The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF) released its fourth-quarter and annual 2018 financial results on Thursday, reporting a bump in revenue as it continues to bolster its Kelowna facility.
"2018 was an incredibly eventful year at Flowr and we are only just getting started. As a global leader in the premium cannabis industry, our design and cultivation expertise along with our superior IP know-how enables us to grow high quality cannabis on a large scale at what we believe will be industry-leading yields," said Co-CEO Vinay Tolia in a statement. "The revenue numbers reflect our ability to grow and process high-quality product with only a fraction of our facility and packaging area complete. Once our Kelowna 1 facility is completed in Q3 2019, our operational efficiency will only improve."
The company reported net revenues of C$2.87 million for the three months ended December 31, 2018, up from reporting no revenue over the same period in 2018.
"The fourth quarter of 2018 marked a major milestone for Flowr, as we launched our medicinal and recreational sales channels after receiving our licenses in August 2018, and sold nearly 406 kilograms of premium cannabis, despite having only 20% of our grow rooms in Kelowna 1 operational during the quarter itself. As of today, we have 10 grow rooms in Kelowna 1 licensed for use and expect to have all 20 grow rooms fully constructed in the third quarter of 2019. Completion of Kelowna 1 should enable us to begin capitalizing on strategic growth opportunities for medicinal and recreational use with approximately 10,000 kilograms of capacity for premium cannabis flower on an annualized basis," added Tolia.
Flowr, through its subsidiaries, holds a cannabis production and sales licence granted by Health Canada, with its flagship production facility in Kelowna, British Columbia.
The company is also building a 50,000 sq/ft research and development facility in partnership with Hawthorne, a subsidiary of The Scotts Miracle-Gro Co (NYSE:SMG), as well expanding globally into Australia and Flowr builds and operates large-scale, cultivation facilities utilizing its own patented growing systems. The company is also expanding globally in Portugal and Australia.
For the fourth quarter, the company reported a net loss of C$6.05 million, or C$0.10 a share, driven mainly by the ramp-up of activities related to cultivation operations, harvests and sales. The company sold nearly 406 kilograms of cannabis in the fourth quarter of 2018.
Contact Katie Lewis at [email protected]