Flower One Releases Preliminary 2019 Financial Results, Provides Guidance
Flower One Holdings Inc (CSE: FONE) has released its unaudited full year fourth quarter 2019 revenues as well as the first quarter 2020 guidance report. In addition, the company has also provided corporate, operational, and brand partner highlights.
With respect to the fourth quarter 2019, Flower One reported $5.7 million in revenues, which is an increase of 128% compared to the third quarter 2019. As for the full year 2019, the company has reported revenues of $9.4 million, which is an increase from their guidance of only $9 million.
Flower One also provided guidance details for the first quarter 2020, and is anticipating revenues to be between $8 million and $10 million. Thus far, cannabis sales have been increasing by an average of 11% month over month, and the company is expecting to remain on a positive revenue trajectory going forward. Currently, the company’s brands are available for purchase across 95% of Nevada’s dispensaries.
In the beginning of March 2020, Flower One entered into a $10 million loan agreement with which the company plans to use the proceeds as a means of supporting its operations and product expansions. The one-year loan comes with an annual interest rate of 15 percent, and the company only has to make interest-only payments on the funds withdrawn during the term of the loan. In addition, Flower One has the option to prepay desired amounts during the term of the loan without any penalty.
Currently, Flower One is in the process of updating its greenhouse and production facility in a move to increase operational efficiencies. Once the improvements are completed, the company is expecting to see an increase in revenues and a decrease in overhead costs, which will allow it to shift focus towards its white label and higher end brands.
With respect to Flower One’s brand partners, the company has entered into a partnership with Heavy Hitters, which is a company focused on high potency cannabis vape products. Recently, Flower One received approval from the state of Nevada to launch several brands, including The Clear, which is a brand focused on cannabis oils, as well Old Pal, which is a line of vape products.
Flower One plans to release the full year end and fourth quarter 2019 financial results on April 15, 2020, and will be hosting a conference call as a means of reviewing those financial results.
Flower One Holdings Inc is a Nevada-based cannabis cultivator and producer, and is currently trading at $0.50 on the CSE.
Information for this analysis was found via Sedar and Flower One Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
