Flower One Holdings Inc. (the “Company” or “Flower One”) (CSE:FONE) (OTCQX:FLOOF) (FSE:F11), a leading cannabis cultivator, producer and innovator in Nevada, today announced that the Company continued to see strong monthly sales growth through the month of March. Monthly sales have grown 17%, on average, since the Company’s first full month of production from its greenhouse in September 2019. Please note that all figures in this release are in U.S. dollars.
Flower One also announced that an updated version of the Company’s investor presentation is now available at flowerone.com. The investor presentation incorporates the Company’s recent brand launches as well as unaudited preliminary financials through the first quarter of 2020.
Preliminary First Quarter 2020 Highlights
- Unaudited preliminary first quarter 2020 revenues of $8.9 million, near the mid-point of the Company’s guidance range of $8 million to $10 million
- March 2020 cannabis sales of $3.9 million, the Company’s highest recorded monthly sales to date and a sequential increase of 47% compared to February 2020
“Since our first sales of product out of our flagship greenhouse in the third quarter of 2019, Flower One has consistently delivered month-over-month growth,” said Ken Villazor, Flower One’s President and Chief Executive Officer. “We are pleased to see this sales momentum and are proud to be able to continue to support our brand and retail partners during these challenging times. Over the next two quarters, we expect to launch several leading cannabis brands and products into market that we anticipate will be catalysts for further revenue growth for our Company, including product launches for The Clear, Old Pal, Heavy Hitters and Cookies.”
Nevada dispensaries have moved swiftly to adapt to new state safety regulations which deem cannabis businesses as essential services, but require that all sales of product be conducted via delivery only. To assist with this implementation, the Nevada Department of Taxation unveiled a virtual inspection process to speedily authorize vehicles for cannabis delivery. Over 100 vehicles were approved in the first weekend of inspection. As of March 30th, 300 new vehicles and 59 dispensaries were approved for delivery, up from 38 dispensaries the week prior. Flower One is actively partnering with state dispensaries to ensure that they have sufficient, high-quality product to supply the Nevada resident population.
As previously reported, Flower One continues to operate its 455,000 square-foot flagship cultivation and production facility as well as its 25,000 square-foot indoor cultivation and commercial kitchen facility in manners which are compliant with the public health guidelines issued by Nevada Health. The safety of its employees remains Flower One’s top priority. For additional details on the COVID-19 hygiene, workplace safety and adjustment-to-workflow measures implemented by Flower One, please see the Company’s news release issued on March 19, 2020.
“We would like to acknowledge and thank our employees and all essential workers across Nevada who, along with healthcare professionals and first-responders, are today’s heroes in supporting and keeping us safe in these uncertain times,” Villazor added.
Flower One, in coordination with the Nevada Dispensary Association, has made a donation to Nevada Governor Steve Sisolak’s COVID-19 Response, Relief and Recovery Task Force in an effort to slow the spread of the coronavirus. The COVID-19 Response, Relief and Recovery Task Force is a private-public partnership leading Nevada’s overall recovery efforts.
About Flower One Holdings Inc.
Flower One is the largest cannabis cultivator, producer, and full-service brand fulfillment partner in the state of Nevada. By combining more than 20 years of greenhouse operational excellence with best-in-class cannabis operators, Flower One offers consistent, reliable, and scalable fulfillment to a growing number of industry-leading cannabis brands. Flower One’s flagship 400,000 square-foot greenhouse and 55,000 square-foot production facility is used for large scale cannabis cultivation, processing, and manufacturing. Flower One also owns and operates a second production facility in Las Vegas, with 25,000 square-feet of indoor cultivation and a commercial kitchen that will produce several of the nation’s top-performing edible brands. Flower One produces a wide range of products ranging from wholesale flower, full-spectrum oils, and distillates to finished consumer packaged goods including flower, pre-rolls, concentrates, edibles, and topicals for the top-performing brands in cannabis.
The Company’s common shares are traded on the Canadian Securities Exchange under the Company’s symbol “FONE”, in the United States on the OTCQX Best Market under the symbol “FLOOF” and on the Frankfurt Stock Exchange under the symbol “F11”. For more information, visit: https://flowerone.com.
Statements in this press release that are not statements of historical or current fact constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of United States securities laws (collectively, “forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from historical results or from any future actual results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “potential,” “should,” “may,” “will,” “plans,” “continue” or other similar expressions to be uncertain and forward-looking.
Forward-looking statements may include, without limitation, statements relating to the Company’s ability to remain open in response to the state government’s public health efforts to contain COVID-19, to continue to support its brand and retail partners, to launch a number of major brands and SKUs into the market, to ensure business continuity during the COVID-19 crisis, and to maintain sales growth and revenue momentum; future demand of the Company’s wholesale and finished, packaged products; the adaption of FONE and Nevada dispensaries to new safety regulations; the Company’s leadership as a cannabis cultivator, producer and full-service brand fulfillment partner; the Company’s ability to offer consistent, reliable and scalable fulfilment to its brand partners; and the production of the nation’s top-performing edibles brands.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplaces in the United States through its subsidiary Cana Nevada Corp. Local state laws where Cana Nevada Corp. operates permit such activities; however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s Shelf Prospectus dated September 27, 2019 and the Prospectus Supplement dated November 8, 2019 (collectively, the “Prospectus”) filed on its issuer profile on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement, the “Cautionary Statement regarding Forward-Looking Information” section contained in the Prospectus. All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company’s public securities filings with the Canadian securities commissions, including the Company’s Prospectus.
Although Flower One has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Flower One Holdings disclaims and does not undertake any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.