, per gram = $137,657/59,592 = $2.31.
Management defines “Average selling price, per gram” as Revenue in dollars divided by the total number of grams sold during the period. Average selling price per gram = $1,347,019/171,468 = $7.86.
Biome CEO Khurram Malik: “We’re very proud of the work our Highland Grow team in Nova Scotia has done to achieve a significant sequential ramp up in business in the second quarter. We are also 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 (Q3), is also achieving a significant increase in business over what we are reporting today for Q2 and we are looking forward to sharing these results once this period has concluded.”
Biome wholly owns five subsidiaries, including: The Back Home Medical Cannabis Corporation, a company incorporated under the laws of the Province of Newfoundland and Labrador and in the late stages of applying for a license under the Cannabis Act; Great Lakes Cannabis, a company incorporated under the laws of the Province of Ontario and in the late stages of applying for a license under the Cannabis Act; Highland Grow Inc., a licensed producer in Nova Scotia under Canada’s ACMPR; Red Sands Craft Cannabis Co., a company incorporated under the laws of the Province of Prince Edward Island, and; Weed Virtual Retail Inc., a company incorporated under the laws of the Province of Ontario in the business of operating a new virtual reality technology platform focused exclusively on the medical and recreational cannabis markets. Biome is a Canadian-based company with national and international business interests.
Biome Grow Inc.今天发布了2019财年第二季度和上半年的合并财务报表。未经审计的中期合并财务报表，包括其附注、公司相应管理层的讨论和分析以及补充信息。公司网站www.biomegrow.com“Investors”下有“Ormation Presentation”，SEDAR网站www.sedar.com上有“Ormation Presentation”；本新闻稿中的所有财务信息均以加元报告，除非另有说明。
Biome首席执行官Khurram Malik说：“我们对我们位于新斯科舍省的高地成长团队在第二季度实现业务连续大幅增长所做的工作感到非常自豪。我们还非常自豪的是，Highland Grow在进入商业生产后不到两个季度就实现了盈利。这符合我们从一开始就提出的愿景，即用最终客户认为是针对其独特需求而设计的产品打造强大的本地品牌。
Biome全资拥有五家子公司，包括：Back Home Medical Malphain Corporation，一家根据纽芬兰省和拉布拉多省法律注册并处于根据《大麻法》申请许可证后期的公司；Great Lakes Malphain，一家根据《大麻法》注册的公司。安大略省法律以及根据《大麻法》申请许可的后期阶段；加拿大ACMPR下新斯科舍州许可生产商Highland Grow Inc.；根据爱德华王子岛法律成立的红沙工艺大麻公司。d；weed virtual retail inc.，一家根据安大略省法律注册成立的公司，经营一个新的虚拟现实技术平台，专门针对医疗和娱乐大麻市场。Biome是一家加拿大公司，拥有国家和国际商业利益。