Flower One Reports Third Quarter 2019 Financial Results
Company’s compound weekly sales growth rate continues at 15% with 5 of 15 brands launched in the Nevada market to date
TORONTO, Nov. 26, 2019 /PRNewswire/ – Flower One Holdings Inc. (the “Company”) (CSE: FONE) (OTCQX: FLOOF), a leading cannabis cultivator, producer and innovator in Nevada, today reported its financial and operating results for the third quarter ended September 30, 2019. All amounts are expressed in U.S. dollars unless indicated otherwise.
Third Quarter Highlights
Commenced initial flower sales from Nevada’s largest commercial greenhouse in August 2019; Launched Nevada’s largest cannabis extraction and production facility in September 2019 – a 55,000 square foot facility adjacent and adjoined to the Company’s 400,000 square foot greenhouse; Revenue was $2.5 million, with sequential quarterly growth of 292% and representing seven weeks of sales from the greenhouse; Net income totaled $15.7 million; Gross margin before fair value adjustments of $0.6 million, or 25%; Entered three new brand partnerships – plus three more subsequent to quarter end bringing the total number of brand partners managed by the Company to 15;
Additional Highlights Subsequent to Quarter End
Including the fourth quarter-to-date, revenue has grown at a weekly compounded rate of 15% since the Company began selling product from its greenhouse in August 2019; The Company recently surpassed $1 million in weekly orders for the first time; To date, the greenhouse has generated industry-leading cultivation performance with yields of 192 grams per square foot on an annualized basis at a cash cost per gram harvested of $0.44; Since the beginning of the fourth quarter, Old Pal and NLVO are amongst the top ten selling flower brands in Nevada, with Old Pal holding four of the top ten flower SKUs in Nevada; The Company announced it has launched the