BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) reported that it banked a strong third quarter, fueled by increasing demand for its flagship VINIA product in Israel and the US.
The company said VINIA 3Q sales revenues were US$688,000, representing a 44% jump from 2Q and 1,198% growth year-over-year.
In Israel, BioHarvest generated record VINIA sales orders of US$452,000 during the quarter, a 10% increase versus the 2Q and 768% growth year-over-year. The company said sales orders in the ongoing US pilot program, which launched in May 2021, were US$236,000, representing 251% growth over the 2Q, with sales orders in September 2021 exceeding US$100,000.
"I am very proud of our Q3 results fueled by strong growth in VINIA sales in Israel and the U.S,” BioHarvest CEO Ilan Sobel said in a statement. “This increased demand, especially in our VINIA 'pilot phase' gives us confidence in building a scalable business in the U.S. This quarter's strong results and accomplishments further validates our vision, strategy and leadership position in plant-based bio-technology."
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VINIA is based on the skin of red grapes and contains a rich complex of polyphenols to bring significant cardiovascular benefits. It is the first and only product in the world containing Piceid Resveratrol at levels in each 400mg capsule that's equivalent to an average bottle of red wine, providing the benefits of red wine with the advantage of zero calories, zero sugar, and no alcohol.
BioHarvest said the continued adoption of VINIA in Israel and the high percentage (55%) of 3Q revenue from returning customers demonstrate the health benefits, efficacy, and overall loyalty to the product.
“With 90% of sales being subscription packages generating monthly recurring revenue, $80 average transaction spend and with 48% of customers being 'repeat' customers, we are confident that we can build a scalable, sustainable, and profitable business,” the company said in a statement.
“The metrics are a good predictor of future demand in the U.S. for VINIA. Supplying the anticipated demand growth requires our new manufacturing facility to be up and running before we add additional marketing layers and increase spending levels as part of the scaling of our U.S. business.” BioHarvest added.
To support the projected strong demand, primarily in the US, BioHarvest said it has made major progress towards the commissioning of a new 20 tons/year VINIA manufacturing facility in Israel.
The company also said it made substantial progress on its cannabis vertical in the 3Q, namely the successful development of the Amalgamated Trichome Coral Structure and the scaling of the production to mid-size bioreactors. It expects the first commercial availability of its cannabis product by the end of the second half of 2022.
BioHarvest also noted that it raised nearly US$8 million in financing during the quarter, providing the money to support the company's immediate goals
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