MEDFORD, OR, March 5, 2019 /CNW/ - Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) ("Grown Rogue" or the "Company"), a vertically-integrated, multi-state cannabis company, with licenses and operations in Oregon, California, and now positioned for significant expansion in Michigan, reports more than 365% year-over-year revenue growth in preliminary results for its fiscal first quarter ending January 31, 2019.
For the first quarter of fiscal 2019 Grown Rogue revenue grew to more than US$800,000 (C$1.07 million), an increase of more than 365% from revenue of US$171,000 (C$227,700) in its fiscal first quarter ended January 31, 2018. Since the Company's first products began selling in late 2017, Grown Rogue has demonstrated meaningful sales traction in one of the world's most competitive cannabis markets.
Grown Rogue's award winning flower production (indoor and outdoor) represents approximately 55% of total sales with the remainder coming from concentrates (oil cartridges and extracts), pre-rolls, and a new edibles line launched in December of 2018 that is produced in partnership with an award winning chocolatier. Demand for Grown Rogue branded products that exceed current production capacity is supplemented with quality products from other qualified purveyors and manufacturers inside of Oregon. Grown Rogue products typically receive premium pricing at retail over the Oregon state average.
Current annual production capacity is approximately 5,000 lbs (2,300 kgs), but that number is forecast to more than triple to approximately 18,500 lbs (8,400kgs) by the end of fiscal year 2019 as Grown Rogue scales its cultivation operations in additional states.
"We entered fiscal 2019 with strength from the foundation we built in 2018," said Obie Strickler, CEO of Grown Rogue. "We have an effective and optimized team that has quickly scaled our manufacturing and distribution while maintaining award winning product quality. By the end of the year we were able to expand our brand and process to California with a 16,000 sq ft facility and establish partnerships for entry into Michigan. With our first recreational harvest in late 2017, we have been able to build our multi-state platform that is focused on creating the most innovative products, compliance with regulatory complexities, and scaled operations. We are now beginning the process of taking the future of cannabis into these new and exciting states."
In its first year of operation in the recreational adult-use market Grown Rogue established a strong reputation with its customers for consistent high-quality product. In an invitation only competition, among best in class cultivators, during its fiscal first quarter, Grown Rogue took first place for Highest Percentage THC, first place for Highest Percentage Terpenes, as well as third place in the Growers Choice overall. Green Leaf Lab, the nation's first accredited and licensed cannabis testing laboratory, confirmed that Grown Rogue's recent outdoor harvest included a strain that tested at 35.13% for THC, potentially breaking Oregon state records for outdoor cultivation.
In 2019 Grown Rogue is now expanding its award winning, quality products into California and Michigan. "In mid 2017, we had 3 licenses in one state and today we have 22 licenses in three states including a very exciting partnership in Michigan," added Jacques Habra, Chief Strategy Officer.
Inherent in this update are risk factors affecting volatility in the Company's business which are described in greater detail in its regulatory filings. This update is based on management's current beliefs and assumptions.
Financial results for the fiscal first quarter ended January 31, 2019 will be released during the last week of March, 2019.
About Grown Rogue
Grown Rogue International (CSE: GRIN | OTC: NVSIF) is a vertically-integrated, multi-state cannabis company curating innovative products to provide consumers with the right cannabis experience. Each of Grown Rogue's products and strains are categorized and marketed based on unique effects and designed for the full range of a consumers' lifestyle. Grown Rogue is scaling the vertically integrated model into multiple states by incorporating best-in-class manufacturing facilities and a proprietary distribution platform based on Microsoft technology. Grown Rogue's diverse cannabis product suite includes premium flower, patent-pending nitrogen sealed pre-rolls, oil and concentrates, and edibles featuring a partnership with world-renowned chocolatier, Jeff Shepherd.
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This press release contains statements which constitute "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company into Michigan and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company's Listing Statement available on www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.
Safe Harbor Statement:
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the Company's Form 20-F and 6-K filings with the Securities and Exchange Commission.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in the United States through its indirect operating subsidiaries. Local state laws where its subsidiaries operate 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 disclosed in the Company's Listing Statement filed on its issuer profile on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Grown Rogue
For further information: on Grown Rogue International please visit www.grownrogue.com or contact: Obie Strickler, Chief Executive Officer, [email protected]; Jacques Habra, Chief Strategy Officer, [email protected]; Investor Relations Desk, Inquiries, [email protected]