Photo Credit: Flowr Corp.
A Toronto cannabis company said they ramped up production during the second quarter of 2019 while also advancing development at its Kelowna campus to post a gross revenue of $2.8 million.
The Flowr Corporation ended the quarter with a net revenue of $2.2 million, which excludes $358,000 in design and construction fees at the company’s Kelowna flagship campus.
“We delivered an increase in production as we continue to optimize our operational grow rooms and were able to translate the production increase into a similar percentage increase in sales volumes,” said CEO Vinay Tolia in a statement. “Revenues and average selling prices in the quarter were impacted by our product mix, predominantly as we sold fewer pre-rolls than in the prior quarter.”
Tolia said they advanced their outdoor and greenhouse grow and are well-positioned for an initial harvest later this year to support the roll-out of new form factors.
“Taken together, we are executing our plan to build a single operational base from which we will service the Canadian market and once fully operational, drive significant financial performance,” he added.
In the second quarter this year, Flowr’s production increased 61%, reporting production of 460 kilograms of cannabis, compared to 280 kilograms in the previous quarter. The firm also reported a net income of $11,010, compared to the net loss of $3,632 seen in the second quarter of 2018.
Construction in Kelowna is expected to completed by the end of 2019, which will increase their total grow rooms from 10 to 20 rooms.
Flowr spent approximately $7.2 million on the development of Kelowna’s campus during the second quarter. The total budget for the Kelowna project is $36.3 million, with $9.2 million is expected to be spent in the second half of 2019.
In July, Flowr received a second site cultivation license from Health Canada for its forest project which will include an outdoor cultivation area of 150,000 sq/ft., plus 189,000 sq/ft across 42 greenhouses.
The firm is expecting 2019 production from Flowr Forest to be around 5,000 kilos of dried cannabis. When the campus is fully completed, Flowr is expected to produce over 50,000 kg of premium flower annually.
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