“ 7:00a ET 11/29/2021 - Globe Newswire
The Flowr Corporation Announces Third Quarter 2021 Results and Provides Operational Update
The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) ("Flowr" or the "Company") herein announces its financial and operational results for the three and nine months ended September 30, 2021. All financial information in this news release is reported in Canadian dollars and represents results from continuing operations, unless otherwise indicated.
Darryl Brooker, Chief Executive Officer of Flowr commented:
"The third quarter of 2021 continues our focus on the development of new genetics, the growth of premium and ultra-premium dried flower cannabis in Canada, continued improvement of operational efficiencies and production at our indoor E.U. GMP Sintra facility in Portugal ("Sintra Facility").
In July 2021, Flowr entered into an agreement with Green Hedge Education & Distribution Services Ltd. ("Green Hedge") to act as our external sales agent in Ontario, Alberta, British Columbia, and Saskatchewan, significantly increasing our sales coverage in each province. Our points of distribution continue to expand in each province and the recent release of our newest strain, Strawnana, continues to gain consumer attention.
As we continue to focus on new and exotic genetics, Flowr expects to launch three new strains in Q1 2022, which have already been approved for listing, doubling our current offering and continuing to support our strategy of premium and ultra-premium dried flower.
In Portugal, Holigen Holdings Limited ("Holigen") has completed the Sintra Facility and is currently growing new genetics shipped from the Flowr K1 Facility at the Sintra Facility. In addition, we expect to receive further genetics under the previously announced Cookies partnership by end of December 2021, further improving the capability and our confidence in growing Holigen's presence in the E.U. market.
As a result of our continuing efforts on cost reduction and divestment of non-core assets, SG&A expenses have decreased for three consecutive quarters, representing a 21% decrease from the same level in Q4 2020. The land sale agreement that was previously announced is scheduled to close in early December 2021 with the Company to receive $5.3 million in cash, and a further $1.0 million cash receivable within six months upon satisfaction of certain conditions.
During the third quarter we continued to strengthen our balance sheet with an early repayment of $7.5 million towards our syndicated credit facility led by ATB Financial ("Credit Facility"). In December we intend to make a further paydown of $3.0 million from the land sale proceeds towards the Credit Facility, bringing the principal amount outstanding to below $6 million by the end of the year.
As we look ahead to the fourth quarter of 2021 and beyond, we are excited about the opportunities to continue growth in Canada and the E.U. Our focus will remain on executing our strategy to increase sales through new genetics and innovative product offerings, improving operational efficiency to ensure a consistent supply of high-grade premium products and maximizing the potential of Holigen."
Third Quarter and Year-to-Date ("YTD") 2021 Highlights
Operational Update
Selected Financial and Operational Results
In thousands of CAD dollars, Three months ended Nine months ended(except loss per share and grams harvested) September 30, September 30, 2021 2020 2021 2020Grams harvested - K1 1,087,657 1,305,311 3,008,380 3,140,979Grams sold 2,338,769 552,409 5,250,711 1,094,187Gross revenue 3,564 3,403 10,585 7,375Net revenue 2,541 2,823 8,547 5,913Cost of sales 7,276 3,935 16,802 8,564Impairment of inventory 1 1,548 879 2,675Gross loss before fair value adjustments (4,736 ) (2,660 ) (9,134 ) (5,326 )Selling and marketing and G&A 3,632 3,563 12,427 14,000Share-based compensation 418 1,022 (714 ) 2,624Restructuring costs -- -- -- 726Loss from disposal of subsidiary 91 -- 1,150 --Net loss (9,189 ) (10,174 ) (25,375 ) (28,105 )Basic and diluted loss per share (0.02 ) (0.07 ) (0.07 ) (0.20 )
(1) Gross revenue net of excise tax, provision for returns and concessions
For a full discussion of Flowr's operational and financial results, please refer to the Company's Management's Discussion & Analysis and Interim Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2021, which have been filed on SEDAR at www.sedar.com.
About The Flowr Corporation
The Flowr Corporation is a Canadian cannabis company with operations in Canada and the European Union. Its Canadian operating campus, located in Kelowna, BC, includes a purpose-built, GMP-designed indoor cultivation facility, an outdoor cultivation site, and a state-of-the-art R&D facility. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr services the global medical cannabis market through its subsidiary, Holigen Holdings Limited, which has a license for cannabis cultivation in Portugal and operates a GMP licensed facility in Portugal. In 2020, Flowr's BC Pink Kush was recognized as the top indica strain in Canada by KIND magazine.
Flowr aims to support improving outcomes through responsible cannabis use and, as an established expert in cannabis cultivation, strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products.
For more information, please visit flowrcorp.com or follow Flowr on Twitter: @FlowrCanada and LinkedIn: The Flowr Corporation.
On behalf of The Flowr Corporation:
Darryl Brooker
Chief Executive Officer
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December is here. Time to go higher now.
