Flower One Holdings reports Q3 results and cannabis industry-leading yields per square foot and cash cost per gram harvested
Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF), a leading cannabis cultivator, producer and innovator in Nevada, reported 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
Additional Highlights Subsequent to Quarter End
"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."
Following the inaugural harvest from the Company's flagship Nevada greenhouse in June 2019, Flower One 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.
Third Quarter 2019 Financial Results
Revenue for the third quarter was $2.5 million, an increase of 292% on a sequential quarterly basis. The increase is primarily from the beginning of flower sales out of the Company's greenhouse in August 2019 and cannabis derived products out of the greenhouse in September 2019. In addition, current period revenue represents NLVO sales and revenues from the initial launch of five of the 15 brand partners. Revenue for the third quarter includes $1.8 million in revenue generated from the flagship greenhouse and $696 thousand in revenue generated from the assets of NLVO. Subsequent to quarter end, sales from Flower One's current operations are tracking strong with a compound weekly growth rate of 15% since the first official sale out of its flagship greenhouse facility in August 2019.
Cost of goods sold was $1.9 million for the quarter, inclusive of production costs expensed and the cost of inventory sold. The increase over prior quarter is a result of flower and cannabis derived product sales beginning during the three-months ended September 30, 2019 out of the NLV Greenhouse. As sales out of the NLV Greenhouse continue to increase each period, the Company expects the per gram cost of goods sold to decrease as the sales mix continues to shift towards low-cost product out of the NLV Greenhouse as compared to the higher cost of indoor grown product out of the Neeham Property. The Neeham Property will continue to be used to test various strains from its genetic library and to grow select, premium craft cannabis. As the Company moves out of the initial start-up phase and into steady-state operations, we expect the per gram costs of goods sold to decrease further as the operation gains efficiencies.
General and administrative expenses for the quarter totaled $4.4 million, including $640 thousand for accounting and legal fees, $794 thousand in wages and salaries, $559 thousand in consulting costs and $677 thousand in rent and security costs.
Net income for the quarter was $15.7 million, which was mainly driven by the gain on growth of biological assets of $18.4 million and a gain on fair value of derivatives of $9.7 million.
Gross margin amounted to $616 thousand, or 25%. As sales out of the greenhouse continue to expand and our sales-mix shifts towards this lower-cost product, we expect cost of sales on a per-gram basis to decrease. This, coupled with the upcoming brand launches, is expected to drive an increase in margins as we move through Q4 and into 2020.
Net income was partially offset by $3.7 million in finance expenses, $1.1 million in share-based compensation, $3.9 million in deferred income tax expense related to the fair value gain on growth of biological assets, and the aforementioned G&A expenses.
Flower One's 2019 full third quarter financial statements and management's discussion and analysis will be issued and filed on SEDAR at www.sedar.com on November 26, 2019 and available on the same day on Flower One's website at www.flowerone.com/investors/financial-reports.
Brand Partner Updates
To date, Flower One launched sales of five brand partners through its flagship greenhouse in Nevada. The Company is on track to launch an additional two brands in the remaining part of the fourth quarter of 2019. Together these brand launches, along with a number of additional launches in early 2020, will serve as a significant growth catalyst for the Company.
One of Flower One's first brand partners, Old Pal, is now a leading flower brand in the state of Nevada within its first three months of sales. In fact, Old Pal and NLVO are among the top ten selling flower brands in Nevada. These achievements are confirmation of Flower One's scale and ability to rapidly leverage the full potential of its recently completed greenhouse and production lab.
Subsequent to the quarter end, Flower One announced three new brand partnerships including:
Recent Financing Activities
On September 27, 2019, Flower One announced the filing of a base shelf prospectus with securities regulators in Canada. The shelf prospectus will allow the Company to offer up to $250 million worth of common shares, debt securities, subscription receipts, units, warrants, or any combination thereof, from time-to-time during the 25-month period after the applicable Canadian securities regulatory authorities have issued a receipt for the final prospectus. Subsequent to the quarter end, on October 22, 2019, Flower One filed and obtained receipt for a final short form base shelf prospectus.
On November 15, 2019, Flower One successfully completed a public offering of 20,850 convertible debenture units for aggregate gross proceeds of CAD$20.85 million. Each unit consists of a 9.5% unsecured convertible debenture and 666 common share purchase warrants exercisable at a price of CAD$1.55 for a period of 36 months. Flower One intends to use the net proceeds from the offering to advance and support the continued launch of its Brand Partners' products into the Nevada market and working capital and general corporate purposes.
On November 18, 2019, the Company successfully closed the sale-leaseback agreement with Treehouse Real Estate Investment Trust, Inc. ("Treehouse") for its 25,000 square-foot indoor cultivation and production facility in North Las Vegas. As part of that agreement, Treehouse will purchase the property from the Flower One for $20 million. Flower One will lease the property back for a period of 20 years, with two 10-year extension options.
Given Flower One's strong revenue performance to-date, the Company is forecasting that it will achieve approximately $9 million in revenue by its fiscal year end of December 31, 2019. This figure represents less than six months from the active selling of product out of the Company's flagship greenhouse. Also, due to its strong results in Nevada, the Company is projecting to reach positive cash flow during the first-half of 2020.
Flower One continues to lay the foundation for long-term success including potential geographic expansion. Given the current market conditions and the relatively high cost of capital, the Company now believes that it is in the best interests of all our stakeholders to pause on its initial entry plans into California and plans to reassess the opportunity sometime in 2020. In the meantime, the Company remains focused on delivering continued executional, operational, and financial excellence in Nevada by leveraging scale, maximizing yields, being a low-cost producer, and driving the success of its brand partners.
About Flower One Holdings Inc.
Flower One is the largest cannabis cultivator, producer and full-service brand fulfilment partner in the state of Nevada. Flower One's fully operational flagship 400,000 square-foot greenhouse and 55,000 square-foot production facility is used for cannabis cultivation, processing, production and manufacturing of dry flower, pre-rolls, cannabis oils, distillates, concentrates, edibles, topicals and infused products. The Company also operates a 25,000 square-foot indoor cultivation and production facility in North Las Vegas, with nine grow rooms, and a commercial kitchen that will produce several of the industry's top performing edible brands.
Leveraging its scale and more than 20 years of greenhouse operational excellence, Flower One offers consistent, reliable, high-volume, and just-in-time fulfilment to a growing number of established cannabis brands. The Company is fully licensed for both recreational and medical marijuana cultivation and production in the state of Nevada.
The Company's common shares are traded on the Canadian Securities Exchange under the Company's symbol "FONE" and in the United States on the OTCQX Best Market under the symbol "FLOOF". For more information, visit: https://flowerone.com.
Source: Flower One Holdings
Operational and financial strength, plus another successful debt offering, places Company in solid position to execute on national expansion plan
Trulieve Cannabis Corp. ("Trulieve" or the "Company") (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States, today announced its financial results for the third quarter of 2019 ended September 30, 2019. Unless otherwise stated, all currency is expressed in U.S. dollars.
Third Quarter 2019 Financial & Operational Highlights
Recent Highlights & Developments
"Our third quarter results reflect our continued customer loyalty, growth, and leadership position. Trulieve's strong brand, wide-ranging access to stores, and authentic customer experience have resonated with our customers and patients," stated Kim Rivers, Trulieve CEO. "The third quarter was also successful in further strengthening our position in our existing markets as well as preparing for new market entry. We continue to build operational efficiencies and financial discipline to ensure a solid foundation, cash reserves, and the right tools at our disposal to expand our footprint. Looking ahead, this is an exciting time as we execute on our strategic vision to be one of the top performing cannabis companies in North America."
The Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company's profile on SEDAR at www.sedar.com and on its website at https://www.trulieve.com/investors.
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Reflecting continued leverage of scale and financial discipline, the Company is reaffirming guidance for full year 2019 and long-term outlook. Guidance for 2019 and 2020 can be found in our first quarter press release available at: https://www.newswire.ca/news-releases/trulieve-reports-another-quarter-of-record-revenue-898676764.html
Source: Trulieve Cannabis
VIVO Cannabis Inc. (TSX-V: VIVO, OTCQX: VVCIF) ("VIVO" or the "Company") today announced it expects to commence first harvest at its Kimmetts facility in Napanee, Ontario in the fourth quarter of 2019. VIVO also unveiled its 2020 plans for the facility, which include an accelerated planting schedule and the contemplated use of five additional acres of land adjacent to the existing airhouses. The announcements were made during VIVO's analyst and investor day held in Napanee, where the Company showcased its airhouse technology, extraction programs and progress towards achieving EU GMP certification. A presentation from the analyst and investor day can be found on the Company's website at www.vivocannabis.com.
"The fact that we expect to be able to commence first harvest within our stated timelines and budget speaks to the early success of the airhouses and the talent of our Napanee team," said Barry Fishman, Chief Executive Officer of VIVO. "Kimmetts is expected to play a significant role in our strategy of bringing new value-added products to market, as well as contributing to our existing collection of premium brands, including Beacon Medical, Fireside, Canna Farms and Lumina."
VIVO intends to commence planting activities in the spring of 2020 within the existing four airhouses at the Kimmetts facility, which will be several months earlier than it began planting in 2019 following receipt of its licence for the facility from Health Canada. These additional months of growth are expected to result in much larger plants in the airhouses compared to 2019.
In conjunction with VIVO's 2020 plans for the Kimmetts facility, the Company is contemplating the use of an additional five acres of land, situated immediately adjacent to the four existing airhouses, for outdoor cultivation.
"Given the success of the airhouses, we can confidently proceed with an earlier planting schedule and consider an expanded footprint of our operation," said Mr. Fishman. "This is especially important in the current landscape given Canada's imminent entry into the edibles, beverages, concentrates and topicals market - a market where we expect to play an important role."
VIVO is the only Canadian licensed producer employing the innovative airhouse technology used at the Kimmetts facility, which has been incorporated in several US states to produce high-quality cannabis at low cost without the significant capital investment required to build traditional greenhouses or indoor grows.
About VIVO Cannabis™
VIVO, based in Napanee, Ontario, is recognized for trusted, high-quality products and services. It holds production and sales licences from Health Canada and operates world-class indoor cultivation facilities with proprietary plant-growing technology. VIVO has a collection of premium brands targeting unique customer segments, including Beacon Medical™, FIRESIDE™, Canna Farms™ and Lumina™. In August 2018, VIVO acquired Canna Farms, a premium cannabis company based in Hope, British Columbia. Canna Farms was B.C.'s first Licensed Producer and has several years of craft cultivation experience and expertise, as well as a significant patient base and positive cash flow. The Company is significantly expanding its production capacity and pursuing partnership and product development opportunities domestically, as well as in select international markets, including Germany and Australia. VIVO also operates Harvest Medicine, a patient-centric and highly scalable network of specialty medical cannabis clinics as well as a free telemedicine service. VIVO has a healthy balance sheet and is well-positioned to accelerate its growth in Canada and internationally.
Source: Vivo Cannabis
Blueberries Medical Corp. (CSE: BBM) (OTCQB: BBRRF) (FRA: 1OA) ("Blueberries"), a leading Latin American licensed producer of medicinal cannabis and cannabis-derived products and SLANG Worldwide Inc. (CSE: SLNG), (Frankfurt: 84S), (“SLANG”) a leading global cannabis consumer packaged goods (“CPG”) company with a robust portfolio of renowned brands are pleased to announce that the companies have entered into a memorandum of understanding (“MOU”) dated June 10, 2019 to develop a strategic partnership (“Strategic Partnership”) through which Blueberries may license SLANG’s extensive portfolio of renowned cannabis brands and leverage SLANG’s industry leading know-how and intellectual property to process and formulate cannabis products in Colombia and Argentina. The MOU was negotiated at arm's length.
Blueberries and SLANG will also collaborate on the commercialization of products into other Latin American countries as regulatory framework is implemented. Latin America is among the world's fastest-growing cannabis markets with expected cannabis spending of $12-billion (U.S.) by 2028 (Prohibition Partners) and an estimated 68 million potential medical cannabis patients currently (Quintiles IMS).
“SLANG is a global leader in the cannabis-based consumer packaged goods industry, with an extensive portfolio of brands, including some of the best-selling cannabis products in the world. Offering these high quality and internationally recognized brands will assist Blueberries in leveraging early-mover advantage and capturing market share in the vast Latin American market,” stated Patricio Stocker, Chief Executive Officer of Blueberries. “SLANG’s industry leading experience, depth of expertise and expansive network will create additional value for Blueberries as we continue to offer high quality proprietary products to consumers across diverse markets in Latin America and globally, and position Blueberries as a leader in this new market segment as it continues to evolve.”
The strategic partnership will include:
“SLANG is continuing to seek opportunities to increase its global distribution footprint for our industry leading portfolio of CPG brands. This partnership represents the jumpstart of our expansion in the rapidly growing Latin American market,” said Peter Miller, CEO of SLANG.
“Blueberries’ unique industry expertise and CPG experience makes them the ideal partner for SLANG as we begin to extend our products beyond North America.”
SLANG is a leading global cannabis consumer packaged goods company with a robust portfolio of renowned brands distributed across 2,600 stores in 11 states in the US. SLANG is focused on acquiring and developing market-proven regional brands as well as creating new brands to meet the needs of cannabis consumers worldwide. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the Frankfurt Stock Exchange under the trading symbol 84S. For more information, please visit www.slangww.com.
About Blueberries Medical Corp.
Blueberries is a Latin American licensed producer of naturally grown premium quality cannabis with its primary operations ideally located in the Bogotá Savannah of central Colombia and operations currently being established in Argentina. The Company is led by a specialized team with proprietary expertise in agriculture, genetics, extraction, medicine, pharmacology and marketing, Blueberries is fully licensed for the cultivation, production, domestic distribution, and international export of CBD and THC-based medical cannabis in Colombia. Blueberries’ combination of leading scientific expertise, agricultural advantages and distribution arrangements has positioned the Company to become a leading international supplier of naturally grown, processed, and standardized medicinal-grade cannabis oil extracts and related products.
This morning Flower One Holdings Inc. announced that had completed their inaugural cannabis harvest at the company’s 455,000 square-foot commercial-scale greenhouse facility – the largest in the state of Nevada. What does their fully canopied greenhouse look like? For starters, Flower One is now positioned for the active cultivation and processing of over 100,000 plants housed in eight flower zones, per crop cycle, amounting to an expected 140,000 lbs (or 62,500 kg) of dry flower per year. Take a look at their newly released video below.
About Flower One Holdings Inc.
Flower One is sharply focused on quickly becoming the leading cannabis cultivator, producer and innovator in the highly lucrative Nevada market. In Q2 2019, the Company, having successfully completed the inaugural harvest of its flagship 455,000 square-foot greenhouse and production facility, the largest in the state, is now operating in a state of continuous harvest, for the cultivation and processing of high quality cannabis at scale. Flower One also owns and operates a 25,000 square-foot indoor cultivation and production facility in North Las Vegas, with nine grow rooms, and owns the established NLV Organics consumer brand of cannabis products. Combined, the flagship greenhouse and production facility, and the North Las Vegas facility provide Flower One with 480,000 square feet of capacity for cultivation and processing, production and high-volume packaging of dry flower, cannabis oils, concentrates and infused products. The Company is fully licensed for medical marijuana cultivation and production, as well as recreational marijuana cultivation and production in the state of Nevada and currently holds licensing agreements with their Brand Partners, Flyte Concentrates, Rapid-Dose Therapeutics’ Quick Strip, Old Pal, Palms, HUXTON, CannAmerica Brands, Grenco Science (G Pen), and The Medicine Cabinet.
The Common Shares are traded on the Canadian Securities Exchange under the Company’s symbol "FONE" and in the United States on the OTCQX Best Market under the symbol "FLOOF." For more information, visit: https://flowerone.com
Source: Flower One Holdings Inc.
Abacus Health Products, Inc. (CSE: ABCS) (“Abacus” or the “Company”) reported its financial results today for the first quarter ended March 31, 2019. All amounts are in U.S. dollars unless indicated otherwise.
Q1 2019 Financial Summary
Year-to-Date Operational Highlights
“Over the last few months we have succeeded in positioning ourselves as a leader in topical CBD products,” said Perry Antelman, CEO. “Retailers and consumers appreciate the breadth and quality of our product lines which are the result of over a decade of R&D. Retail interest in our product line continues to grow and we expect to double the number of retail locations by the end of the third quarter of 2019. We are also advancing several other products addressing new therapeutic indications and expect to bring some of these to market over the next 12 months.”
Revenue for the first quarter of 2019 was approximately $3.8 million, which represents an increase of approximately $2.4 million year-over-year (“YoY”), or 166%, and $0.8 million, or 29%, compared to the fourth quarter of 2018. The increase in revenue was primarily the result of an increase in sales of the Company’s CBD CLINIC™ products to the health care practitioner market driven by both increased sales to distributors as well as direct sales. Sales attributable to CBD CLINIC™ were $3.5 million during the first quarter of 2019, representing approximately 93% of total sales.
Abacus recognized approximately $0.3 million of revenues for CBDMEDIC™ in the first quarter of 2019 as it began fulfilling purchase orders received during the quarter by retail chains. Revenues for CBDMEDIC™ in subsequent quarters in 2019 are expected to increase, reflecting purchase orders signed after the first quarter of 2019 and benefiting from a full financial reporting period whereby CBDMEDIC™ products will be in retail stores.
Gross profit for the first quarter of 2019 was approximately $2.4 million representing a gross margin of 63.3%, an increase from 59% for the YoY period as well as from the full 2018 year. The gross margin improved as the Company benefitted from economies of scale as well as reduction in price of certain raw materials.
Net cash flows provided by operating activities was $(5,528,113) for the first quarter of 2019, a decrease of $(6,451,645) compared to $923,532 for the first quarter of 2018. The decrease in cash used by operating activities was primarily due to an increase in sales volume, marketing, advertising and other expenses as well as increase in trade receivables and inventories.
Year-to-Date Business Review
The first quarter saw the beginning of purchase orders and shipments to pharmacy and supermarket retailers, including national chains, across select states. Purchase orders received to date represent over 2,000 retail pharmacy and supermarket locations across 11 states, and the momentum of retailer adoption continues to be strong. Based on advanced discussions with other retailers Abacus expects to double the number of retail doors that CBDMEDIC™ is sold in by the end of the third quarter of 2019.
During the first quarter Abacus launched an advanced skincare line for the treatment of acne, eczema, and itch and rash as well as a new foot pain product. Abacus’ topical product line is among the broadest in the industry and retailers are generally stocking between 8-13 unique SKUs. Based on IRI industry data for the 4-week period ending 4/21/19, CBDMEDIC™ is the leading selling CBD brand in CVS (NYSE: CVS) based on revenue generated per store per month where CBDMEDIC™ is sold.
The continued growth of CBD CLINIC™ in the first quarter reflects a leading position that our topical products have with health care practitioners. Abacus plans to introduce a new line of massage creams, as well as different product sizes into this segment in the second half of the year. The Company continues to build on its strong relationships with key distributors in the healthcare practitioner market and supporting their efforts to attract new users to the product line. Additionally, Abacus launched an inside sales team in the first quarter to manage the increasing interest of health care practitioners which seek to purchase directly from the Company. The Company believes that the healthcare practitioner segment continues to represent a significant opportunity.
Subsequent to the first quarter, Abacus received new purchase orders, increasing the number of retailers it has received purchase orders from to 15 across 11 states. These new purchase orders increase the availability of CBDMEDIC™ products to over 2,000 pharmacy and supermarket retail locations throughout the U.S.
This news release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.
The forward-looking statements contained in this news release include, without limitation, statements relating to the expansion of the offering of the Company’s products and the execution of its growth strategy, are based on management’s current expectations and are subject to a number of risks, uncertainties and assumptions, including assumptions regarding the Company’s ability to efficiently operate its business, market and economic conditions, business prospects or opportunities, future plans and strategies, anticipated events and trends, and regulatory changes that may affect the Company and its customers and industry. There can be no assurance that actual results will not differ materially from those expressed or implied in forward looking statements. Undue reliance should not be placed on forward-looking statements. Additional information about these risks, uncertainties and assumptions is contained under “Risk Factors and Uncertainties” in the Company’s annual information form dated April 12, 2019, which is available under the Company’s SEDAR profile at www.sedar.com. Each forward-looking statement speaks only as of the date hereof, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
About Abacus Health Products, Inc.
Abacus is a company engaged in the development and commercialization of over-the-counter (OTC) registered topical medications with active pharmaceutical ingredients and which contain organic and natural ingredients, including a cannabinoid-rich hemp extract containing CBD from Cannabis sativa L plant. Abacus’ products are aimed at the rapidly growing markets for topical pain relief and therapeutic skincare and are based on proprietary patent-pending technologies developed by Abacus. Abacus’ formulations combine advanced science with organic and natural ingredients to provide safe relief. Abacus currently offers two lines of products: (i) CBD CLINIC™, marketed to the professional practitioner market, and (ii) CBDMEDIC™, marketed to the consumer market. Abacus’ products are offered across the United States and are produced by a contract manufacturer in a cGMP compliant and audited manufacturing facility.
Source; Abacus Health Products, Inc.
Yesterday, the President and CEO of Flower One Holdings Inc. (CSE: FONE) (OTCQB: FLOOF) presented at the Canaccord Genuity 3rd Annual Cannabis Conference at the Grand Hyatt New York in New York. The Canaccord Genuity Cannabis Conference was a one-day event featuring company presentations and one-on-one meetings with senior management teams representing every facet of the global cannabis industry, including U.S. multi-state operators, Canadian licensed producers, technology providers, brand owners and hemp producers from across North America, Europe, Australia and South America.
Today, Flower One Holdings Inc. (CSE: FONE) provided a comprehensive corporate update, including an update on its 400,000 square foot greenhouse cultivation facility. The conversion that began in May of 2018 is now 95% completed, and is expected to be fully completed on schedule.
As well, construction of the company’s 55,000 square foot production facility is progressing well. The buildout of the initial 15,000 square feet of this facility is complete. The exterior construction of the additional 40,000 square foot, two-story structure was completed in March 2019. The Company has now commenced the internal work to support the installation of the post-harvest, extraction and packaging line technology.
Already in 2019, Flower One has announced eight Brand Partnerships. Management of Flower One believes that having a mix of brands and product offerings that cover a diverse consumer spectrum will allow Flower One to respond to consumer expectations and desired experiences across the full pricing and product category matrix.
To access the full corporate update, please click the following link:
Source: Flower One Holdings Inc.
Flower One to Bring Arizona-Based Cannabis Brand, HUXTON, to Nevada
Flower One Holdings Inc. ("Flower One" or the "Company") (CSE: FONE) (OTCQB: FLOOF) today announces a new licensing agreement and Brand Partnership for cannabis-product fulfillment in Nevada. HUXTON is an Arizona-based lifestyle cannabis brand known for their curated, consistent, multi-strain blended products. Flower One is now licensed to manufacture, distribute and sell HUXTON’s signature cannabis products to all cannabis retailers in Nevada.
"We’re pleased to have HUXTON join our portfolio of Brand Partners," said Ken Villazor, President and CEO of Flower One. "As we continue to bring leading brands to the Nevada market, we remain focused on offering retailers and consumers options that represent each part of the cannabis value chain. We’re excited to continue our preparation for rapid market entry into Nevada’s cannabis market, and to broaden our product offering with a diverse range of thoughtfully curated cannabis products that prioritize the consumer’s experience above all else."
Since 2015, HUXTON has focused on simplifying the process by giving the consumer more control of their cannabis experience. "We’re a small group of cannabis enthusiasts, obsessed with crafting consistent, memorable experiences," says Dustin Johnson, Co-Founder and Managing Partner of HUXTON. "Our team is thrilled to be presented with an opportunity to partner with Flower One to further expand the reach of our product offerings beyond Arizona and Washington. We’re firm believers that special moments deserve the right experience, and so do the consumers in Nevada."
In the coming months, HUXTON’s three product series, HIFI, RISE, and ZEN, will be available in Nevadadispensaries as pre-rolls and vape pens, and branded according to the experience they offer. Each blend comprises hand-selected variety of cannabis genetics that unite full terpene, cannabinoid, and trichrome profiles to provide consumers with an experience that is enjoyable and consistent. HIFI combines genetics to create an energetic and euphoric experience; RISE genetics restore vitality, productivity, and focus; and ZEN induces an experience of relaxation and rejuvenation.
About Flower One Holdings Inc.
Flower One is sharply focused on quickly becoming the leading cannabis cultivator, producer and innovator in the highly lucrative Nevada market. Flower One owns and operates a 25,000 square foot cultivation and production facility in North Las Vegas, with nine grow rooms, and owns the established NLV Organics consumer brand of cannabis products. The Company is also rapidly converting its 455,000 square foot greenhouse and production facility, which is the largest in the State of Nevada, for cultivating and processing high-quality cannabis at scale.
Combined, the flagship greenhouse facility and production facility (once fully operational) and the North Las Vegasfacility provide Flower One with 480,000 square feet of capacity for cultivation and processing, production and high-volume packaging of dry flower, cannabis oils, concentrates and infused products. The Company is fully licensed for medical marijuana cultivation and production, as well as recreational marijuana cultivation and production in the state of Nevada and currently holds licensing agreements with their Brand Partners, Flyte Concentrates, Rapid-Dose Therapeutics’ Quick Strip, Old Pal, Palms, and HUXTON.
Flower One’s common shares are traded on the Canadian Securities Exchange under the symbol "FONE" and in the United States on the OTCQB under the symbol "FLOOF." For more information visit: https://flowerone.com
HUXTON, a leading experience-based, lifestyle cannabis brand was developed to simplify the buying process and give the consumer more control over their cannabis experience by creating a set of cannabis product that are are curated and labeled by effect. HUXTON applies the latest knowledge in cannabis science and terpene chemistry to hand-select premium strains and formulate each of HUXTON’s blended product categories, HIFI, RISE and ZEN. Each VIBE product series is labeled by "how it will make you feel," allowing consumers to easily pick their desired experience. HUXTON puts control back into the consumer’s hands with cannabis that is designed to complement their individual lifestyle. With discreet and sophisticated packaging that is designed for on-the-go lifestyles, HUXTON’s experience-based products are available in pre rolls, flower tins, and vape pens. To learn more about HUXTON, please visit www.huxtonusa.com.
Cautionary Note Regarding Forward Looking Information
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Flower One’s public documents. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements relating to the execution of the Company’s strategy and intent to quickly become the leading cannabis cultivator, producer and innovator in Nevada, the scale and capacity of Flower One’s cultivation, processing and custom pre-roll packaging facilities in Nevada, the size and continued growth, profitability, maturity, retail sales and size of the cannabis market in Nevada, Flower One’s ability to execute a rapid entry into Nevada’s cannabis market and to make HUXTON’s product series available in Nevada, and the potential effects of HUXTON’s product series.
Although Flower One has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Flower One Holdings disclaims any intention or obligation to update or revise such information, except as required by applicable law.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Flower One Holdings Inc.
LOS ANGELES, Jan. 29, 2019 /PRNewswire/ -- Los Angeles-based lifestyle brand, Old Pal has added three top executive leaders to its list of best in class new hires as they continue to position the company for unprecedented growth in 2019. Allison Pankow has been named VP of Marketing, Mike Flynn joins as VP of Operations and Joe Franciskovich is Old Pal's new Chief Financial Officer.
Ms. Pankow joins the Old Pal team with a diverse background in advertising and marketing, having spent time on the agency side as well as brand. Her career started in Minneapolis, most notably working for Target HQ on their digital marketing team where she gained valuable experience in the workings of a national fortune 500 retail brand. Her agency career was spent at two of the world's most disruptive agencies, Anomaly and R/GA in New Yorkand Los Angeles. At both, she was managing multimillion-dollar global ad campaigns for an impressive client list including Converse, Beats by Dre, Verizon, Marriott Hotels and SquareSpace.
Ms. Pankow joins the team most recently from MedMen, the cannabis investment and management firm that completed a minority investment with Old Pal in Fall 2018. There she quickly gained invaluable experience in the cannabis space learning the overall landscape and nuances of the rapidly evolving, heavily regulated industry. While at MedMen she managed multimillion-dollar campaigns offering strong strategic leadership to effectively navigate and execute some of the first 360 campaigns of that magnitude the cannabis industry has seen. She was also involved with MedMen's first product launch, Statemade, helping lead the marketing and creative efforts of brand strategy and positioning translating that through packaging design and marketing execution.
Mr. Flynn brings over twenty years of international food and beverage distribution experience to Old Pal. During his tenure at PepsiCo/Yum! Brands he helped launch the Taco Bell, KFC and Pizza Hut brands around the world by building complex local supply chains and global trade channels. His diverse roles of increasing responsibility include quality assurance, product development, supply chain management, purchasing, engineering and operations.
As soon as cannabis was legal in California, Flynn pivoted to the rapidly growing industry and leveraged all of his corporate technical and general management experience to succeed in a consulting COO role at a nascent cannabis aggregator, grower, canner, distributor business in Monterey County. He had significant and immediate impact by increasing daily canning rates by over 400%; implementing an employee piece-rate incentive program, creating job descriptions for all roles, transitioning payroll from cash to direct deposit and implementing Quality, GMP and testing programs.
Joe Franciskovich joins Old Pal, as CFO, from Live Nation Entertainment where he served as Deputy CFO to Live Nation's ticketing business, Ticketmaster. Prior to joining Ticketmaster, Joe was a director and investment lead for Steel Partners, LP where he managed the firm's investments in oil & gas, aerospace & defense, entertainment, and cannabis. Prior to Steel, Franciskovich's professional experience includes private equity roles with Platinum Equity, investment-banking roles with Citigroup, and five years active duty as an officer in the US Air Force.
Franciskovich brings with him to Old Pal a wealth of experience in navigating venture capital and M&A landscapes, hands-on knowledge of best practices in operational finance, and a leadership presence that sets high expectations for the young team.
"Old Pal's success starts with the notion of team," added Old Pal Co-Founder, Jason Osni. "Our vision has always been to create a community where people from different industries can come together, challenge and inspire one another. That is when monumental things happen."
ABOUT OLD PAL:
Old Pal is a lifestyle cannabis company focused on the value-oriented segment of the market. Through strategic partnerships within the trade, the brand has secured high quality, dependable production and distribution. With the incorporation of culture-focused design and marketing, Old Pal has defined a much-needed new space within the industry; a space curating an accessible lifestyle beyond stoner culture.
SOURCE Old Pal