The Flowr Corporation (CVE:FLWR) (OTCMLTS:FLWPF) (FRA:2VX) reported that its 3Q 2020 net revenue surged 110% year-over-year to $2.8 million, with a 22% increase from 2Q, following a 144% jump in dried flower sold.
The company noted that its corporate expenses (SG&A) fell 19% sequentially to $3.6 million as Flowr continued to see benefits of its global restructuring program announced in March 2020.
The Flowr Corporation CEO Vinay Tolia said in statement: “We continue to make inroads in proving out our business model in the Canadian recreational market. While competition is intensifying, we believe there is a clear consumer demand-driven market for premium products in the Canadian marketplace. Our pending merger with Terrace Global will put us in a stronger financial position and better equip us to execute on our strategic objectives as we enter 2021 and beyond. We are very excited to welcome the Terrace team to the Flowr family and continue to work towards closing the transaction by the end of 2020.”
READ: The Flowr Corporation announces strategic acquisition of Terrace Global in all-stock deal
On October 20, 2020, The Flowr Corporation announced that it would acquire Terrace Global Inc (CVE:TRCE), a multi-country operator created by the founders of MedReleaf, ICC Labs and Bedrocan Cannabis, in an all-stock transaction valued at around $63 million. The combined company, at the time of the announcement, would have $31 million in cash and marketable securities on its balance sheet.
Terrace Global and Flowr jointly operate an outdoor cultivation site in Aljustrel, Portugal, which the company believes to be the largest medical cannabis site in the European Union and one of the largest in the world.
Flowr’s BC Pink Kush was the #2, #1 & #1 selling dried flower SKU in dollar terms sold by the Ontario Cannabis Store to retailers for the trailing 30, 60 and 90 days, respectively, for the period ended September 30, 2020.
A recent consumer research report by the Brightfield Group highlighted Flowr as the #7 ranked Brand by Awareness in Canada and had Flowr ranked #1 or #2 in a variety of Loyalty, Brand Promotion and Satisfaction scores among the Top 10 purchased brands in Canada.
The company has decided against providing more specific guidance, given the uncertainties surrounding COVID-19-related measures, but said that under normal operating conditions, it would expect to be cash-flow positive in the first half of 2021.
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