State of Nevada Confirms Cannabis Businesses May Continue Operations
TORONTO and LAS VEGAS, March 19, 2020 /CNW/ - Flower One Holdings Inc. (the "Company") (CSE: FONE) (OTCQX: FLOOF) (FSE: F11), a leading cannabis cultivator, producer and innovator in Nevada, today confirmed the State of Nevada is allowing all licensed cannabis establishments to remain open until further notice. This includes cultivation facilities, production facilities, distributors, independent testing facilities, retail stores and medical dispensaries. This confirmation follows Tuesday evening's announcement by Governor Steve Sisolak, instructing all non-essential businesses in Nevada to close effective noon PT yesterday, and for the next 30 days, in response to the state government's public health efforts to contain COVID-19 and ensure the safety of all Nevadans.
"In a time of unprecedented challenge and stress on businesses and people, we applaud Governor Sisolak and the State of Nevada for placing the safety of its citizens first, but also recognizing that there is an important segment of cannabis consumers who rely on the medicinal and therapeutic benefits of cannabis to maintain their overall health and well-being," said Ken Villazor, Flower One's President and CEO. "For these patients and consumers, maintaining the certainty and integrity of the cannabis supply chain is paramount. As the largest cannabis cultivator and producer in Nevada, Flower One takes very seriously the role the Company can play in protecting this supply chain, and we are working collaboratively with fellow Nevada cannabis stakeholders to ensure a wide range of safe, quality products remains available to all in need."
The Company continues to operate its 455,000 square foot flagship cultivation and production facility and is doing so in a manner which is compliant with the social distancing and public health guidelines issued by Nevada Health. Flower One also confirmed that as of the date of this announcement, the Company has observed a notable increase in demand of both its wholesale and finished packaged products, due in part to the Company's demonstrated capability to deliver a wide range of custom products to meet the pre-existing growing demand. This recent increase in consumer demand for cannabis products is consistent with trends in other state markets (source: Headset and Marijuana Business Daily).
To ensure business continuity and the safety of its employees, Flower One has proactively adopted the following public health and workflow adjustments:
- Hygiene protocols at all sites have been further enhanced beyond the Company's already stringent compliant food-safety standards, and are consistent with the public health guidelines outlined by the State of Nevada. Additional cleaning staff have been hired and deployed to all of our locations;
- Employees who can work remotely are being asked to do so. Remote work platforms are being deployed to further encourage working from home. All other employees – specifically those who manage live plants – are being selectively and carefully distributed across the Company's multiple North Las Vegas facilities;
- The Company has eliminated any overlay or contact between employees working on shift schedules and has undertaken an additional pre-cautionary disinfection process before the next set of employees can enter the greenhouse to begin their shift;
- In the absence of official testing, all employees are being screened for COVID-19 symptoms before entry onto each site. Any employees who have been sick recently, are expressing symptoms of cold or flu, have been exposed to someone who is ill, has a chronic illness as per CDC guidelines, or lives in a high risk household with elderly or chronically ill persons or traveled to restricted regions of the world, have been asked to remain home for the time being and to seek medical attention when appropriate;
- The Company has completed the reconfiguration of production workflows to increase the working distance between employees compliant with the pubic health guidelines regarding social distancing;
- Back-up operational teams are being staged at home in self isolation to ensure resources are healthy and available in the event of a positive determination on site; and
- All onsite dispensary activations have been temporarily suspended to assist Flower One's retail partners with managing their newly adjusted in-store customer flow and interaction protocols.
"We are confident that we have taken all reasonable, proactive and pre-cautionary measures at this time to protect the health and well-being of all our valued employees and the safety of our product," added Mr. Villazor. "I want to thank our entire team for their swift efforts in responding to these challenges. Our Nevada leadership has done an extraordinary job in seamlessly implementing all of these adjustments to our business. Their responsiveness and careful oversight in managing these matters speaks volumes to the quality, capabilities and professionalism of Flower One."
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; future demand of the Company's wholesale and finished, packaged products; 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.
SOURCE Flower One Holdings Inc.
For further information: Flower One: Ken Villazor, President and CEO, (416) 200-7641; Investor Relations & Media: Canada, NATIONAL Public Relations, (416) 848-9835; United States, ADDO Investor Relations, (310) 829-5400, [email protected]