Flower One Holdings Inc. (the “Company”) (CSE: FONE) (OTCQX: FLOOF) (FSE: F11), a leading cannabis cultivator, producer and innovator in Nevada, today announced 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.