UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)
              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended: June 30, 2001
                                                ----------------

             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

                        For the transition period from to

                        Commission file number 000-27959
                                               ----------

                             Laredo Investment Corp.
                            -------------------------
        (Exact name of small business issuer as specified in its charter)


          Nevada                                                77-0517964
--------------------------------------------------------------------------------
 (State or other jurisdiction                                  (IRS Employer
of incorporation or organization)                            Identification No.)

        Suite 11405 - 201A Street, Maple Ridge, British Columbia V2X 0Y3
                    (Address of principal executive offices)

                                 (604) 460-8440
                            Issuer's telephone number


         (Former name,  former  address and former fiscal year, if changed since
last report.)

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares  outstanding of each of the issuer's classes
of common equity,  as of the latest  practical  date:  June 30, 2001  32,200,000
                                                       -------------------------

         Transitional Small Business Disclosure Format (check one).
Yes      ;  No   X
    ----       ----



<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements



                         INDEPENDENT ACCOUNTANT'S REPORT



Laredo Investment Corp.


         We have reviewed the accompanying  balance sheets of Laredo  Investment
Corp. as of June 30, 2001 and December 31, 2000,  and the related  statements of
operations  three and six month periods  ended June 30, 2001 and 2000,  and cash
flows for the six month  periods ended June 30, 2001 and 2000.  These  financial
statements are the responsibility of the Company's management.

         We conducted our review in accordance with standards established by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statement taken as a whole.
Accordingly, we do not express such an opinion.

         Based on our  review,  we are not aware of any  material  modifications
that should be made to the accompanying  financial  statements for them to be in
conformity with generally accepted accounting principles.

                                                   Respectfully submitted



                                                   /s/ ROBISON, HILL & CO
                                                   Certified Public Accountants

Salt Lake City, Utah
August 8, 2001











<PAGE>

                             LAREDO INVESTMENT CORP.
                                 BALANCE SHEETS





                                                  June 30,          December 31,
                                                    2001                2000
                                                 -----------        -----------
ASSETS
Current Assets:
Cash and cash equivalents ................       $      --          $      --
Receivables ..............................           589,548            658,834
Inventory ................................           504,351            432,276
Prepaid expense ..........................             2,435              1,664
                                                 -----------        -----------

     Total Current Assets ................         1,096,334          1,092,774
                                                 -----------        -----------

Fixed Assets:
Manufacturing Equipment ..................           456,025            456,025
Office Equipment .........................            19,144             16,747
Furniture & Fixtures .....................             2,752              2,752
Leasehold improvements ...................            41,814             41,814
                                                 -----------        -----------
                                                     519,735            517,338
Less Accumulated Depreciation ............           (93,152)           (69,332)
                                                 -----------        -----------
                                                     426,583            448,006
                                                 -----------        -----------

Other Assets:
Intangible Assets, Net ...................            16,667             21,667
                                                 -----------        -----------

     TOTAL ASSETS ........................       $ 1,539,584        $ 1,562,447
                                                 ===========        ===========













<PAGE>

                             LAREDO INVESTMENT CORP.
                                 BALANCE SHEETS
                                   (Continued)




                                                      June 30,      December 31,
                                                        2001            2000
                                                     -----------    -----------
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities .........   $   599,923    $   496,267
Bank Overdraft ...................................        59,647        289,943
Bank Line ........................................        55,761         43,328
Short-Term Loans & Notes Payable .................       581,987        553,802
Related Party Loans ..............................        72,342         69,248
Current Portion Long-Term Debt ...................        21,687         20,951
                                                     -----------    -----------

     Total Current Liabilities ...................     1,391,347      1,473,539
                                                     -----------    -----------

Long-Term Debt ...................................        82,538         95,655
                                                     -----------    -----------

     Total Liabilities ...........................     1,473,885      1,569,194
                                                     -----------    -----------

STOCKHOLDERS EQUITY
Common Stock - $0.001 par value, 100,000,000
   shares authorized, 100 and 32,200,000 shares
   issued and outstanding at June 30, 2001 and ...        32,200         32,200
   December 31, 2000
Additional Paid-in Capital .......................        28,150         28,150
Currency Translation Adjustment ..................        11,586          5,155
Retained Earnings (Deficit) ......................        (6,237)       (72,252)
                                                     -----------    -----------

     Total Stockholders' Equity ..................        65,699         (6,747)
                                                     -----------    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .......   $ 1,539,584    $ 1,562,447
                                                     ===========    ===========












                 See accompanying notes and accountants' report.


<PAGE>

                             LAREDO INVESTMENT CORP.
                            STATEMENTS OF OPERATIONS



<TABLE>
<CAPTION>


                               For the three months ended   For the six months ended
                                          June 30,                   June 30,
                                 ------------------------    ------------------------
                                    2001         2000           2001           2000
                                 ---------    -----------    -----------    ---------
REVENUES
<S>                              <C>          <C>          <C>            <C>
Sales ........................   $ 747,409    $ 440,407    $ 1,313,410    $ 1,011,546
Cost of Sales ................     473,536      317,825        832,942        722,191
                                 ---------    -----------    -----------    ---------
Gross Margin .................     273,873      122,582        480,468        289,355

EXPENSES
   Selling & Marketing .......       6,152        7,138         22,988         18,441
   General & Administrative ..     180,854      150,958        326,016        246,608
                                 ---------    -----------    -----------    ---------
                                   187,006        158,096        349,004      265,049
                                 ---------    -----------    -----------    ---------

Net Income from Operations ...      86,867      (35,514)       131,464         24,306
                                 ---------    -----------    -----------    ---------

Other Income (Expense)
   Interest, Net .............     (18,857)     (16,284)       (42,801)       (25,927)
   Currency Exchange, Net ....     (17,852)     (25,665)       (22,648)       (25,665)
                                 ---------    -----------    -----------    ---------

Net Income Before Income Taxes      50,158      (77,463)        66,015        (27,286)
Income Tax Expense ...........        --          7,527           --             --
                                 ---------    -----------    -----------    ---------

NET INCOME ...................   $  50,158    $   (69,936)   $    66,015    $ (27,286)
                                 =========    ===========    ===========    =========

Basic and Diluted Earnings Per
Common Share .................   $    0.00    $      0.00    $      0.00    $    0.00
                                 =========    ===========    ===========    =========

Weighted Average Number of
Common Shares                   32,200,000     29,000,000     32,200,000   29,000,000
                                 =========    ===========    ===========    =========
</TABLE>








                 See accompanying notes and accountants' report.


<PAGE>

                             LAREDO INVESTMENT CORP.
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>

                                                          For the six months ended
                                                                   June 30,
                                                            ----------------------
                                                               2001         2000
                                                            ---------    ---------
Cash Flows From Operating Activities
<S>                                                         <C>          <C>
   Net income (loss) for the period .....................   $  66,015    $ (27,286)
Adjustments to reconcile net income (loss) to net cash
   Provided by (Used in) operating activities
     Currency translation adjustment ....................       6,430       (1,711)
     Depreciation and Amortization ......................      28,819       19,076
     Currency Exchange ..................................      22,648         --
     Decrease (Increase) in Receivables .................      69,287     (204,106)
     Decrease (Increase) in Inventory ...................     (72,074)    (125,508)
     (Increase) in Prepaid Expense ......................        (771)      (5,116)
     Increase in Accounts Payable & Accrued Liabilities .     115,225      195,899
     Increase (Decrease) in Bank Overdraft ..............    (230,297)        --
                                                            ---------    ---------
Net Cash Provided by (Used in) Operating Activities .....       5,282     (148,752)
                                                            ---------    ---------

Cash Flows From Investing Activities
   Purchase of property and equipment ...................      (2,397)    (224,587)
                                                            ---------    ---------
Net Cash Provided by Investing Activities ...............      (2,397)    (224,587)
                                                            ---------    ---------

Cash Flows From Financing Activities
   Proceeds/Payment on Bank Line ........................      12,433         --
   Payments on short-term notes payable .................        --        (26,497)
   Proceeds from short-term notes payable ...............        --        414,175
   Principle payment on long-term debt ..................     (15,318)     (14,339)
                                                            ---------    ---------

Net Cash Provided by Financing Activities ...............      (2,885)     373,339
                                                            ---------    ---------

Increase (Decrease) in Cash .............................        --           --
Cash at beginning of period .............................        --           --
                                                            ---------    ---------

Cash at End of Period ...................................   $    --      $    --
                                                            =========    =========


Supplemental Disclosure of Interest and Income Taxes Paid
   Interest paid during the period ......................   $   8,520    $   3,909
                                                            =========    =========
   Income taxes paid during the period ..................   $    --      $    --
                                                            =========    =========
</TABLE>

Supplemental Disclosure of Non-cash Investing and Financing Activities:     None



                 See accompanying notes and accountants' report.

<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         This summary of accounting  policies for Laredo  Investment  Corp.  and
Subsidiaries  ( the  "Company")  is  presented  to assist in  understanding  the
Company's  financial  statements.  The accounting  policies conform to generally
accepted  accounting  principles  and  have  been  consistently  applied  in the
preparation of the financial statements.

Interim Financial Statements

         The unaudited financial  statements as of June 30, 2001 and for the six
months then ended reflect, in the opinion of management,  all adjustments (which
include  only  normal  recurring  adjustments)  necessary  to  fairly  state the
financial  position  and results of  operations  for the six  months.  Operating
results for interim periods are not necessarily  indicative of the results which
can be expected for full years.

Organization and Basis of Presentation

         The Company was  incorporated  under the laws of the State of Nevada on
December 18, 1996. The Company ceased all operating activities during the period
from December 18, 1996 to July 9, 1999 and was  considered  dormant.  On July 9,
1999,  the Company  obtained a Certificate  of renewal from the State of Nevada.
From July 9, 1999 to January 21, 2000, the Company was in the development stage.

Acquisition of Subsidiaries

         On January 21, 2000, the Company entered into an Acquisition  Agreement
with GFR  Nutritionals,  Ltd., a British Columbia  corporation,  (GFR),  Richard
Pierce and Lucretia Schanfarber (the GFR Majority Shareholders) to acquire their
shares  representing 100% of the outstanding common stock of GFR in exchange for
19,000,000  newly issued shares of the Company's  restricted  common stock.  The
transaction has been recorded as a reverse merger.

         On June 21, 2000,  the Company  entered into an  Acquisition  Agreement
with Nutritionals (USA) Direct.Com, a Washington corporation,  (NDC), to acquire
100%  of the  outstanding  common  stock  of NDC in  exchange  for  $1,000.  The
transaction has been recorded as a purchase.

         On July 12, 2000,  the Company  entered into an  Acquisition  Agreement
with WST Web Search Technologies,  Inc., a Saskatchewan  corporation,  (WST), to
acquire 100% of the  outstanding  common stock of WST in exchange for 10,000,000
newly issued shares of the Company's  restricted  common stock.  The transaction
has been recorded as a purchase.

         On November 1, 2000, the Company entered into an Acquisition  Agreement
with Prohealth  Nutritionals  Ltd., a British  Columbia  corporation,  (PHN), to
acquire 100% of the outstanding  common stock of PHN in exchange for $0.01.  The
transaction has been recorded as a purchase.


<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)



NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Principles of Consolidation

         The  consolidated  financial  statements  for December 31, 2000 and the
year ended  include the accounts of Laredo  Investment  Corp.  and the following
wholly owned subsidiaries:

*        GFR Nutritionals, Ltd., a British Columbia corporation
*        Nutritionals(USA) Direct.com, a Washington corporation
*        WST Web Search Technologies, Inc., a Sasketchewan corporation
*        Prohealth Nutritionals Ltd.,  a British Columbia corporation

Nature of Business

         The Company  specializes in formulating,  blending,  encapsulating  and
packing  nutritional  products.  The  Company's  operations  are  located in the
province of British Columbia, Canada.

Cash and Cash Equivalents

         For purposes of the statement of cash flows, the Company  considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Inventories

         Raw materials  inventory is stated at a lower of weighted  average cost
and replacement value. Inventories of work in progress is stated at the lower of
weighted average cost and net realizable value.









<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Depreciation

         Fixed  assets  are stated at cost.  Depreciation  and  amortization  is
calculated  on a  straight-line  basis over the  estimated  useful  lives of the
assets as follows:


                     Asset                                     Rate
------------------------------------------------  ------------------------------

Manufacturing equipment                                                 10 years
Furniture and fixtures                                                   5 years
Office equipment                                                         5 years
Leasehold improvements                                     Lease Term or 5 years
Automobile                                                               3 years

         Maintenance  and  repairs are charged to  operations;  betterments  are
capitalized.  The  cost  of  property  sold  or  otherwise  disposed  of and the
accumulated  depreciation  thereon are eliminated  from the property and related
accumulated depreciation accounts, and any resulting gain or loss is credited or
charged to income.

         The Company has adopted the Financial  Accounting  Standards Board SFAS
No., 121,  "Accounting  for the  Impairment of Long-lived  Assets." SFAS No. 121
addresses  the  accounting  for (i)  impairment of  long-lived  assets,  certain
identified  intangibles and goodwill  related to assets to be held and used, and
(ii) long-live lived assets and certain identifiable  intangibles to be disposed
of.  SFAS No. 121  requires  that  long-lived  assets and  certain  identifiable
intangibles  be held and used by an entity be reviewed for  impairment  whenever
events or changes in circumstances indicate that the carrying amount of an asset
may not be  recoverable.  If the sum of the expected  future cash flows from the
used of the  asset  and its  eventual  disposition  (un-discounted  and  without
interest  charges) is less than the carrying  amount of the asset, an impairment
loss is recognized.

Revenue recognition

         Revenue is recognized  from sales of product at the time of shipment to
customers.






<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)



NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Foreign currency translation

         The  Company's  primary  functional  currency is the  Canadian  dollar.
Monetary  assets  and  liabilities  resulting  from  transactions  with  foreign
suppliers and customers are  translated at year-end  exchange rates while income
and expense  accounts are translated at average rates in effect during the year.
Gains and losses on translation are included in income.

Pervasiveness of Estimates

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  required  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

Concentrations of Credit Risk

         The  Company has no  significant  off-balance-sheet  concentrations  of
credit  risk such as foreign  exchange  contracts,  options  contracts  or other
foreign hedging arrangements.

Income Taxes

         The Company  accounts for income taxes under the provisions of SFAS No.
109, "Accounting for Income Taxes." SFAS No.109 requires recognition of deferred
income  tax  assets  and   liabilities   for  the  expected  future  income  tax
consequences,  based on enacted tax laws, of temporary  differences  between the
financial reporting and tax bases of assets and liabilities.

Reclassifications

         Certain   reclassifications  have  been  made  in  the  2000  financial
statements to conform with the 2001 presentation.




<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Earnings (Loss) per Share

         The  reconciliations  of the numerators and  denominators  of the basic
income (loss) per share computations are as follows:


                                                                     Per-Share
                                            Income       Shares        Amount
                                            ------       ------        ------
                                         (Numerator) (Denominator)

                                        For the three months ended June 30, 2001
Basic & Diluted Loss per Share
Income to common shareholders ........   $    50,158    32,200,000   $      --
                                         ===========   ===========   ===========

                                        For the three months ended June 30, 2000
Basic & Diluted Income per Share
Loss to common shareholders ..........   $   (69,936)   29,000,000   $      --
                                         ===========   ===========   ===========

                                          For the six months ended June 30, 2001
Basic & Diluted Loss per Share
Income to common shareholders ........   $    66,015    32,200,000   $      --
                                         ===========   ===========   ===========

                                          For the six months ended June 30, 2000
Basic & Diluted Income per Share
Loss to common shareholders ..........   $   (27,286)   29,000,000   $      --
                                         ===========   ===========   ===========

         The Company has no outstanding  dilutive  common stock  equivalents for
June 30, 2001 and 2000.

Stock Compensation for Non-Employees

         The  Company  accounts  for the fair  value of its  stock  compensation
grants for  non-employees  in accordance with FASB Statement 123. The fair value
of each grant is equal to the market price of the Company's stock on the date of
grant if an active  market  exists or at a value  determined  in an arms  length
negotiation between the Company and the non-employee.





<PAGE>
                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)


NOTE 2 - INVENTORY

         As of June 30, 2001 and December 31,  2000,  Inventory  consists of the
following:


                                                 2001                2000
                                          ------------------  ------------------
Raw materials                             $          504,351  $          414,010
Work in process                                            -              18,266
                                          ------------------  ------------------
Total Inventory                           $          504,351  $          432,276
                                          ==================  ==================

NOTE 3 - INCOME TAXES

         As  of  December  31,  2001,  the  Company  had a  net  operating  loss
carryforward for income tax reporting  purposes of  approximately  $110,000 that
may be offset against future taxable income through 2020. Current tax laws limit
the amount of loss  available to be offset  against future taxable income when a
substantial  change in  ownership  occurs.  Therefore,  the amount  available to
offset future taxable income may be limited. No tax benefit has been reported in
the financial statements, because the Company believes there is a 50% or greater
chance the  carry-forwards  will expire unused.  Accordingly,  the potential tax
benefits of the loss  carry-forwards are offset by a valuation  allowance of the
same amount.

NOTE 4 - RELATED PARTY TRANSACTIONS

         As of June 30, 2001 and December 31, 2000,  accrued  management fees of
GFR of approximately  $51,326 ($78,239  Canadian) and $40,096 ($60,151 Canadian)
were due to a major shareholder.

NOTE 5 - SHORT-TERM OBLIGATIONS


                                                           June 30, December 31,
                                                              2001       2000
                                                            --------   --------
Promissory note, repayable to related parties upon
   demand, including interest at 12% .....................  $ 72,342   $ 69,248
Working Capital Loans, repayable in stock or options upon
    demand including interest at 1% over prime (6.75%) ...   581,987    553,802
                                                            --------   --------

Total ....................................................  $654,329   $623,050
                                                            ========   ========

         The  Company  has a bank line of credit  with a total  amount  owing of
$55,761 and 43,328 as of June 30, 2001 and December 31, 2000 respectively.  This
line carries an interest rate of 9% a total available credit of $55,761 ($85,000
Canadian) at June 30, 2001.


<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)


NOTE 6 - LONG-TERM DEBT

<TABLE>
<CAPTION>

                                                                                  June 30,          December 31,
                                                                                    2001                2000
                                                                             ------------------  ------------------
TDBank Small  Business  loan,  repayable in monthly  instalments  $2,519 ($3,973
  Canadian),  including interest at 10.15%,  maturing March 15, 2004, secured by
  certain manufacturing
<S>                                                                          <C>                 <C>
  equipment of the Company                                                   $          104,225  $          116,606

Less current portion of long-term debt                                                   21,687              20,951
                                                                             ------------------  ------------------

                                                                             $           82,538  $           95,655
                                                                             ==================  ==================
</TABLE>

         Principal  payments  due on  long-term  debt for each of the five years
subsequent to December 31, 2000 and thereafter are as follows:


       Year ending:                Amount
---------------------------  ------------------

           2001              $           20,951
           2002                          23,179
           2003                          25,644
           2004                          28,371
           2005                          18,461
        Thereafter                            -
                             ------------------
           Total             $          116,606
                             ==================

NOTE 7 - ECONOMIC DEPENDENCE

         During 2001 and 2000,  the Company  sold  approximately  65% and 94% of
sales to Prairie  Naturals  Inc.  Future  operations  of the  Company  depend on
continuation of the manufacturing arrangement with Prairie Naturals Inc.






<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2001
                                   (Continued)


NOTE 8 - COMMITMENTS

         The Company has entered into a lease  agreement  for its  manufacturing
and office  facilities  and certain  manufacturing  equipment with the Company's
major  shareholder  and other  parties.  The rental  charges  are  approximately
$39,000   ($60,000   Canadian)   and  $28,556   ($43,530   Canadian)  per  year,
respectively.   The  leases  expire   December  31,  2001  and  June  30,  2004,
respectively.

         The minimum  future lease payments under these leases for the next five
years are:


         Year Ended December 31,                      Real Property    Equipment
-------------------------------------------------        -------        --------
                                             2001        $39,000        $ 14,278
                                             2002           --            28,556
                                             2003           --            28,556
                                             2004           --            28,556
                                             2005           --            14,278
Thereafter                                                  --              --
                                                         -------        --------

Total minimum future lease payments                      $39,000        $114,224
                                                         =======        ========

         The leases  generally  provides  that  insurance,  maintenance  and tax
expenses  are  obligations  of the  Company.  It is expected  that in the normal
course of business,  leases that expire will be renewed or replaced by leases on
other properties.

NOTE 9 - STOCK INCENTIVE PLAN

         The Board of Directors has authorized  and the Company has  established
the 2001  Incentive  and  Non-qualified  Stock Option  Plan.  Under the plan the
Company is authorized to issued up to 6,000,000  shares of the Company's  common
stock with such  exercise  price and vesting  periods as the Board of  Directors
Deems to be in the best interest of the Company.  As of June 30, 2001, no option
have been granted.







<PAGE>


Item 2.  Management's Discussion and Analysis or Plan of Operation.

General

This discussion should be read in conjunction with  Management's  Discussion and
Analysis of  Financial  Condition  and Results of  Operations  in the  Company's
annual report on Form 10-KSB for the year ended December 31, 2000.

Plan of Operations

The  Company  is  currently  working  on  securing   additional   private  label
manufacturing  contracts.  The key target for private  label sales are wholesale
distributors  of  health  food  nutrition  products.  Laredo  is  also  pursuing
opportunities for direct sales to consumers through the Internet.

Liquidity and Capital Resources

Laredo's working capital ratio was 0.79:1 as at June 30, 2001 compared to 0.74:1
at December 31, 2000. The key contributing factors for this increase is improved
cash  flow for the  quarter  and the  resulting  $230,297  decrease  in the bank
overdraft.

Current liabilities include a $72,342 promissory note payable to a party related
to a major  shareholder,  which bears interest at 12% annually.  These funds are
repayable on demand however, the request for repayment occurring at this time is
not expected.

Laredo has a small business loan  outstanding with a balance of $104,225 at June
30, 2001. This loan bears interest at 10.15% over a 5 year term.

Laredo anticipates  acquiring an additional $200,000 of manufacturing  equipment
in fiscal  2001 in order to meet  demands  for new private  label  sales.  Plant
renovations  costing  $30,000 are also  expected to be completed in fiscal 2001.
These  expenditures  will be  financed  through  private  placement  of  shares.
Increased  sales volumes will also  necessitate  hiring  additional  operations,
sales and administrative personnel.

Results of Operations

<TABLE>
<CAPTION>

                                               Three Months Ended                       Six Months Ended
                                                    June 30,                                June 30,
                                            2001                2000                2001                2000
                                      -----------------   -----------------  ------------------  ------------------

<S>                                   <C>                 <C>                <C>                 <C>
Sales                                 $         747,409   $         440,407  $        1,313,410  $        1,011,546
Cost of Sales                                   473,536             317,825             832,942             722,191
Gross Profit                                    273,873             122,582             480,468             289,355
Gross Profit Margin                               36.6%               27.8%               36.6%               28.6%
Expenses                                        187,006             158,096             349,004             265,049
Expenses as a % of sales                          25.0%               35.9%               26.6%               26.2%
</TABLE>

For the 3 months ended June 30, 2001,  sales were $307,002 higher than 2000. For
the 6 months  ended  June 30,  2001,  sales  were  $301,864  higher  than  2000.
Management expects sales to continue


<PAGE>

to grow during  2001.  During  2001 and 2000 65% and 94% of sales,  respectively
were to  Prairie  Naturals  Inc.,  a  wholesale  distributor  for  which  Laredo
manufactures  private  label  products.  Laredo  has  a  verbal  arrangement  to
manufacture,  on an  as-ordered  basis,  private  label  products  that  Prairie
Naturals Inc. distributes under the Prairie Naturals Inc. name.

Operating margins in 2001 were 36.6% of sales revenue, 8% higher than 2000. Cost
of Sales  includes the cost of raw materials used in  manufacturing,  production
labor  costs  and  an  applicable  share  of  overhead  expenses.   General  and
administrative  expenses  were 26.6% of sales in 2001,  0.4%  higher  than 2000.
Management attributes the decreases in costs of sales to manufacturing equipment
downtime  experienced during 2000. General and administrative cost increases are
due to increased professional fees and marketing costs.

Laredo anticipates  realizing economies of scale as production volumes increase.
Administrative  expenses include advertising expenses which will increase due to
Laredo's plan to expand marketing efforts.

Effect of Inflation

Laredo  does  not  anticipate  any  financial  impact,   whether  beneficial  or
detrimental, as a result of inflation.







<PAGE>

                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults Upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Security Holders.

         None.

Item 5.  Other Information

         None.

Item 6.  Exhibits and Reports on Form 8-K

         The Company did not file a report on Form 8-K during the past quarter.



<PAGE>
                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                             Laredo Investment Corp.
                             -----------------------
                                  (Registrant)





DATE:     August 13, 2001        By:    /s/ Richard Pierce
       -----------------------       -----------------------------
                                     Richard Pierce
                                     President, C.E.O., Director
                                    (Principal Executive and Accounting Officer)