Flower One has applied for multiple Nevada based dispensary licenses as an effective way to better understand the cannabis consumers' preferences
TORONTO, Oct. 23, 2018 /CNW/ - Flower One Holdings Inc. (CSE: FONE) ("Flower One" or the "Company") is pleased to announce a property acquisition in North Las Vegas from an arm's length third party for total cash consideration of $1.15 million to support its future retail presence. The property is a freestanding former bank building offering important security attributes beneficial to the Company's retail strategy. The building is conveniently located within close proximity to the major retail corridor in North Las Vegas, the Cannery Hotel & Casino, the Company's 455,000 square foot flagship cultivation and production facility, which is the largest in Nevada, and NLV Organic Inc.'s fully operational 25,000 square foot cultivation and production facility.
The Company has submitted applications for multiple Recreational Marijuana Establishment Licenses within the State of Nevada; an opportunity only available to existing operational cannabis license holders. The Nevada's Department of Taxation anticipates awarding dispensary licenses to successful applicants in December 2018.
"Flower One's core business in Nevada will continue to focus on cannabis cultivation, processing and high-volume packaging," said Flower One's President and CEO, Ken Villazor. "However, we wanted to take full advantage of the rare opportunity to apply for these dispensary licenses given our eligibility. Should our applications prove successful, we view the opportunity to operate a state-licensed dispensary as an effective way to better understand the cannabis consumers' preferences in the highly evolving Las Vegas and Nevada market."
The potential dispensary licenses would be in addition to the Company's four existing licenses and the five additional licenses it expects to obtain through the acquisition of NLV Organics Inc., as announced on October 9, 2018, which is expected to close by the end of the year. This acquisition will include a fully operational 25,000 square foot cultivation and production facility with nine grow rooms capable of cultivating up to 4,500 plants per cycle. When combined with the Company's 80,000 plants per cycle, this combined 480,000 square feet of cultivation and production will result in annual cultivation of over 148,000 pounds.
About Nevada's Fast-Growing Cannabis Market
Medical cannabis use in Nevada was legalized on November 7, 2000 and recreational (adult) use was legalized on July 1, 2017. According to State officials, Nevada's fast-growing marijuana industry had revenue in its first fully legalized year totaling $529.9 million, including $424.9 million for recreational use1. The Nevada cannabis market is driven largely by the tourism market which is estimated to be 55 million visitors per year2 with approximately 42 million of them visiting Las Vegas according to the Las Vegas Convention and Visitors Authority3.
The Nevada's regulatory framework requires every 5 pounds of dry flower to be tested and approved by an independent, state-licensed laboratory before the product is cleared for retail or processing ensuring all products sold in the state provide consumers with a trusted, quality experience. This has allowed the demand for cannabis to steadily grow since being fully legalized. Pricing remains stable given the limited number of cannabis licenses issued by the State of Nevada. For the period of July to December 2018, the State's Department of Taxation has set the following Fair Market Value wholesale pricing:
- Dry Flower Buds = USD $2,799 per lb
- Dry Small Popcorn/Bud = USD $2,227 per lb
- Dry Trim/Shake = USD $798 per lb
Informational Purposes Only
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Flower One's securities to, or for the account or benefit of, persons in any jurisdiction.
About Flower One Holdings Inc. (CSE: FONE)
Home to the largest commercial scale greenhouse in the State of Nevada, Flower One aims to leverage the industry's leading agricultural technologies, utilizing innovative growing and sustainability practices to cultivate high-quality cannabis at scale for Nevada's growing cannabis market. The Company is licensed for medical marijuana cultivation and production, and recreational marijuana cultivation and production in the state of Nevada. Once canopied, targeted Q1 2019, the 455,000 square foot facility will be used for cannabis cultivation as well as the processing, production and high-volume packaging of dry flower, cannabis oils, concentrates and infused products.
Sustainably-cultivated cannabis at scale to meet Nevada's growing demand, Flower One is ready to grow for you.
Cautionary Note regarding Forward Looking Information
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Flower One's public documents. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements relating to the execution of the Company's strategy, new opportunities, future growth, future retail presence and potential benefits of retail strategy, potential capabilities of the cultivation and processing facility in Nevada, potential closing of the transaction with NLV Organics Inc., the ability of the Company to acquire further licenses, future demand for and pricing of cannabis, potential partnering opportunities with cannabis consumer brands and profitability of the cannabis market in the United States.
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 US 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.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
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 any intention or obligation to update or revise such information, 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: Investor Relations & Media, NATIONAL Equicom, 416.848.9835, email@example.com; Flower One Holdings Inc., Ken Villazor, President and CEO, 416.913.9642, firstname.lastname@example.org