SEATTLE, Dec. 07, 2018 (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. (BIO.CN) (FSE:60TA), a diversified licensed producer with five subsidiaries located in strategic markets throughout Canada. In early November, the company announced a landmark provincial supply agreement that could generate upwards of $100 million in annual revenue over the coming years in Newfoundland and Labrador’s nascent market.

Canada’s cannabis industry has charged forward full-steam following the legalization of recreational cannabis in October. While there was an initial flurry in provincial agreements, many licensed producers experienced a shortfall in their supply commitments. These dynamics encouraged many provinces to seek additional suppliers to help meet growing customer demand as Health Canada works through its backlog of applications.

In this article, we will take a look at the new supply agreement and why investors may want to take a closer look at the stock over the coming quarters.

New Supply Agreement

Biome Grow recently announced that its subsidiary, Back Home Medical Cannabis Corporation, entered into a three-year 24,000 kg production and supply agreement with the Province of Newfoundland and Labrador. Management expects that the agreement will generate close to $100 million in annual revenue beginning in 2020 at wholesale prices, while expenses could total around $50 million per year at those production levels.

The transaction is the single largest cannabis supply agreement in Atlantic Canada and one of the top five largest deals across the country by quantity. Under the terms of the agreement, Back Home is expected to produce Newfoundland and Labrador-grown cannabis in 2019 and operate a production facility in the province for a minimum of 20 years. It will supply up to 4,000 kg in the first year and 10,000 kg annually in the following two years.

In addition to the supply commitments, the company is eligible to recover up to $52 million through reduced remittances to the Newfoundland and Labrador Liquor Corporation. The company could recoup eligible construction costs through reduced remittances in exchange for new jobs and the construction of the new facility in the province. These reduced remittances could provide a boost to the company’s bottom line.

Ongoing Expansion

Biome Grow’s Back Home subsidiary is just one of five companies under its corporate umbrella. Great Lakes Cannabis is in the late stages of an ACMPR license with a presence in Ontario; Highland Grow is an existing licensed producer in Nova Scotia; Red Sands Craft Cannabis is located in Prince Edwards Island; and, Weed Virtual Retail is developing a new virtual reality technology platform focused on medical and recreational cannabis markets.

In addition to these Canadian operations, the company is actively working to expand its international footprint to further diversify its revenue. These activities could include exporting cannabis to key international markets around the world or acquiring companies in these markets to grow its operational footprint. The announcements surrounding these expansions could become a catalyst for the stock over the coming quarters.

The company recently listed its stock on the Frankfurt Stock Exchange under the symbol “6OTA” to further its goal of becoming a leader in the international medical cannabis markets. The FSE is one of the world’s largest securities exchanges with ~90 percent share turnover, while about half of its participants are from countries other than Germany. The move could open the door to investment from European and other nearby investors.

Looking Ahead

Biome Grow Inc. (BIO.CN) represents a compelling investment opportunity in the Canadian and global cannabis industry. With its new provincial supply agreement in place, the company is well positioned to significantly grow its revenue in 2020 and beyond, while simultaneously advancing projects across its other four subsidiaries.

For more information, visit the company’s website at www.biomegrow.com.

Please follow this link to read the full article:

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
206-369-7050
flane@cannabisfn.com