Shares of BioHarvest Sciences, which uses its proprietary botanical synthesis technology to develop therapeutic solutions, advanced close to 12% on the Canadian Securities Exchange (CSE) and almost 14% over the counter in New York on Thursday, November 7. The gains followed the company’s announcement that Nasdaq had approved its listing on its primary burse. BioHarvest’s management believes the listing will broaden its potential shareholder base, increase liquidity, and enhance its public profile compared to the over-the-counter market.
Details
BioHarvest stock rose around 12% on the CSE to CAD7.70 per share ($5.50 at the current exchange rate) on Thursday. In the over-the-counter market in New York, it gained about 14%, closing at $5.60 per share.
Earlier in the day, the company announced that Nasdaq had approved its listing on the Nasdaq Global Market, with trading expected to commence on Tuesday, November 12, with the ticker BHST. Until the close of trading on Monday, November 11, BioHarvest shares will remain available on the U.S. OTCQB market. The Canadian listing will remain in place after the Nasdaq debut.
“This [Nasdaq] listing will serve to expand our potential shareholder base, improve liquidity and elevate our public profile in the industry – ultimately helping to enhance long-term shareholder value creation,” said BioHarvest Sciences Chair Zaki Rakib, as quoted in the company’s press release.
The over-the-counter market is generally considered less efficient due to lower trading volumes, potential transaction delays, and restrictions on broker-dealers, as noted in a recent SEC filing by DayDayCook (DDC), a maker of ready-made Asian meals. DDC is currently working to avoid being delisted from the New York Stock Exchange, noting that being relegated to the over-the-counter market could limit liquidity.
About BioHarvest Sciences
BioHarvest Sciences calls itself a pioneer in botanical synthesis technology, which allows it to cultivate plant cells without growing the plants themselves. Its has two major segments: It produces its own products and conducts contract research for other companies. The company’s first product, VINIA, is a nutraceutical (dietary supplement) containing red grape cells that, according to BioHarvest, boosts blood flow to the heart, brain, and tissues, thereby enhancing mental and physical performance. VINIA is available in the U.S. via subscription.
BioHarvest’s product lineup also includes coffee pods, and the company announced plans in its preliminary 2024 third-quarter earnings report to launch a tea line in November. It reported revenue of $6.5 million, doubling the 2023 third-quarter top line. Looking ahead, it anticipates at least a 60% year-over-year revenue increase in the fourth quarter to $7.2 million.
BioHarvest began working on contracts for other firms in early 2024. As of late August, it had two active agreements — one with a “Nasdaq-listed pharmaceutical company” and the other with a “major player in the food nutrition and ingredients industry.” For the latter, BioHarvest is developing molecules to be used in “the multi-billion dollar non-nutritive sweetener industry.” It expects to generate revenue not only in the form of payments for this but also through royalties on future commercial sales.
