Flower One expects Q3 revenue of $11.5-million 2020-10-13 08:17 ET - News Release
Mr. Ken Villazor reports
FLOWER ONE ANNOUNCES PRELIMINARY Q3 2020 REVENUE OF $11.5 MILLION, EXCEEDING GUIDANCE FOR THE QUARTER
Flower One Holdings Inc. had 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.