On January 15, 2019 Biome Grow (BIO.C) expanded its presence in the U.S. capital markets, by listing on the OTCQB – which “introduces more stringent reporting standards and is generally trusted by U.S. investors.”
“This is an important milestone as we aim to increase our presence among American retail and institutional investors,” stated CEO Khurram Malik about the move to OTCQB Venture Market. “This will provide investors with additional liquidity and increased trading capacity.”
Canada is the leader in the global cannabis industry thanks to its robust federal regulatory environment. Many U.S. companies have opted to list only on the CSE. These trends have made it difficult for some U.S. investors to purchase cannabis stocks without buying stock on a foreign exchange.
The amendment allows Highland Grow to sell cannabis directly to end consumers through medical and recreational cannabis channels – “dramatically increasing product availability” – while positioning Biome Grow to eventually participate in international cannabis markets.
For the uninitiated, Biome Grow is unapologetically focused on the local consumer for now – with an emphasis on Atlantic Canada.
The company has five divisions:
- Back Home is a late-stage applicant which will service both Newfoundland and Labrador.
- Great Lakes Cannabis: Acquired on March 2, 2018, Great Lakes Cannabis is late-stage applicant located in Norwich, Ontario.
- Highland Grow: A licensed producer in Antigonish, Nova Scotia. Highland Grow was Biome’s first licensed producer under Canada’s ACMPR guidelines.
- Red Sands Craft Cannabis: The company under development to create cannabis products from extraction for sale in the rest of Canada and beyond.
- Weed Virtual Retail: Weed VR is a multi-faceted product capable of being packaged for recreational, promotional, educational and medical use cases.
Nova Scotia Deputy Premier Karen Casey told The Chronicle Herald that cannabis demand is currently outstripping supply by about 60% in the province.
“We’ve been working on a supply agreement with the Nova Scotia Liquor Corp (NSLC) for six months and have been in close contact with them on a weekly basis,” stated Frank MacMaster, President of Highland Grow, “They’re eager to have another local producer on their shelves.”
According to the Chronicle, “The four strains Highland Grow has prepared for immediate sale are White Russian, Ice Cream, All Kush and Sensistar, all are hybrids of Indica and Sativa.”
Operating at full capacity, the Ohio, Antigonish County, operation can produce about 700,000 grams of marijuana a year.
Selling weed in Nova Scotia is like trying to coax the Irish to have a sip of Guinness.
Stats Canada Q3, 2018 National Cannabis Survey confirmed Atlantic Canada’s high demand for pot.
National Cannabis Survey Highlights:
- Nova Scotians consume 51% more cannabis per capita than the national average.
- Nova Scotians have the highest cannabis consumption rate in Canada
- 23% of Nova Scotians consumed pot in Q3, 2018.
- 19.4% of Atlantic Canadians consumed pot in Q3, 2018
- This is 4% higher than the national average of 15.2%.
“We spotted the lack of competition and high per capita consumption early on and set out to acquire subsidiaries and establish partnerships across the region,” stated Malik.
On October 17, 2018 each resident of Nova Scotia and P.E.I bought an average of $3.50 worth of pot, while each non-Atlantic Canada bought an average of 58 cents worth of pot.
January 10, 2019 Highland Grow fulfilled its first purchase order with NSLC.
The initial shipment consists of three genetic varieties targeted specially for the local market. Later in January, Highland Grow intends to expand its “genetic and product offerings” – validating its “localized approach to its domestic market”.
“Biome and Highland Grow are preparing to meet the increase in demand and do our part to eliminate the current supply shortage in our home province,” stated Frank MacMaster, President of Highland Grow
“Biome Grow has been steadfast in its focus on a regional business strategy,” confirmed Malik, “We are now transitioning from development to a commercial cannabis enterprise.”
Full Disclosure: Biome is an Equity Guru marketing client and we own the stock.