Biome Grow CEO Khurram Malik talks about the company’s long-term goals, vertical integration and the global medical cannabis market.
Biome Grow (CSE:BIO,OTCQB:BIOIF,FWB:6OTA) CEO Khurram Malik believes the company’s experience in building vertically integrated cannabis operations in Canada will be beneficial to expanding its international presence.
In the interview below, Malik talked about the advantages of being a small-cap company that can make large-cap deals without spending hundreds of millions of dollars in the process. One of the reasons for Biome’s recent success is its vertically integrated operations. He pointed out that cannabis companies typically become vertically integrated over time in order to be successful. Biome, on the other hand, ensured that they were covering all verticals from the start.
If the company can execute its business model, Malik believes that Biome could become a major cannabis company within the next two years.
Malik also provided an overview of the company’s long-term goals, which include becoming a global medical cannabis company. He believes that the real opportunity for Biome is in the global medical cannabis market. He points out that Canada is home to only 36 million people, and there are countries abroad that have twice the size of Canada’s population. Until Biome goes international, however, the company will be focusing on filling gaps in the Canadian market, such as creating cannabis brands that are unique to each province.
Below is a transcript of our interview with Biome Grow CEO Khurram Malik. It has been edited for clarity and brevity.
Investing News Network: Please provide an overview of Biome Grow.
Biome Grow CEO Khurram Malik: Biome is a Toronto-based cannabis company with domestic operations in Atlantic Canada. We’ll have an international focus later this year as this is where the bulk of our business will come from moving forward.
INN: How does Biome approach business as a small-cap company making large-cap deals?
KM: We’ve designed Biome to be very efficient despite having a small footprint, which allows us to secure large deals that generate large cash flow without spending hundreds of millions of dollars to secure these deals. We’re also regulatory specialists who have helped build some of the largest cannabis companies in Canada because we know how to navigate the supplier and offtake side of things.
INN: How important is vertical integration to Biome’s development?
KM: We’ve been vertically integrated since day one, which is unusual. Typically, most companies don’t do this at the start and pick it up as they grow. We’ve been working in this industry for a long time and have helped build vertically integrated platforms before. We know how to do these things simultaneously. We know where the pitfalls, pivot points and pain points are, and we can deal with them quickly and efficiently. If we do our job correctly, Biome could become a major company within the next two years.
INN: What is the focus of Biome’s long-term business strategy?
KM: Our long-term strategy is to export Canadian cannabis and brands overseas. We want to be known as a global medical cannabis company that has production, retail, regulatory and educational assets. Canada is our home base and where we started.
INN: How important is medical cannabis to Biome’s future?
KM: It’s very important. We prefer the medical market over the recreational market because the margins are thicker, there are greater barriers to entry and there are more innovations to be made. There’s also less competition and more sustainable control over your destiny. Additionally, the world is moving towards medical programs — not recreational. There are only 36 million people in Canada. It’s a great but small market and only a starting point for us. The real prize resides in global markets that are serving hundreds of millions of people.
INN: How does Biome plan to differentiate itself from similar cannabis companies?
KM: The Canadian cannabis market is in its early stages, and no one has established the right way of doing things. We’re trying to identify the gaps in the system and fill them. In Canada, that gap is provincial brands. In overseas markets, it’s licensed producers. Many large countries also need help in establishing their regulations and cannabis programs. We’re helping them define those regulations and programs based on what we’ve learned in Canada. We have an entry niche in Canada, and being a first mover in these large countries coming online is just the beginning for Biome.
This interview provides information which was sourced by the Investing News Network (INN) and approved by Biome Grow, in order to help investors learn more about the company. Biome Grow is a client of INN.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Biome Grow and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.