BioHarvest Sciences Inc.'s CNVCF BHSC (FSE:8MV) sales of its flagship VINIA product in Q1 2022 reached $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 the 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.
"I am very proud of our Q1 results, which demonstrate another dimension of our capabilities," stated CEO Ilan Sobel. "BioHarvest continues to validate its leadership in plant-based biotechnology."
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 spending in the U.S. 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 that started successfully in March and will positively impact the H2 2022 scale-up of VINIA production and sales.
The careful management of the VINIA inventory in the U.S. resulted in Q1 sales orders in the US reaching $335,000. The Israeli market delivered $452,000.
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 to 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 continued. "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."
BioHarvest will host a shareholders update online meeting at 11 am PDT, April 7th, 2022.
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