Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF) reported that its third-quarter revenue was $2.5 million, with sequential quarterly growth of 292% and representing seven weeks of sales from the greenhouse. The company also reported that net income totaled $15.7 million, which was mainly driven by the gain on the growth of biological assets of $18.4 million and a gain on the fair value of derivatives of $9.7 million.
“This was another milestone quarter for Flower One as, among other things, it was the first reporting period that included revenue contributions from our flagship greenhouse,” said President and Chief Executive Officer, Ken Villazor. “During the quarter, we completed and fully commissioned our 55,000 square foot production facility and welcomed three additional industry-leading brand partners to our growing portfolio. Our greenhouse and production facilities are now fully operational and yielding industry-leading analytics. This, combined with securing 15 brand partnerships, was accomplished within 19 months and places us in an exciting and truly unique path to profitability and positive cash flow in the first half of 2020.”
Flower One has made a big splash since its brand Old Pal became the leading flower brand in the state of Nevada within its first three months of sales. Old Pal and NLVO are among the top ten selling flower brands in Nevada.
Flower One said in a statement that it has now completed 15 harvests, which on average have produced a cultivation yield of 32 grams per square foot at an average harvested cash cost of $0.44 per gram. Flower One’s dry cannabis is now transitioned daily to its 55,000 square-foot production facility to generate a wide variety of the most in-demand cannabis products and brands from across the United States. The production facility currently consumes 3,000 to 5,000 pounds of biomass per week. In the last two months, the production lab has also begun producing an extensive product library of high-quality concentrates including shatter, batter, cookie crumble, wax/budder, THCA diamonds, THCA sugar and LPG high terpene sauces. The company’s first lots of concentrates will enter the market this quarter.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) has not yet generated cannabis-related revenues from its Canadian operations and is still in progress of completing the construction of Phase 1 of the Farnham Facility which is required to obtain the License. Still, it has funded ShopCBD.com Inc. with an $8 million private placement to support the launch of the online e-commerce platform for the sale and distribution, in the US, of hemp-based CBD products. It has over $26 million of available cash. The company reported net loss of $3,810,875 for the year ended August 31, 2019