TORONTO, Ontario – March 17, 2020 (GLOBAL NEWSWIRE) Biome Grow Inc. (“Biome” or the “Company”) (CSE: BIO) (Frankfurt: 6OTA) (OTCQB: BIOIF), is announcing the termination of the previously announced Definitive Agreement (“Agreement”) among the Province of Newfoundland and Labrador (“NL”), Newfoundland and Labrador Liquor Corporation (“NLC”), and the Company, including its wholly owned subsidiary, The Back Home Medical Cannabis Corporation (“Back Home”).
On November 2, 2018 the Company and its subsidiary Back Home entered into a 24,000 kg three-year Definitive Agreement with the Province of NL and the NLC to produce and supply cannabis product(s) to the NL market. Through the Agreement, the Company also had access to 5 retail licenses.
Notwithstanding the termination of the Agreement, and despite enormous changes to the market, the Company remains committed to the province of NL and continues to actively explore various options in a collaborative manner with its stakeholders within the province. As one of the top selling suppliers of cannabis products to NL through its Nova Scotia subsidiary Highland Grow Inc., (“Highland Grow”), the Company has contributed and intends to continue to contribute to the communities and people of NL by way of quality, curated cannabis products; tax revenue for the provincial government; and meaningful employment opportunities.
“Understandably, we are all disappointed that things did not work out as originally planned. However, it’s evidently clear, the cannabis market and markets in general have changed significantly over the past year. It would be foolish to continue on a previously announced path when it’s clear the strategy no longer applies given the environment,” said Khurram Malik, CEO of Biome. “Despite recent announcements and reductions in capital expenditures, we continue to expand our distribution network, both geographically, into new markets, and interprovincially, via new retailers. Further, instead of spending tens of millions of dollars on facilities that no longer make sense, we’ve been able to realize tangible gains by focusing on operational efficiencies.”
The Company does not believe the termination of the Agreement will materially affect the Company’s business, operations or results.
Biome, through its wholly-owned subsidiary, Highland Grow, is licensed to cultivate, process, and sell cannabis.
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This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “ expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. Such forward-looking statements and information reflect management’s current beliefs and are based on assumptions made by and information currently available to Biome. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements, including changes to legislation; changes in cannabis research or the general public’s perception of cannabis; crop failure; labour disputes; increases in labour and/or construction costs; rising energy costs; an inability to access financing as needed; and general economic downturn. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements speak only as of the date on which they are made, and Biome, or any of its subsidiaries undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.