• Unaudited preliminary fourth quarter 2019 revenues of $5.7 million, up 128% sequentially from the third quarter 2019.
  • Unaudited preliminary full year 2019 revenues of $9.4 million, ahead of Company guidance of $9.0 million.
  • Positive revenue trends continue into 2020; expects revenue in the range of $8.0 million to $10.0 million for the first quarter of 2020, with an average 11% month-over-month growth rate in sales to-date since September 2019.
  • Receives Nevada state approval to launch The Clear’s premium line of vape products and Old Pal’s vape products.
  • Cultivation of unique cultivars for Cookies and 22Red is on schedule with the anticipated launch of both brands in late Q2 of 2020 or early Q3 of 2020.
  • Signs California’s leading vape company, Heavy Hitters, to portfolio of leading cannabis brands.
  • Schedules Q4 and FY 2019 Conference Call for Thursday, April 16, 2020.

Flower One Holdings Inc. (the “Company”) (CSE:FONE, OTCQX:FLOOF, FSE:F11), a leading cannabis cultivator, producer and innovator in Nevada, today announced unaudited preliminary fourth quarter and full year 2019 revenue results, initiated revenue guidance for the first quarter of 2020 and provided additional business updates. Please note that all figures listed in this release are in U.S. dollars unless otherwise noted.

“Through exceptional execution and adherence to our strategic long-term growth plan, we exceeded our revenue expectations for 2019 based upon our preliminary numbers for the year,” said Ken Villazor, Flower One’s President and Chief Executive Officer. “Our focus and proven proficiencies in large-scale cultivation, manufacturing and distribution differentiate Flower One from other cannabis companies. It has been just over seven months since our first sale of product out of our flagship Nevada greenhouse facility. In that short period of time, we’ve gained an overwhelming amount of knowledge of and data on cannabis cultivation, extraction and inventory management as well as on compliance, product launches and retail distribution. Through this learning experience, we’ve accumulated a vast amount of proprietary know-how that will continue to position us well in the competitive cannabis space going forward.”

Kellen O’Keefe, Flower One’s Chief Strategy Officer, added, “Our brand portfolio continues to grow. The strength of our brands has provided us an entry point into almost every dispensary in the State, with retail penetration topping 95%. We are also seeing an increased number of white label brands interested in leveraging our unique capabilities. We are excited about both our pace of sales and our brand partners launched to-date, and over the coming months, we will continue to direct our efforts on delivering industry-leading performance.”

Operational Highlights:

  • Greenhouse & Production Facility Improvements: The Company continues to make operational improvements at its flagship greenhouse and production facility to enhance its post-harvest process and improve the overall quality and efficiencies of cultivation. These process improvements are aimed at increasing company revenues, reducing overhead costs and enabling Flower One to further service its higher-end and white label brands that often require highly unique and carefully managed cultivation strategies for the specific curated cultivars of its brand partners. With just over seven months as a fully operational company, Flower One continues to develop its list of operational and process improvements, checking off one achievement at a time as it works to distinguish itself as a truly differentiated cannabis company.
  • Frankfurt Listing: Beginning on December 23, 2019, Flower One’s Euro-denominated shares are listed on the Frankfurt Stock Exchange (“FSE”) and trade under the symbol “F11.” The Company’s Canadian dollar-denominated and U.S dollar-denominated shares continue to be listed on the Canadian Securities Exchange under the symbol “FONE” and on the OTCQX under the symbol “FLOOF,” respectively. Flower One’s FSE listing is an important step in the Company’s growth and will allow European and UK investors to more easily participate in Flower One’s success while enabling the company to build a broader and more global shareholder base.

The FSE is one of the world’s largest trading markets for equity securities, and with share turnover of approximately 90%, is the largest of Germany’s seven stock exchanges. The FSE facilitates advanced electronic trading, settlement and information systems allowing it to meet the growing requirements of cross-border trading.

Brand Partner Highlights:

  • Brand Launches: Flower One launched several brands into market in the fourth quarter of 2019, including Palms’ premium pre-rolls, Kiva’s Camino Gummies, and RDT’s Vegas QuickStrips™. In the first quarter of 2020, Huxton’s RISE, ZEN and HIFI pre-rolls also launched along with Kiva’s Terra Bites.
  • State Approvals for Launch: The Company recently received Nevada state approval to launch several of its brands’ products. The State approved the premium line of The Clear, including pure-plant derived cannabis oils, for sale. These oils are anticipated to be in stores in the coming weeks. Nevada also approved for sale Old Pal’s vape formulations. Old Pal will now expand its offerings in the Nevada market from flower into disposable vapes with the launch of several news SKUs in early 2020.
  • Old Pal’s Continued Success: Old Pal achieved the #1 flower brand status in the state of Nevada in October 2019, just three months after its first licensed sales from Flower One’s flagship greenhouse. Old Pal currently holds six of the top 15 cannabis SKUs in Nevada according to Headset.
  • 22Red Partnership: In November 2019, Flower One announced its partnership with 22Red, a premier Southern California cannabis brand founded by world famous rock n’ roll band, System Of A Down’s bassist, Shavo Odadjian, which has become known for its brand authenticity and proprietary genetics. Through its partnership with Flower One, 22Red will make its first out-of-state expansion. The cultivation of 22Red’s genetics is progressing as planned, and initial sales including the brand’s entire selection of dry flower and pre-roll products, vape cartridges, and CBD selections are expected in late Q2 2020 or early Q3 2020.
  • Cookies Partnership: The Company also announced a partnership with world renown cannabis and lifestyle brand, Cookies in November 2019, a brand widely recognized throughout the cannabis market for producing some of the highest quality and most famous cannabis cultivars in the world. Cookies’ unique genetics are currently in the process of being cultivated, and the brand is planned for a full launch in Nevada dispensaries in late Q2 2020 or early Q3 2020.
  • Heavy Hitters New Brand Partnership: The Company today announces its latest brand partner agreement with California’s leading vape brand, Heavy Hitters. Heavy Hitters is among the top-selling brands in California with a loyal and dedicated consumer base. The premium vape brand is known for clean, cold filtered, high-potency cannabis vapes featuring proprietary terpene blends and cannabinoid profiles. Part of Mammoth Brands, a leading California cannabis producer and distributor, Heavy Hitters is leader in a portfolio of vape brands including The Farm and Surplus.

Corporate Highlights:

  • Board of Directors: As an emerging, entrepreneurial business, constructing a diverse board by background, experience, ethnicity and gender is critical to Flower One’s ability to effectively oversee the direction of the Company. Flower One’s Board members hail from a variety of industry backgrounds to bring a wealth of experience and knowledge to their advisory roles. In January, the Company announced the addition of Molly Hemmeter, Flower One’s first female director, to the Board. Ms. Hemmeter has over three decades of experience advising private and public companies in the health and wellness space, with a particular focus on growth and sustainability. Ms. Hemmeter recently served as CEO, President and a member of the Board of Directors of Landec Corporation, a NASDAQ listed company in the health and wellness space with annual revenues of more than $550 million.
  • Loan Agreement: In March 2020, the Company entered into a loan agreement (the “Agreement”) for up to $10,000,000. The Agreement is for a one-year term at a rate of 15% per annum, with interest-only payments on amounts drawn during the term of the loan. The Company can prepay any amount during the term of the loan without penalty. This facility provides Flower One with additional financial flexibility to support its ongoing operational focus on processing, finished goods production and high-volume packaging capabilities as the Company continues to introduce new, innovative cannabis brands to the Nevada market.
  • Debenture Conversions: To date, 27% of the Company’s November 2019 convertible debentures and 26% of the Company’s March 2019 convertible debentures have been converted by holders. This conversion reduces the debt held on the Company’s balance sheet and provides for increased liquidity of the stock.

Q1 2020 Guidance

  • With the first sales out of the greenhouse in August 2019, Flower One has just passed its seventh-month mark as an operational company. Sales continue to grow month over month by 11% on average. The Company is positive on its revenue trajectory throughout the current calendar year as additional products launch into market and products that have previously launched gain deeper market penetration over the coming months. At present, Flower One’s brands are sold in over 95% of dispensaries throughout the state of Nevada.
  • Based on current performance trends, Flower One expects revenues for the first quarter of 2020 to be in a range of $8.0 million to $10.0 million.

ROTH Conference

Flower One management will be presenting at the 32nd Annual ROTH Conference in Laguna Niguel, California. Management will be presenting at 10 a.m. PT on Tuesday, March 17th as well as hosting meetings with investors throughout the day.

Q4 and FY 2019 Earnings Conference Call

Flower One also announced today that it will release its 2019 fourth quarter and year-end financial results after market close on Wednesday, April 15, 2020. The Company will host a conference call on Thursday, April 16, 2020 at 8:30 a.m. ET to review its financial results. To join the conference call, please dial 647-427-7450 or 1-888-231-8191. A live audio webcast of the call will be available at http://bit.ly/FONE-Q4-2019. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

For those unable to join the live call, a replay will be available until Thursday, April 30, 2020. To access the archived conference call, please dial 1-855-859-2056 and enter the conference code 3257949. An archived replay of the webcast will be available online for 90 days.

About Flower One Holdings Inc.

Flower One is the largest cannabis cultivator, producer, and full-service brand fulfillment partner in the state of Nevada. By combining more than 20 years of greenhouse operational excellence with best-in-class cannabis operators, Flower One offers consistent, reliable, and scalable fulfillment to a growing number of industry-leading cannabis brands. 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.

The Company’s common shares are traded on the Canadian Securities Exchange under the Company’s symbol “FONE”, in the United States on the OTCQX Best Market under the symbol “FLOOF” and on the Frankfurt Stock Exchange under the symbol “F11”.  For more information, visit: https://flowerone.com.

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of United States securities laws (collectively, “forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from historical results or from any future actual results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “potential,” “should,” “may,” “will,” “plans,” “continue” or other similar expressions to be uncertain and forward-looking.

Forward-looking statements may include, without limitation, statements relating to the Company’s ability to close any offering of securities in connection with the filing of the Shelf Prospectus; the Company’s leadership as a cannabis cultivator, producer and full-service brand fulfillment partner; the Company’s ability to offer consistent, reliable and scalable fulfilment to its brand partners; and the production of the nation’s top-performing edibles brands.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplaces in the United States through its subsidiary Cana Nevada Corp. Local state laws where Cana Nevada Corp. operates permit such activities; however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s Shelf Prospectus dated September 27, 2019 filed on its issuer profile on SEDAR at www.sedar.com.

The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement, the “Cautionary Statement regarding Forward-Looking Information” section contained in the Shelf Prospectus. All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company’s public securities filings with the Canadian securities commissions, including the Company’s Shelf Prospectus.

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.

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 and does not undertake any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Click here to connect with Flower One Holdings Inc. (CSE:FONE; OTC:FLOOF) for an Investor Presentation.



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Multi-state cannabis leader highlights events, partnerships, and activities to coincide with Juneteenth holiday

Trulieve Cannabis Corp . (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States and its dispensary group Solevo Wellness, today announced the sponsorship of expungement clinics in Pittsburgh, Pennsylvania as well as additional initiatives celebrating the Juneteenth holiday.

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A summertime series of expungement events, employee volunteerism, documentary filmmaking, fundraising and more demonstrate the importance of commitment to reform and restorative justice to build an equitable, inclusive cannabis industry

Today, on the 50 th anniversary of when America started its longest war—the War on Drugs— Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced the launch of a summer-long social justice campaign supported by its Sunnyside retail brand and flagship cannabis brand, Cresco . Through community expungement events, employee volunteerism, a film documenting the impact of unjust prosecution, and financial contributions from the Company and our third-party vendors, the “Summer of Social Justice” campaign aims to influence reform to help shape a future cannabis industry with limitless opportunities for everyone. The campaign will amplify the ongoing restorative justice, community business incubator and education and workforce development programming facilitated by the Company’s established SEED (Social Equity & Education Development) initiative.

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Florida’s legal cannabis program has gained plenty of investor attention as the potential for this segment of the US cannabis market continues to expand.

The US cannabis industry is largely fragmented because the plant remains illegal at the federal level. Despite that obstacle, several states across the country have implemented medical and recreational cannabis legislation allowing for cultivation, processing, commercial sale and consumer use.

While this legislation differs greatly from state to state, one state’s medical cannabis industry has seen unprecedented growth: Florida.


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The coastal state’s journey to cannabis legalization has been a challenging one. In 2016, over 70 percent of Floridians voted for a constitutional amendment to allow the use of cannabis for medical purposes.

However, in the 2017 legislation that created the state’s legal medical cannabis framework, then-Governor Rick Scott banned smoking medical cannabis. It wasn’t until March 2019 that Ron DeSantis, the current governor of Florida, lifted the ban on smokable marijuana.

In the face of those challenges, the Sunshine State has developed one of the most attractive medical cannabis markets in the country. In fact, Florida’s medical marijuana space is one of the fastest growing in the country.

Read on to learn more about the investing opportunities in Florida’s legal cannabis space and the top marijuana stocks to look out for.

Florida medical cannabis: High-growth market

Florida’s large population — the third biggest in the US — is a factor in the attractiveness of its cannabis market. The state is also the fourth largest economy in the US with a gross domestic product of just over US$1 billion in 2020.

A 2020 report from Arcview Market Research and BDS Analytics shows the US legal cannabis industry is expected to grow by 18.2 percent between 2019 and 2025 to reach US$33.9 billion. Florida ranks among the jurisdictions that will contribute the most to that growth.

“The Total Available Market, or TAM, is one of the most critical factors for any industry,” states Dustin Robinson, founding partner of Mr. Cannabis Law, in an article written for Green Entrepreneur. “Florida’s marijuana industry happens to have one of the strongest TAMs in the world.”

As of a June 2021 update from Florida Health’s Office of Medical Marijuana Use (OMMU), the state had 569,450 qualified medical marijuana patients and 2,542 qualified physicians.

Florida’s patient count is a small percentage of its population of 21 million, but it has been steadily growing since the drug was legalized in the state in 2016. In fact, the patient figure has more than doubled in the past two years.

According to Robinson, there are almost 300 retail locations in Florida, with another 500 locations expected by the end of 2022.

Beacon Securities analyst Russell Stanley has said Florida boasts a healthy list of addressable medical conditions that can be treated with cannabis, unlike the medical marijuana programs in other states.

“Some other states have had trouble expanding their programs, in part because it’s been very difficult for patients to get access to product,” Stanley told the Investing News Network. “Other states have had restrictions on which healthcare practitioners can recommend it and what they can recommend it for.”


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Florida cannabis market: High barriers to entry

The 2017 Florida medical marijuana law established a cap on the number of medical marijuana dispensaries and required that each center be vertically integrated — they all had to manage their own operations, from cannabis cultivation and processing to distribution and sales.

The cap on the number of dispensaries expired in April 2020. While the vertical integration requirement portion of the law underwent a three year court battle, the Supreme Court of Florida recently upheld the legislation, meaning this requirement will continue to shape the Florida cannabis market for years to come.

During a panel discussion, Steve Hawkins, CEO of Horizons ETFs Management (Canada), said he views vertical integration as one of the key benefits for US companies compared to the Canadian cannabis market. Only players that have been able to develop cannabis production, manufacturing and distribution capabilities can compete in the marketplace.

As of March 2021, the state had 22 licensed medical marijuana treatment centers (MMTCs) and five laboratories licensed for third party testing. The low number of licenses currently awarded creates high entry barriers, which is a big plus for the currently operating companies that have already established a strong foothold in the market.

Robinson believes that “the 22 Licensees are in a great position to build multi-billion-dollar companies in Florida’s growing marijuana industry.”

These 22 established licensees will also have an advantage if and when recreational cannabis becomes legal in the state. “In Florida, the medical marijuana license allows the current MMTCs to build out as big of a footprint as possible in preparation for adult use (recreational) legalization,” he said.

Florida cannabis market: Top Florida cannabis stocks

As the legal cannabis industry grows in Florida, some players have begun to stand out in the state.

Florida native Trulieve Cannabis (CSE:TRUL,OTC Pink:TCNNF) holds the lion’s share of the market and has continually been a top-performing stock in the state.

Trulieve opened Florida’s first medical marijuana dispensary back in 2016, and since then it’s grown into a force in the industry, with a current market capitalization of US$5.52 billion.

As of June 4, 2021, Trulieve had 82 dispensing locations in the state, according to data released by the OMMU. In one week’s time it sold more than 76.5 million milligrams of tetrahydrocannabinol (THC) products and 1.6 million milligrams of cannabidiol (CBD) products, in addition to 32,295 ounces of dried flower.

Shortly after smokable marijuana was legalized, Trulieve began selling flower and was the first in the state to do so. Trulieve has also benefited from a vertically integrated structure that includes cannabis cultivation, production and distribution, which is essential since cannabis cannot be moved across states lines just yet.

Surterra Wellness comes in at a distant second place with 39 dispensing locations and sales of over 22.2 million milligrams of THC products and 1.6 million milligrams of CBD products, in addition to 6,911 ounces of dried flower. Surterra is owned by Parallel, one of the largest privately held multi-state cannabis operators (MSOs) in the country.


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Parallel recently announced its intentions to go public through a definitive business combination agreement with Ceres Acquisition (NEO:CERE,OTCQX:CERAF), a special purpose acquisition company.

Another big player in the state is Massachusetts-based Curaleaf Holdings (CSE:CURA,OTCQX:CURLF). Though not native to Florida, Curaleaf’s presence in the state’s cannabis business is substantial. Of the MSO’s total 101 dispensaries, 37 are in Florida, putting it in third place behind Trulieve and Surterra.

The vertically integrated company also launched the state’s first medical cannabis tablets in September 2019, followed by the first sublingual tablets in July 2020.

Curaleaf put up impressive revenue numbers for 2020, reporting retail revenue of US$423.2 million compared to US$138.7 million in 2019. The company attributed the 205 percent increase to new store openings in its operating states, including five opened in Florida in 2020.

Liberty Health Sciences, which was acquired by Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) in February 2021 in all-stock transaction, also has a considerable stake in Florida. According to the OMMU, Liberty currently has 36 dispensing locations in the state.

Ayr Wellness plans to increase that footprint to 42 dispensaries by the end of 2021, and has a target of roughly US$4 million in annual retail revenues per store for 2022. In May 2021, the company announced the launch of its Origyn premium concentrate line in the state. The product line includes wax, crumble, Rick Simpson oil and shatter. Ayr has also begun construction of a 10 acre outdoor cultivation expected to be completed in Q3 2021.

Florida cannabis market: Investor takeaway

As its medical marijuana industry continues to grow, Florida has a lot to offer in terms of investment opportunities. BDS Analytics projects that Florida’s medical cannabis market will hit US$1.5 billion in sales in 2021, up 53 percent over 2020 sales.

The research firms predicts that recreational cannabis could be legal by 2023, which would set Florida on a path to become the third largest US legal cannabis market by 2026. Regardless of whether adult use gets the green light that soon, investors should still consider the Sunshine State as a premier cannabis jurisdiction.

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Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a new Florida dispensary, the Company’s 90th nationwide.

The latest dispensary, located in the Florida Keys, supports Trulieve’s goal of ensuring medical cannabis patients across Florida have safe, reliable access to the medications they rely on. The Tavernier dispensary joins the nearby Key West dispensary, as well as several others throughout the Miami area.

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Company to Donate: $30,000 to Assist with Elk Grove Village’s Community Events and Outreach Programs; Additional $15,000 to Go Towards Supporting Alexian Brothers Medical Center’s Foundation, Elk Grove Village Police Drug Education Program and Kenneth Young Youth Center

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