- VINIA® sales orders grew 112% compared to Q1 2021 to reach USD 787k
- Reiterating guidance for year-on-year sales orders growth of 2.5-3.5X to reach USD 5M - 7M
- Started the transition of VINIA® production at new 20 tons/year facility enabling the scaling of VINIA® sales and conversion of current 2 tons/year facility to Cannabis
- Produced a unique Cannabis composition in large industrial scale Bioreactors enabling the commercialization and sales of Cannabis products in H2 2022
BioHarvest Sciences Inc. (CSE: BHSC) (OTC PINK: CNVCF) (FSE:8MV) ("BioHarvest" or "the Company") today announced Q1 2022 sales of its flagship VINIA® product reached USD 787k, representing 112% growth compared to the same quarter of last year.
BioHarvest also had a strong quarter in R&D execution, highlighted by a March 23 declaration of successful completion of its Cannabis R&D program with production of Cannabis biomass in large-scale industrial bioreactors - signaling the start of commercialization of the Cannabis product. BioHarvest is in the process of transitioning the current R&D license to a production license ahead of launching a unique Cannabis composition into the market in H2 2022.
"I am very proud of our Q1 results, which demonstrate another dimension of our capabilities," said CEO Ilan Sobel. "BioHarvest continues to validate its leadership in plant-based bio-technology."
The company managed the total VINIA sales orders in line with production constraints of its existing 2 ton/year facility and accordingly chose to reduce marketing spend in the US in order to avoid out-of-stock occurrences and customer dissatisfaction. The production capacity constraints are being alleviated by a fast transition to a new 20 ton/year facility - a transition which started successfully in March and will positively impact the H2 2022 scale-up of VINIA production and sales. BioHarvest is therefore reiterating its 2022 sales orders guidance of USD 5M -7M representing a 2.5-3.5X growth over 2021.
The careful management of the VINIA® inventory in the US resulted in Q1 sales order in the US (where pilot sales began in May 2021) reaching USD 335k (representing 2% growth over Q4 2021). The Israeli market delivered USD 452k (22% growth over Q1 2021 and a 10% decline from Q4 2022). Sales in Israel were heavily impacted in Q1 by an extraordinary outbreak of the Covid-19 pandemic in January and February, when approximately 25% of the population contracted the virus. March sales in Israel have significantly recovered and April sales so far support BioHarvest's growth trajectories and are in line with the provided guidance.
In early Q3 2022, BioHarvest expects VINIA ® inventory to reach levels that enable significant scaling of the business. US sales metrics in Q1 2022 continue to be very encouraging: VINIA ® has achieved a best-in class verified customer rating of 4.8 out of 5, demonstrating a high level of customer satisfaction, and subscription revenue in Q1 2022 increased 40% compared to Q4 2021.
The second half of the year marketing plan includes the addition of influencer endorsements, customer referral programs and affiliate programs as well as a focused approach addressing key lucrative market segments such as the Christian evangelical market.
"We were able to manage our sales growth despite inventory constraints and keep our overall customer satisfaction intact, and we enjoy fantastic growth prospects given the commencement of manufacturing at our new VINIA production facility," Sobel said. "I am equally excited by the completion of the Cannabis development program and the highly differentiated composition which we will be bringing to the market in H2 2022."
Q1 2022 Shareholder Update
BioHarvest invites all interested investors and media to our next Shareholders Update, to be held at 11 am PDT, April 7th, 2022. The online meeting will be hosted by CEO Ilan Sobel and will feature a live Q&A session. Free registration to the event is available here: https://app.livestorm.co/st-financial/q1-2022-bioharvest-sciences-shareholder-update?type=detailed.
About BioHarvest Sciences Inc.
BioHarvest Sciences Inc. (CSE: BHSC) is a fast-growing Biotech firm listed on the Canadian Securities Exchange. BioHarvest has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at industrial scale, without the need to grow the plant itself. This technology is economical, ensures consistency, and avoids the negative environmental impacts associated with traditional agriculture. BioHarvest is currently focused on nutraceuticals and the medicinal cannabis markets. Visit: www.bioharvest.com.
BioHarvest Sciences Inc.
Ilan Sobel, Chief Executive Officer
For further information, please contact:
Dave Ryan, VP Investor Relations & Director
Phone: 1 (604) 622-1186
Information set forth in this news release includes forward-looking statements that are based on management's current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There is no assurance that strong sales metrics experienced to date will result in future demand or that proposed additional marketing expenditures will result in increased sales. Markets for nutraceuticals are unpredictable and subject to changes in consumer tastes and trends as well as economic factors beyond our control. Delays and cost overruns may result in delays achieving our objectives obtaining market acceptance, and regulatory approvals for geographic expansion is subject to risk and cannot be guaranteed. There is no assurance that the Company sales revenue for 2022 will reach USD 5 to 7 million and there is no assurance that the Company cash flow breaking point will be achieved in 2023. There is no assurance of commercial availability of our Cannabis product in 2022 or that the Company achieves the conversion of the two tons VINIA® facility to Cannabis production in 2022. These things are subject to construction and approval delays and uncertainties that may be beyond the control of BioHarvest. Projected sales of Cannabis will require the Company to obtain production and/or export licensing which cannot be assured.
All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHSC does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosures.
Readers are cautioned that sales growth and revenue alone do not give an accurate picture of the financial position of the Company and should be read in the context of the Company's annual and quarterly financial statements.
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