LAS VEGAS and TORONTO, Oct. 13, 2020 /CNW/ - Flower One Holdings Inc. (the "Company") (CSE: FONE) (OTCQX: FLOOF) (FSE: F11), a leading cannabis cultivator, producer and innovator in Nevada, today announced preliminary third quarter revenue of $11.5 million surpassing its Q3 2020 revenue guidance range of between $9.8 million and $10.8 million. The Company continues to expect its Q3 2020 gross margin to be in line with its previous guidance of 30-35%. All amounts are expressed in U.S. dollars unless indicated otherwise.
Preliminary Q3 2020 Highlights:
- Preliminary year-to-date gross sales, thru the month ending September 30, 2020, of approximately $24.2 million;
- Preliminary gross sales, for the three months ending September 30, 2020, of approximately $11.5 million;
- Initial launch of Cookies and 22 Red further demonstrating the Company's ability and ongoing priority to transition its product revenue mix towards premium quality and higher gross margin sales; and
- Initial launch of Kiva's Blackberry Blitz Game On Camino gummies, a nod to the Las Vegas Raider's inaugural season in Nevada.
BDS Analytics recently reported that the August point-of-sales data for the cannabis market in Nevada experienced a 34% year-over-year growth. Nevada exhibited a surprisingly strong recovery despite limited tourism capacity. Year-to-date retail sales in the state of Nevada through August 31, 2020 reached $505.8 million, growing by 10% compared to the same period last year.
"These past few months have demonstrated Flower One's resilience and ability to reemerge through COVID-19 with momentum as evidenced by our strong, preliminary quarterly revenue" said Ken Villazor, President and Chief Executive Officer of Flower One. "The Company continues to increase its market penetration by providing our retail partners with a consistent supply of some of the highest-quality products and premium brands available in the Nevada market."
Subsequent to quarter end, the Company also announced the achievement of certain operational milestones including:
- The implementation of brand partner Lift Ticket's proprietary pre-roll technology and processes;
- The signing of Nature's Lab, an award-winning concentrate producer, as both a brand partner and SOP consultant to further increase and accelerate both quality and capabilities of Flower One's production lab; and
- The launch of previously announced brand partner Heavy Hitters with the shipment of the first order to retail.
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 operates a second facility in North Las Vegas with 25,000 square-feet of indoor cultivation and production capacity. 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 expected Q3 2020 revenue and gross margin; year-to-date sales as of September 30, 2020; the growth of the cannabis market in Nevada and the year-to-date sales as of August 31, 2020; the Company's expected market penetration; future production capabilities; the Company's leadership as a cannabis cultivator, producer, innovator and full-service brand fulfillment partner; the Company's ability to offer consistent, reliable and scalable fulfilment to a growing number of industry-leading brand partners; and the production of a wide range of products for the nation's top-performing 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 Annual Information Form dated June 23, 2020 (the "Annual Information Form") 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 Annual Information Form. 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 Annual Information Form.
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.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Flower One Holdings Inc.
For further information: Flower One, Ken Villazor, President and CEO, (416) 200-7641; Investor Relations, Canada, NATIONAL Public Relations, (416) 848-9835; United States, ADDO Investor Relations, (310) 829-5400, [email protected]