<PAGE>

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

 /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                            EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000
                                                 -------------

                                       OR

 / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                           EXCHANGE ACT OF 1934

 For the transition period from ____________________ to _______________________

                           Commission File No. 0-27959
                                               -------

                             LAREDO INVESTMENT CORP.
                             -----------------------
             (Exact name of registrant as specified in its charter)

              Nevada                                   77-0517964
              ------                                   ----------
(State or Other Jurisdiction of            (I.R.S. Employer Identification No.)
    Incorporation or Organization)

                      Suite 1450, 1075 West Georgia Street
                          Vancouver, BC, Canada V6B 3C9
                          -----------------------------
                    (Address of principal executive offices)

                                 (604) 460-8440
               --------------------------------------------------
              (Registrant's telephone number, including area code)

 ------------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)

         Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.

                               Yes  X       No
                                   ---         ---

                  Transitional small business disclosure format

                               Yes          No  X
                                   ---         ---


         As of August 14, 2000, there were 29,000,000 shares of common stock,
par value $.001 per share of the registrant issued and outstanding.


<PAGE>


                             LAREDO INVESTMENT CORP.

                         Quarterly Report on Form 10-QSB

                                Table of Contents

                                                                PAGE

PART I   FINANCIAL INFORMATION

Item 1.   Financial Statements                                    2

          Notes to Consolidated Financial Statements              6

Item 2.   Management's Discussion and Analysis                   13

PART II OTHER INFORMATION                                        15

Item 6.   Exhibits

SIGNATURES

INDEX TO EXHIBITS



<PAGE>



                             LAREDO INVESTMENT CORP.
                                 BALANCE SHEETS




                                               June 30,           December 31,
                                                2000                 1999
                                           -----------------   -----------------
ASSETS
Current Assets:
Cash and cash equivalents                  $              -    $              -
Receivables                                         396,445             192,339
Inventory                                           265,528             140,020
Prepaid expense                                       5,973                 857
                                           -----------------   -----------------

     Total Current Assets                           667,946             333,216
                                           -----------------   -----------------

Property and equipment:
Manufacturing Equipment                             426,801             206,998
Office Equipment                                     14,576              10,934
Furniture & Fixtures                                  2,387               1,245
Vehicles                                              5,026               5,026
Leasehold improvements                                3,521               3,521
                                           -----------------   -----------------
                                                    452,311             227,724
Less accumulated depreciation                       (48,000)            (28,924)
                                           -----------------   -----------------
                                                    404,311             198,800
                                           -----------------   -----------------

     Total Assets                          $      1,072,257    $        532,016
                                           =================   =================




                                       2

<PAGE>



                             LAREDO INVESTMENT CORP.
                                 BALANCE SHEETS
                                   (Continued)



                                                   June 30,        December 31,
                                                    2000              1999
                                               ---------------   ---------------
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities       $      445,758    $      267,393
Short-term notes payable                              434,881            33,346
Related party loans                                    65,758            63,481
Current portion long-term debt                         20,200            20,479
                                               ---------------   ---------------

     Total Current Liabilities                        966,597           384,699
                                               ---------------   ---------------

Long-term debt                                        107,940           120,600
                                               ---------------   ---------------

     Total Liabilities                              1,074,537           505,299
                                               ---------------   ---------------

STOCKHOLDERS EQUITY
Common Stock - $0.001 par value.
  100,000,000 shares authorized.
  15,000,000 issued and outstanding.                   15,000            15,000
Common Stock to be issued 14,000,000 shares            14,000            14,000
Additional paid-in capital                                  -                 -
Currency translation adjustment                          (362)            1,349
Retained deficit                                      (30,918)           (3,632)
                                               ---------------   ---------------

     Total Stockholders' Equity                        (2,280)           26,717
                                               ---------------   ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $    1,072,257    $      532,016
                                               ===============   ===============




                 See accompanying notes and accountants' report.


                                       3

<PAGE>



                             LAREDO INVESTMENT CORP.
                            STATEMENTS OF OPERATIONS



<TABLE>
<CAPTION>

                                           For the three months ended               For the six months ended
                                                    June 30,                                June 30,
                                      -------------------------------------  --------------------------------------
                                            2000                1999                2000                1999
                                      -----------------   -----------------  ------------------  ------------------
<S>                                 <C>                 <C>                 <C>                <C>

Revenues                              $         440,407   $         359,610  $        1,011,546  $          818,029
Cost of Revenues                                317,825             227,844             722,191             562,793
                                      -----------------   -----------------  ------------------  ------------------
Gross Margin                                    122,582             131,766             289,355             255,236

Expenses
   Selling & Marketing                            7,138               7,111              18,441               7,139
   General & Administrative                     150,958              71,932             246,608             157,867
                                      -----------------   -----------------  ------------------  ------------------
                                                158,096              79,043             265,049             165,006
                                      -----------------   -----------------  ------------------  ------------------

Net Loss from Operations                        (35,514)             52,723              24,306              90,230
                                      -----------------   -----------------  ------------------  ------------------

Other Income (Expense)
   Interest, Net                                (16,284)               (521)            (25,927)             (4,653)
   Currency Exchange, Net                       (25,665)                  -             (25,665)                  -
                                      -----------------   -----------------  ------------------  ------------------

Net Loss Before Income Taxes                    (77,463)             52,202             (27,286)             85,577
Income Tax Expense                                7,527              (2,623)                  -              (7,629)
                                      -----------------   -----------------  ------------------  ------------------

Net Loss                              $         (69,936)  $          49,579  $          (27,286) $           77,948
                                      =================   =================  ==================  ==================

Basic and Diluted Loss Per
Common Share                          $              -    $              -   $               -   $               -
                                      =================   =================  ==================  ==================

Weighted Average Number of
Common Shares                                29,000,000          25,000,000          29,000,000          25,000,000
                                      =================   =================  ==================  ==================
</TABLE>


                 See accompanying notes and accountants' report.


                                       4

<PAGE>



                             LAREDO INVESTMENT CORP.
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>

                                                                                    For the six months ended
                                                                                            June 30,
                                                                             --------------------------------------
                                                                                    2000                1999
                                                                             ------------------  ------------------
<S>                                                                      <C>                       <C>
Cash Flows From Operating Activities
   Net loss for the period                                                   $          (27,286) $           77,948
Adjustments to reconcile net loss to net cash
   Provided by operating activities
     Currency translation adjustment                                                     (1,711)                  -
     Depreciation and Amortization                                                       19,076              11,283
     Decrease (Increase) in Receivables                                                (204,106)            (95,555)
     Decrease (Increase) in inventory                                                  (125,508)             90,410
     Decrease (Increase) in prepaid expense                                              (5,116)                  -
     Increase (Decrease) in accounts payable & accrued liabilities                      195,899             (57,706)
                                                                             ------------------  ------------------
Net Cash Provided by (Used in) Operating Activities                                    (148,752)             26,380
                                                                             ------------------  ------------------

Cash Flows From Investing Activities
   Purchase of property and equipment                                                  (224,587)             (6,016)
                                                                             ------------------  ------------------
Net Cash Provided by Investing Activities                                              (224,587)             (6,016)
                                                                             ------------------  ------------------

Cash Flows From Financing Activities
   Payments on short-term notes payable                                                 (26,497)            (13,520)
   Proceeds from short-term notes payable                                               414,175                   -
   Principle payment on long-term debt                                                  (14,339)             (6,844)
                                                                             ------------------  ------------------

Net Cash Provided by Financing Activities                                               373,339             (20,364)
                                                                             ------------------  ------------------

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                                           $            3,909  $            4,653
                                                                             ==================  ==================
   Income taxes paid during the period                                       $                -  $                -
                                                                             ==================  ==================
</TABLE>
Supplemental Disclosure of Non-cash Investing
 and Financing Activities:     None




                 See accompanying notes and accountants' report.


                                       5

<PAGE>



                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     This summary of accounting policies for Laredo Investment Corp. ( 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.

     The unaudited financial statements as of June 30, 2000 and for the three
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 three 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.

     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.

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.


                                       6

<PAGE>



                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000
                                   (Continued)


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

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.

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                 Term of lease
               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 (undiscounted and without
interest charges) is less than the carrying amount of the asset, an impairment
loss is recognized.


                                       7

<PAGE>



                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000
                                   (Continued)

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

Revenue recognition

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

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.

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 1999 financial statements
to conform with the 2000 presentation.

                                       8

<PAGE>



                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000
                                   (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
loss per share computations are as follows:

<TABLE>
<CAPTION>
                                                                                             Per-Share
                                                      Income              Shares               Amount
                                                      ------              ------               ------
                                                   (Numerator)         (Denominator)

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

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

                                                         For the three months ended June 30, 1999
                                                         ----------------------------------------
Basic & Diluted Loss per Share
Loss to common shareholders                     $          49,579           25,000,000   $               -
                                                ==================  ===================  ==================

                                                          For the six months ended June 30, 1999
                                                          --------------------------------------
Basic & Diluted Loss per Share
Loss to common shareholders                     $          77,948           25,000,000   $               -
                                                ==================  ===================  ==================
</TABLE>


     The effect of outstanding common stock equivalents are anti-dilutive for
June 30, 2000 and 1999 and are thus not considered.

NOTE 2 - INVENTORY

     As of June 30, 2000 and December 31, 1999, Inventory consists of the
following:

                                                 2000                1999
                                          ------------------  ------------------
          Raw materials                   $          198,282  $          106,760
          Work in process                             67,246              33,260
                                          ------------------  ------------------
          Total Inventory                 $          265,528  $          140,020
                                          ==================  ==================


                                       9

<PAGE>



                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000
                                   (Continued)


NOTE 3 - RELATED PARTY TRANSACTIONS

     As of June 30, 2000, accrued management fees of GFR of approximately
$54,000 ($78,000 Canadian) are due to a major shareholder. As at June 30, 2000,
accounts payable includes approximately $84,000 ($122,000 Canadian) owing to the
Company's major shareholders.

NOTE 4 - PROMISSORY NOTES

<TABLE>
<CAPTION>
                                                                    June 30,      December 31,
                                                                      2000            1999
                                                               ---------------   ---------------
<S>                                                          <C>                <C>
Promissory note, repayable to related parties upon
   demand, including interest at 12%                           $        65,758   $        63,481
Promissory note, repayable upon demand including
    interest at 1% over prime (9.5%)                                   434,881                 -
                                                               ---------------   ---------------

Total                                                          $       500,639   $        63,481
                                                               ===============   ===============
</TABLE>


NOTE 5 - LONG-TERM DEBT
<TABLE>
<CAPTION>
                                                                    June 30,      December 31,
                                                                      2000            1999
                                                               ---------------   ---------------
<S>                                                          <C>                <C>
TDBank Small Business loan, repayable
  in monthly instalments of $3,972,
  including interest at 10.15%,
  maturing March 15, 2004, secured by certain
  manufacturing equipment of the Company                       $       128,140   $       141,079

Less current portion of long-term debt                                  20,200            20,479
                                                               ---------------   ---------------

                                                               $       107,940   $       120,600
                                                               ===============   ===============
</TABLE>



                                      10

<PAGE>


                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000
                                   (Continued)

NOTE 5 - LONG-TERM DEBT (Continued)

     Principal payments due on long-term debt for each of the five years
subsequent to June 30, 2000 and thereafter are as follows:

                 Year ending:                   Amount

          ---------------------------     ------------------

                     2000                 $           10,385
                     2001                             21,247
                     2002                             23,506
                     2003                             26,006
                     2004                             28,772
                  Thereafter                          18,224
                                          ------------------
                     Total                $          128,140
                                          ==================

NOTE 6 - ECONOMIC DEPENDENCE

     During 2000, the Company sold approximately $951,000 or 94% of sales to
Prairie Naturals Inc. Future operations of the Company depend on continuation of
the manufacturing arrangement with Prairie Naturals Inc.

NOTE 7 - COMMITMENTS

     The Company has entered into a lease agreement for its manufacturing and
office facilities with the Company's major shareholder and other parties. The
rental charges are approximately $41,000 ($60,000 Canadian) per year. The lease
expires December 31, 2001.

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

             Year Ended                                Real Property
            December 31,
          ---------------                             ---------------
             2000                                     $        41,000
             2001                                              41,000
             2002                                                   -
             2003                                                   -
             2004                                                   -
             Thereafter                                             -
                                                      ---------------

             Total minimum future lease payments      $        82,000
                                                      ===============

                                      11

<PAGE>

                             LAREDO INVESTMENT CORP.
                          NOTES TO FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2000
                                   (Continued)


NOTE 7 - COMMITMENTS (Continued)

     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 8 - STOCK SPLIT

     On May 6, 1999 the Board of Directors authorized a 1,000 to 1 stock split,
changed the authorized number of shares to 100,000,000 shares and the par value
to $.001 for the Company's common stock. As a result of the split, 999,000
shares were issued. All references in the accompanying financial statements to
the number of common shares and per-share amounts for 1999 have been restated to
reflect the stock split.

     On November 15, 1999 the majority shareholder returned 400,000 shares to
the Company. On the same day the Company's Board of Directors authorized a 25 to
1 stock split of the remaining 600,000 shares of the Company's $.001 par value
common stock. As a result of the split, 14,400,000 shares were issued, and
Paid-In Capital was reduced by $14,400. All references in the accompanying
financial statements to the number of common shares and per-share amounts for
1999 have been restated to reflect the stock split.

                                      12



<PAGE>




Safe Harbor Statement

         Except for the historical information contained in this report, certain
statements, including information set forth under Item 2 "Management's
Discussion and Analysis" constitute or may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Act"). Laredo Investment Corp. (the "Company") desires to avail
itself of certain "safe harbor" provisions of the Act and is therefore including
this special note to enable the Company to do so. Forward-looking statements
included in this Form 10-QSB or hereafter included in other publicly available
documents filed with the Securities and Exchange Commission, reports to the
Company's stockholders and other publicly available statements issued or
released by the Company involve known and unknown risks, uncertainties, and
other factors which could cause the Company's actual results, performance
(financial or operating) or achievements to differ from the future results,
performance (financial or operating) achievements expressed or implied by such
forward-looking statement.

PART II  OTHER INFORMATION

Item 2.  Management's Discussion and Analysis.

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, 1999.

         The Company was incorporated in Nevada on December 18, 1996. From that
time up until January 21, 2000, the Company has generally remained dormant. On
January 21, 2000, the Company acquired GFR Nutritionals, Ltd., a British
Columbia corporation ("GFR"), from its sole shareholders, Richard Pierce and
Lucretia Schanfarber, for consideration consisting of 19,000,000 shares of the
Company. Since the acquisition, the Company has adopted the business of GFR,
which consists of manufacturing nutritional supplement products such as Devil's
Claw Root Extract, St. John's Wort Extract, Kava Kava, Ginkgo Biloba Leaf
Extract, Coenzyme Q10, Ginseng, Echinacea, Grapeseed Extract, Vitamin C,
L-Glutamine and Garlic for sale to wholesale distributors. The Company's primary
goal during the next fiscal year is to expand its marketing efforts to secure
additional private label contracts with wholesale distributors of nutritional
products as well as to expand retail distribution both through direct sales to
established market channels such as health food retail stores, department and
grocery stores, health practitioners as well as to market its products directly
to consumers via the Internet.

Results of Operations

         Six months ended June 30, 1999 compared to six months ended June 30,
2000

         Currently, most of the Company's revenues are derived from its verbal
arrangement with Prairie Naturals Inc. ("PNI") to manufacture, on an
as-ordered-basis, private label products that Prairie Naturals Inc. distributes
under its name. The Company also has an exclusive written contract to
manufacture one product that PNI distributes for a third party private label.

                                       13
<PAGE>

         As the Company expands its marketing efforts to wholesale distributors,
other than PNI, and directly to consumers, it anticipates realizing economies of
scale from the resulting production volume increases. However, selling, general
and administrative expenses which include advertising expenses are also expected
to increase.

         Operating margins in the second quarter 2000 were 28% of sales revenue
compared to 37% for second quarter 1999. Cost of Sales includes the cost of raw
materials used in manufacturing, labor costs and an applicable share of overhead
expenses. General and administrative expenses were approximately 34% of sales in
second quarter 2000 as compared to 20% for second quarter 1999. This increase
was due to the addition of more employees including a production manager and
quality control personnel in order to further expand the Company's production
capacity.

Liquidity and Capital Resources

         The Company requires working capital principally to fund its current
operations for which it has relied on short-term and long-term borrowings.

         The Company used cash in operating activities for the six months ended
June 30, 2000 totaling $148,752 and operating activities provided cash for the
six-month period ended June 30, 1999 totalling $26,380. In addition, the Company
invested cash in property and equipment for the six months ended June 30, 2000
and 1999 totaling $224,587 and $6,016, respectively.

         The Company's working capital ratio was 0.86:1 at December 31, 1999 and
decreased to 0.69:1 as at June 30, 2000. This decrease was due, in part, to a
shutdown on the main production machine during the month of April for
maintenance repairs. Total inventory balances, which includes both work in
process and raw materials at June 30, 2000, were $265,528. Generally, the
Company has been shipping goods immediately upon completion. As business volume
increases, the Company will be required to keep finished goods inventory on
hand.

         Current liabilities include a $65,758 promissory note payable to
related parties which bears interest at 12% annually. Although these funds are
repayable on demand, the Company does not anticipate that a request for
repayment will be made at this time. Also included in current liabilities is a
promissory note aggregating $434,881 payable to third parties, which bears
interest at a rate of 1% plus prime which rate is currently 9.5%. These funds
are repayable on demand however, the Company has the option to prepay these
funds by issuing options to purchase shares of the Company's common stock or by
issuing restricted shares of the Company's stock to the third party lenders. The
Company also has a small business loan outstanding issued by TD Bank with a
balance of approximately $128,140 as at June 30, 2000. This loan bears interest
at a rate of 10.15% over a 5 year term. Only the principal portion of this loan
which is repayable in the next fiscal year has been included in the working
capital calculations.

         The Company acquired an additional $220,000 of manufacturing equipment
for the six month period ended June 30, 2000 and anticipates acquiring an
additional $25,000 in fiscal 2000 in order to further expand its production
capacity. Plant renovations costing $12,000 are also expected to be


                                       14
<PAGE>

completed in fiscal 2000. These expenditures will be financed from existing
assets. Increased sales volumes will also necessitate hiring additional
operations, sales and administrative personnel.

         Investing activities have used cash of approximately $224,587 for the
three months ended June 30, 2000. Investing activities primarily represent
purchases of manufacturing equipment and office equipment.

         The Company expects future development and expansion will be financed
through cash flow from operations and other forms of financing such as the sale
of additional equity and debt securities, capital leases and other credit
facilities. There are no assurances that such financing will be available on
terms acceptable or favorable to the Company.

Item 6.  Exhibits and Reports on Form 8-K.

         (a)      Exhibit 27.1           Financial Data Schedule

         (b) During the period commencing last quarter of the period covered by
this report to date, the following reports on Form 8-K were filed by the
Registrant:

<TABLE>
<CAPTION>

DATE OF REPORT            ITEM REPORTED                         DESCRIPTION OF ITEM
--------------            -------------                         -------------------
<S>                       <C>                                   <C>
May 2, 2000               Item 1.  Change in Control of         The Company entered into an Acquisition Agreement
                          Registrant                            with GFR Nutritionals, Ltd., a British Columbia
                                                                corporation, ("GFR"), to acquire 100% of the
                                                                outstanding common stock of GFR in exchange
                                                                for 19,000,000 shares of the Company's common
                                                                stock.
</TABLE>






                                                      15
<PAGE>





                                                  SIGNATURES

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

                                                   LAREDO INVESTMENT CORP.

Dated:   August 14, 2000                  By:   /s/ Richard Pierce
                                                -----------------------------
                                                  Richard Pierce
                                                  President

                                          By   /s/ Mark Casavant
                                               ------------------------------
                                                 Mark Casavant
                                                 Chief Financial Officer