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| Biome Grow Delivers on Massive Cannabis Supply Contract-- CFN Media | ||
| By: Nasdaq / GlobeNewswire - 13 Feb 2019 | Back to overview list |
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SEATTLE, Feb. 13, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing Biome Grow Inc. (CSE: BIO) (OTCQB: BIOIF) (FFT: 6OTA) and its first shipments to Newfoundland and Labrador under a contract that is projected to generate about $100 million in annual revenue by 2020. Investors may want to take a closer look at the stock given these developments and its near-term path towards commercialization. Canada’s cannabis industry continues to face supply shortages following adult-use legalization last year. While new licensed producers are coming online every week and established companies are ramping up production, many experts believe that the supply shortage will persist for at least another year or two. These dynamics have created an opportunity for existing producers to increase revenue and market share. Click here to receive an investor presentation and corporate updates Cannabis Supply Shortage According to Deloitte, Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, driven by the legalization of adult-use cannabis. With the massive demand for product, many private and government-owned retailers have experienced trouble maintaining adequate supply. Quebec’s retailers operate only three days per week and New Brunswick’s provincial retailer laid off 60 workers due to a lack of supply. These problems could worsen when Ontario opens its first 25 brick-and-mortar stores at the beginning of April. Six months later, the legalization of edibles could further influence the supply and demand dynamic. There’s evidence that edibles will become even more popular than flower across Canada. After all, edibles surpassed flower demand in the United States back in 2017 and licensed producers will likely be drawn to the higher margin potential. Health Canada continues to approve new licensed producers, but many of these businesses require months to get to an operational state. Some industry experts believe that the supply shortage could last years, while others believe that the supply shortage could be resolved very soon thanks to existing licensed producers ramping up production. Either way, the industry continues to see a healthy amount of demand from consumers. Click here to receive an investor presentation and corporate updates Biome Begins Shipments Biome Grow recently announced the first shipments of finished product to Newfoundland and Labrador, which have both experienced significant supply shortages in recent months. The company’s Back Home Medical Cannabis Corporation, a wholly-owned subsidiary, signed a deal with Newfoundland and Labrador in November 2018, which was the largest supply agreement in Atlantic Canada and one of the top five nationwide by volume. Later this month, the company plans to send a second shipment of finished products with a focus on independent retail locations. Management began investing $500,000 over five years for research and development in the province, adding that the investment in the provincial ecosystem supports its commitment to the supply chain. The supply agreement is projected to gross about $100 million per year beginning next year. Biome Grow is also finalizing the site selection for five wholly-owned retail locations in the province, which are expected to open by this Spring. By capturing value across the entire supply chain, the company could generate more revenue at higher margins than it would be selling products wholesale to other retail outlets. The company could also improve brand loyalty by promoting its own products over competitors. Click here to receive an investor presentation and corporate updates Looking Ahead Biome Grow Inc. (CSE: BIO) (OTCQB: BIOIF) (FFT: 6OTA) is well positioned to capitalize on Canada’s cannabis supply shortage through its massive supply contract with Newfoundland and Labrador. With initial shipments underway, the company is starting to generate meaningful revenue as it works towards a roughly $100 million annual run rate over the next few years. For more information, visit the company’s website at www.biomegrow.com. Follow this link to read the full article: https://www.cannabisfn.com/biome-grow-deliv…-supply-contract/ About CFN Media CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed. Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8 Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com Disclaimer CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news. The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/ Frank Lane |
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