Leading cannabis cultivator and producer, Flower One, to bring its highly-focused approach to the largest legal cannabis market in the world
TORONTO, Oct. 2, 2019 /CNW/ – Flower One Holdings Inc. ("Flower One" or the "Company") (CSE: FONE) (OTCQX: FLOOF), the cannabis industry’s first seed-to-shelf solution provider, today announced that it has initiated its West Coast expansion. After successfully delivering the largest facility in Nevada, from conception to revenue generation in less than 14 months, Flower One has now set its sights on California as its next strategic market.
At 455,000 square feet, Flower One’s existing Nevada facility is the largest cannabis greenhouse and production facility in the state. Plans for California entry will see the Company leverage the many cannabis-specific operational proficiencies and manufacturing methodologies it has developed in Nevada, to make it an industry leader and innovator in the state of California.
"Flower One’s expansion to California is a natural and logical progression," said Ken Villazor, President and CEO of Flower One. "With California’s proximity to Nevada, we are able to leverage processes and efficiencies already established as they relate to cannabis production and cultivation, as well as management, purchasing, training, and brand engagement. Our experienced team and the expertise gained from our successful Nevada market entry and roll out, provides us with an excellent foundation to seed our California operations."
Building off of its success in Nevada, where it achieved record cannabis yields and boasts the lowest reported production cash cost per gram in the industry at US$0.45 (US$205 per pound), Flower One’s strategic efforts for market entry into California have been underway for the better part of a year. Leveraging the skills of a highly specialized and experienced team, the Company has conducted thorough analyses of various locations for climate, water, power, tax structures, and labor quality and supply. Strong engagement with local government entities including City, County and State has allowed the site selection process to narrow and negotiations to begin for purchase of a property.
"What Flower One has accomplished in Nevada is nothing short of spectacular," said Kellen O’Keefe, Chief Strategy Officer at Flower One. "We are confident in our team’s capabilities – armed with over 25 years of experience in building and operating some of the largest greenhouse facilities in the world. We can’t wait to bring Flower One to the largest legal cannabis market in the U.S."
According to leading market research firm Arcview, California will grow from its current market of $3.1 billion in sales to over $7.2 billion by 2024. Flower One is positioning itself to become one of the largest and most important seed to shelf cannabis brand fulfillment companies on the West Coast.
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 and beverage 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, beverages, 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" and in the United States on the OTCQX Best Market under the symbol "FLOOF". 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 complete its expansion into the West coast or to buy property in California; the size of the Company’s potential operations in California; the scale of California’s cannabis industry and market and its potential for growth; the Company’s ability to further relationships with its Brand Partners; and the Company’s ability to produce a wide range of top-performing cannabis products.
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 preliminary base shelf prospectus dated September 27, 2019 filed on its issuer profile on SEDAR at www.sedar.com (the "Shelf Prospectus").
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 most recent MD&A.
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.
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.