quoted from FONE annual information form In the future, Flower One intends to leverage its experience in Nevada by replicating its production and cultivation capabilities in other states with legal cannabis markets.
Production and Services Flower One will use its leading technology and knowledge of high-density agriculture to accelerate its scale-up of cannabis cultivation to a commercial, high-volume capacity. The Corporation’s forecasted levels of dry flower cultivation are 140,000 pounds per year, including up to 100,000 pounds of triple-A flower, 10,000 pounds of small popcorn buds and 30,000 pounds of trim. The 55,000 square-foot production facility will provide for the development and production of a diverse range of product derivatives ranging from pre-rolls, oils, concentrates, distillates, edibles and topicals.
The Corporation estimates that the annual processing capacity of the production facility, once at full capacity, will be up to 420,000 pounds of cannabis, with the ability to produce up to 20,000 - 8 - litres of distillate, 50,000 litres of concentrates, 60,000 pounds of wax, 12,000,000 auto-fill packages and 61,000,000 pre-rolls. These products will be sold in both wholesale and packaged formats.
The composition of finished products will evolve over time as the largely recreational market in Nevada grows and consumer knowledge of the health and benefits of these product derivatives increases. Flower One plans to have four channels for supplying Nevada’s retail cannabis market and post-harvest production market:
1. Direct Selling to Nevada’s Dispensaries. Flower One plans to sell its own branded products, along with those of third-parties that have contracted with Flower One as described below, directly to licensed dispensaries in the State of Nevada.
2. Wholesale Market. Flower One plans to sell unbranded, wholesale products to existing production and retail license holders who are seeking to reformulate and package under their own brands. Flower One plans to sell a broad range of wholesale product offerings including trim, oil, distillates and dry flower.
3. Contract Cultivation, Production and Packaging. It is not permissible for cannabis grown and processed by state-sanctioned license holders to cross state boundaries, so all cannabis legally sold in Nevada must be grown in Nevada. As the cannabis market continues to rapidly evolve and mature, various brands established in other states will seek to enter the Nevada market. Flower One’s planned commercial-scale volume of cultivation, production and packaging will provide the expertise, consistent ability to supply and standard operating procedures to enter private label and white label production agreements to meet this anticipated demands of the Nevada market.
4. Supplying Corporation \ Owned Retail. The State of Nevada has announced a process to allow existing license holders in the state the opportunity to apply for additional retail licenses.
The Corporation has applied for several retail licenses throughout the State of Nevada and NDOT anticipates advising applicants if they were successful and issuing retail licenses in December 2018.