Flower One Says Revenue Is Better Than Expected

Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF) announced preliminary third-quarter revenue of $11.5 million surpassing its Q3 2020 revenue guidance range of $9.8 million and $10.8 million. The company did not state whether it had any profits or net losses. Flower One said it continues to expect its third-quarter gross margin to be in line with its previous guidance of 30-35%.

“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.”

In addition to the third-quarter figures, Flower One said that its year-to-date gross sales, thru the month ending September, were roughly $24.2 million. The company also noted that its initial launch of Cookies and 22 Red demonstrated its ability and ongoing priority to transition its product revenue mix towards premium quality and higher gross margin sales. Kiva’s Blackberry Blitz Game On Camino gummies were also launched as a nod to the Las Vegas Raider’s inaugural season in Nevada.

$39 Million Loan

Last week the company announced that it has entered into a term debt loan agreement for $39 million with Subversive Real Estate Acquisition REIT LP. As part of the Loan Agreement, Flower One granted Subversive REIT a two-year option to pursue a sale-leaseback transaction to purchase Flower One’s 455,000 square-foot cannabis cultivation and production facility in North Las Vegas, Nevada for up to $80 million, and subsequently lease it back to the company. Proceeds of the loan will be used to replace an existing $30 million term loan that would have been due in June 2021, as well as to fund general corporate purposes and other Company debt obligations.

“Subversive REIT is positioned to be a leader in the U.S. cannabis real estate market,” said Ken Villazor, President and Chief Executive Officer of Flower One. “We are excited to have this opportunity to build a strategic partnership with such a deeply connected and highly-knowledgeable cannabis real estate partner that is poised to benefit Flower One both in the near- and long-term as we continue to enhance our operations in Nevada.”

Following the end of the quarter Flower One said that it has taken the following actions:

  • 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.

 

Debra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 10 hours

So much happening today. The is like an overflowing bowl of information. It’s a big

@GreenMarketRpt – 17 hours

We will be at the on Friday. Here are 5 things not to miss this week.

@GreenMarketRpt – 19 hours

A net loss of $ 73,809,205, and net cash used in operations was $25,950,800 over last nine months

Back to Top

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Monday morning.

We respect your privacy. See our privacy policy.