Flowr Corp Reports Slight YoY Rise In Q3 Revenue, Continues Development Of New Genetics

Flowr Corporation (TSX.V: FLWR) FLWPF announced its financial and operational results on Monday for the three and nine months ended September 30, revealing a slight year-over-year improvement in the third quarter gross revenue to CA$3.6 million ($2.81 million) from CA$3.4 million in a prior year’s period.

Darryl Brooker, Flowr CEO said the company has continued to “strengthen our balance sheet during the same period, with an early repayment of CA$7.5 million towards our syndicated credit facility led by ATB financial.”

In addition, in December, the company intends to make a further paydown of CA$3 million from the land sale proceeds towards the credit facility, bringing the principal amount outstanding to below CA$6 million by the end of the year.

Q3 2021 Financial Highlights

• Net revenue totaled CA$2.5 million compared with CA$2.8 million in the same period of last year.
• Net revenue from Flowr Canada decreased to CA$2.3 million from CA$2.8 million in the same period of 2020 due to lower grams of retail products sold during the period.
• Sold 2,339 kilograms of cannabis in Canada, including 260 kilograms of retail products and 2,079 kilograms of bulk sales.
• Net revenue from Portugal-based Holigen Holdings Limited related to tolling service revenue earned in Portugal, which amounted to CA$207,000
• Selling, general and administrative expenses amounted to CA$3.6 million compared with CA$3.6 million in the same quarter of last year.
• Gross loss was CA$3.2 million compared with a loss of CA$5.2 million for the prior year's period.
• In July, Flowr closed two tranches of private placement financings for total gross proceeds of CA$7.6 million and issued 36.2 million units of the company at CA$0.21 per unit, each consisting of one common share and one common share purchase warrant, which entitles the warrant holder thereof to acquire one common share at an exercise price of CA$0.26 per share.

Year-to-Date 2021 Financial Highlights

• Gross revenue amounted to CA$10.6 million compared with CA$7.4 million in the same period of 2020.
• Net revenue totaled CA$8.5 million compared with $5.9 million in the same period of 2020.
• Net revenue from Flowr Canada increased to CA$8 million from CA$5.9 million in the same period of 2020.
• Sold a total of 5,251 kilograms of cannabis in Canada, including 985 kilograms of retail products and 4,265 kilograms of bulk sales.
• Net revenue from Holigen totaled CA$590,000.
• Selling, general and administrative expenses totaled CA$12.4 million compared with CA$14.0 million for the same period in 2020.
• Gross loss improved to a loss of CA$6.6 million from a loss of CA$11million during the same period in 2020.

Operational Update

• Achieved full operation in all 20 grow rooms at the K1 Facility and two R&D rooms at the Kelowna Research Station facility.
• A total of 51 new and exotic genetics have been planted at the KRS Facility and the K1 Facility.
• Successfully introduced a new format of pre-rolls trademarked Dogwalkers, which started delivery in the fourth quarter of fiscal 2021.
• Expects to launch three new strains in the first three months of 2022, as it continues to focus on the development of the new genetics.

“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,” Brooker said.

The company announced in August that its indirect wholly-owned subsidiary, RPK Biopharma Ltd, has entered into a series of agreements with Cookies Creative Consulting and Promotions Inc to cultivate and distribute Cookies products in Portugal from its E.U. GMP facility in Sintra spanning 25,000 square feet.

“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,” Brooker added.

More recent news from Flowr Corporation:

• Cannabis Movers & Shakers: Curaleaf Holdings, TREES, Dewey Scientific, The Flowr Corporation
• Flowr Corp Confirms Its First Sale Of Medical Cannabis In Portugal, Largest To Date In European Union

FLWPF Price Action

Flowr Corp.’s shares traded 4.26% lower at $0.0651 per share at the market close on Friday.