BioHarvest Introduces a Breakthrough Technology That Dramatically Improves Cannabis Industry Economics

BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: VNVCF) is well-known for its ability to scale up trace botanical elements. For example, its flagship VINIA capsules contain the same amount of piceid resveratrol as an entire bottle of red wine with no calories, sugar, or alcohol.

That’s because BioHarvest, via its technology, can increase piceid resveratrol levels by a factor of 100X greater than what is found in a red grape. Moreover, it’s 25x more soluble than regular resveratrol.

Over the past four years, the company has been working on applying a similar technique to scale up the production of cannabinoids. And on October 25, 2022, it announced initial results that surprised everyone.

Cannabis Industry Struggles

The global cannabis industry will grow from $25 billion in 2021 to nearly $150 billion by 2031, according to Allied Market Research, representing a 20.1% compound annual growth rate. While top-line revenues continue to grow, many cannabis companies are running into problems scaling up production and achieving the profit margins shareholder’s demand.

The problem boils down to four factors:

• Competition is driving increased price compression.
• Production costs are on the rise, thanks to inflation.
• Higher interest rates are increasing the cost of capital.
• Sustainability concerns are leading to more regulation.

Canopy Growth Corp has significantly underperformed the S&P 500 index. Source: Barchart.com

As a result, many cannabis stocks have moved sharply lower over the past 52 weeks. For example, Canopy Growth Corp. (NYSE: CGC), an industry bellwether, has seen its stock fall more than 70%. Meanwhile, CBD companies like Charlotte’s Web Holdings Inc. (TO: CWEB) haven’t fared much better, with its share price cut in half over the same period.

Breakthrough Yields Impressive Results

BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: VNVCF) specializes in growing plant cell cultures in bioreactors. Rather than growing an entire plant, the company selects specific plant cells that produce the desired active ingredients and inserts them into a solid medium. The resulting “trichomes” have 100x to 200x the density of plants.

On October 25, the company announced that its Bio CELLicitation platform successfully took cells from a hemp plant flower and converted them into an extremely valuable set of cannabinoids. In fact, the CBDV and THCV contents alone could be game-changing, as these compounds sell for $35,000 to $50,000 per kilogram in the open market.

BioHarvest Sciences significantly improved the yields of rare cannabinoids using its innovative platform. Source: BioHarvest Sciences

Overcoming the Industry’s Challenges

BioHarvest Science’s Bio CELLicitation platform helps overcome the four core challenges facing the cannabis industry. And the company is already in discussions with potential industry partners to leverage its technology to unlock the potential for full-spectrum hemp to address various medical conditions and recreational markets.

“These achievements by BioHarvest in naturally eliciting important minor Cannabinoids to significant biologically active levels, combined with high levels of major Cannabinoids, all produced with high level of consistency represent a major breakthrough towards the development of efficient Cannabis-based botanical drugs,” said Dr. Christopher D’Adamo, Director of the Center for Integrated Medicine at the University of Maryland School of Medicine, in the press release announcing the breakthrough.

The Bio CELLicitation platform addresses each of the industry four core challenges in a huge way:

• Price Competition – Bio CELLicitation produces unique cannabinoid concentrations with unparalleled consistency at a much lower COGS which could have a significant ability to revolutionize and democratize Cannabis in the medical field.
• Increasing Growth Costs – Creating these cannabinoids with Bio CELLicitation lowers the cost of goods sold by between 60% and 70% versus the average cost of indoor cultivation, dramatically reducing costs and improving profit margins.
• Higher Cost of Capital – The Bio CELLicitation process translates to an estimated seven times lower capital expenditures required per ton of biomass versus average required for indoor cultivation, helping scale up production without the cost.
• Increased Regulation – Bio CELLicitation when compared to the average indoor cultivation, improves water productivity by 54x and electrical productivity by 8x, while reducing carbon intensity by 8x, helping allay sustainability concerns.

Looking Ahead

BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: VNVCF) is well-known for its ability to scale up and produce the critical bioactive compounds found in plants which are so important for our overall health and wellness.

By applying these techniques to the cannabis industry, the company has made it possible to produce at scale with superior economics, a unique full spectrum cannabis containing record high levels of cannabinoids including major cannabinoids like CBD and THC as well as significantly increasing levels of minor cannabinoids such as CBDV and THCV, all working synergistically together, which could disrupt the $50+ billion cannabis and hemp industry.

If you’d like to learn more, visit the company’s website, or complete the form below to download the investor presentation.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.