While other cannabis companies have complained of a tight capital environment, Nevada-based Flower One Holdings Inc. OTC:FLOOF has successfully closed its previously announced non-brokered private placement. The company said it raised C$10.9 million or $7.8 million. This is higher than the previously planned offering of $7.5 million. Flower One said it plans to use the proceeds for general corporate and working capital purposes.
“This Private Placement garnered strong demand from existing shareholders as well as new, strategic investors from multiple countries and signifies an expansion of our capital markets profile internationally,” said Ken Villazor, President and CEO of Flower One. “The high level of interest in our offering truly speaks to our differentiated market strategy and proven ability to execute and scale our operations to become a market leader in the U.S. cannabis industry.”
Flower One is the largest cannabis cultivator, producer, and full-service brand fulfillment partner in the state of Nevada. 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 owns and operates a second production facility in Las Vegas, with 25,000 square feet of indoor cultivation and a commercial kitchen that will produce several of the nation’s top-performing edible brands.
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.
In connection with the Private Placement, Flower One issued a total of 29,599,025 units comprised of one common share in the capital of the company and one-half common share purchase warrant.
Last month, the company announced its preliminary unaudited first-quarter revenues with for 2020 of $8.9 million, near the mid-point of the company’s guidance range of $8 million to $10 million. March 2020 cannabis sales of $3.9 million, the company’s highest recorded monthly sales to date, and a sequential increase of 47% compared to February 2020.
The company still has not formally filed its 2019 and fourth-quarter 2019 earnings. Flower One said it expects to file the Annual Filings after market close on May 7, 2020. Flower One will also host a conference call on May 8, 2020, at 8:30 a.m. ET to discuss its financial results and review recent and upcoming milestones.
“Since our first sales of product out of our flagship greenhouse in the third quarter of 2019, Flower One has consistently delivered month-over-month growth,” said Ken Villazor, Flower One’s President and Chief Executive Officer. “We are pleased to see this sales momentum and are proud to be able to continue to support our brand and retail partners during these challenging times. Over the next two quarters, we expect to launch several leading cannabis brands and products into the market that we anticipate will be catalysts for further revenue growth for our Company, including product launches for The Clear, Old Pal, Heavy Hitters, and Cookies.”