Biome Grow Inc. (“Biome”, “company”) reported Q2-2019 financials, with revenue showing outsized growth. The company reported Q2-2019 revenue of $1.35 million, a QoQ increase of 296%. The company shipped approximately 170 kg of dried cannabis at an average selling price of $7.86 per gram versus 50 kg at an average selling price of $6.80 per gram in Q1-2019.
Deterioration in Gross Margin: Q2-2019 gross margin was 44.10%, a decrease from 60.02% in Q1-2019. The deterioration in gross margin was due to growth in the company’s lower-margin wholesale business.
Improvement in EBITDA: The company reported Q2-2019 EBITDA of -$0.75 million, an improvement from a Q1-2019 EBITDA of -$1.00 million. The improvement was primarily driven by strong revenue growth. The company expects to be EBITDA-positive on a run rate basis before the end of the year.
Licensed to Distribute Cannabis in Five Provinces: The company is now licensed to distribute cannabis in (1) Newfoundland and Labrador, (2) Nova Scotia, (3) Saskatchewan, (4) New Brunswick, and (5) Manitoba.
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