First Quarter 2021 Guidance Reflects Record-Breaking Company Performance Following Successful Restructuring
NEVADA & CANADA: Flower One Holdings Inc., the leading cannabis cultivator and producer in Nevada, is pleased to announce its record-breaking first quarter 2021 performance, including unaudited preliminary first quarter revenue guidance and operational highlights the Company has achieved in 2021 thus far.
“We are extremely proud of our team and the tremendous collaborative effort put forth by so many to successfully restructure Flower One and become the top producer in Nevada,” said Kellen O’Keefe, Flower One’s President and Interim CEO. “For us to have accomplished what we have under the circumstances was nothing short of remarkable and something our entire team can be very proud of. As a company, we have never been in a stronger position and will emerge from the pandemic a different company on an entirely new trajectory. We continue to break records month after month, ending April with all-time high monthly sales and the highest average selling price per pound in our company’s history. We are extremely well positioned for future growth as Vegas comes back online; and, we welcome the first Cookies store to the strip this week.”
First Quarter 2021 Performance Highlights:
- The Company announces its first quarter 2021 preliminary unaudited revenue guidance of more than USD$13.5M, representing a record revenue quarter for the Company, surpassing the Company’s previous record revenue quarter of USD$11.9M in the third quarter of 20201.
- As of March 2021, the Company is now the top flower provider in the state of Nevada, recognizing both the number one (Cookies) and number two (NLVO, the Company’s in-house brand) as top-selling flower brands in the state2;
- In addition to holding the two top-selling flower brands, the Company is also the leading producer of distillate, bulk and white label flower sales in the state of Nevada;
- The Company’s yielding cultivation analytics are reported up to 135.7 grams per plant through the first quarter of 2021, at an average cost per gram of USD$0.58. The Company has historically has reported its average cost per gram to be between USD$0.40-0.69;
- Through updates to its post-harvesting process (drying, curing, trimming and packaging), the Company has recognized over 300% growth in its processing capacity in the first quarter of 2021, in comparison to fourth quarter of 2020.
1 The Company expects to announce the date for its filing of the fiscal 2020 year and first quarter 2021 in the coming weeks.
2 Data from BDS Analytics (BDSA) from January, February and March 2021.
Completion of Debt Restructuring:
The Company announced, on April 14, 2021, the approval of its convertible debenture resolutions and corresponding debenture amendments (the “Debentures”). As a result of the approved amendments, the Company has exercised its right (the “New Conversion Right”) to convert 60% of the principal amount of the Debentures for units comprised of one common share and ⅚ of a warrant (each, a “Unit”) – resulting in the total principal amount of the 9.5% unsecured debentures due March 28, 2022 being reduced from CAD$42,471,000 to CAD$16,988,400; and, the total principal amount of the 9.5% unsecured convertible debentures due November 15, 2022 being reduced from CAD$9,276,000 to CAD$3,710,400.