TORONTO, Aug. 29, 2022 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) announces its financial and operational results for the second quarter results for the period ended June 30, 2022. All financial information in this news release is reported in thousands of Canadian dollars and represents results from continuing operations, unless otherwise indicated.
Selected highlights and financial results:
- Gross revenue for Q2 2022 was $3,289 compared to $2,406 in Q2 2021, an increase of 37%.
- Q2 2022 SG&A costs decreased 32% from Q2 2021 and costs of sales decreased of 71% over the same period, primarily as a result cost reduction measures the Company implemented in late 2021 and continued in 2022.
- Adjusted EBITDA was $(1,044) for Q2, 2022 compared to $(1,685) in Q2, 2021.
- Gross profit for Q2 2022 was $498 compared to a loss of $(702) for Q2 2021, primarily as a result of higher average profit margin on products sold.
Key Q2 events:
- Completing a headcount and SG&A reduction resulting in anticipated annual savings of over $4,000
- Sold its indirect wholly-owned subsidiary, Holigen Limited, for gross proceeds of $3,000 and 1.9 million shares in Akanda Corp.
- Announced a leadership transition and governance changes with the appointment of Darren Karasiuk to the role of CEO and Director and the additions of Stephen Arbib as Chairman and Marvin Singer to the Board of Directors
Subsequent events:
- Selling its Kelowna Research Station R&D Facility to Hawthorne Canada Limited for an aggregate purchase price of $15,900
- Closed the sale of the Flowr Forest property to an arm’s length third party for aggregate proceeds of $3,400. The Company used a portion of the proceeds from the sale of this non-core asset to repay the outstanding balance of its ATB-led credit facility in full. The Company is now bank debt free with the payment in full of the ATB credit facility that once stood at $23,770
Darren Karasiuk, Chief Executive Officer of Flowr, commented, “The second quarter of 2022 saw early progress on the Company’s transformation plan, most notably a reduction in costs and a focus on higher margin products and sales channels. The Company remains focused on operational efficiencies, trialing new and exciting genetics, strengthening its balance sheet and levering its global commercial relationships to provide high-quality cannabis for both international and domestic markets.”
About The Flowr Corporation
The Flowr Corporation is a Canadian cannabis company with its operating campus, located in Kelowna, British Columbia. 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:
Darren Karasiuk
Chief Executive Officer
CONTACT INFORMATION:
INVESTORS & MEDIA:
investors@flowrcorp.com
Forward-Looking Information:
Certain statements made in this press release may constitute “forward-looking information”, (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results including, but not limited to: the Company’s expectation that it will build on its achievements as it continues to invest in sales and marketing; Flowr’s business, production and products; Flowr’s plans to provide premium quality cannabis to adult use recreational and medical markets; the Company’s ability to obtain and maintain licensing from Health Canada and other regulatory authorities with respect to its properties and facilities; future legislative and regulatory developments in Canada and elsewhere; the cannabis industry in Canada generally; the ability of Flowr to implement its business strategies; and the ability of Flowr to produce or sell premium quality cannabis. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. We do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information as discussed in the Company’s other publicly filed documents, which can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com, Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
