The Flowr Corporation (TSX-V:FLWR) (OTC:FLWPF) announced Friday that production increased 8% in the first-quarter boosted by higher yields from core strains and ramping up cultivation activities in tandem with construction.
For the quarter ended March 2019, the company posted gross revenue of $1.8 million and net revenue of $1.6 million, which excludes $250,000 in design and construction fees from Hawthorne Canada Limited linked to the construction of the R&D facility on the company’s Kelowna Campus.
During the quarter, an additional four grow rooms were propagated as construction of the purpose-built, indoor cultivation facility, Kelowna 1, is on track to be completed in the third quarter this year.
At least 10 out of a planned 20 rooms are licensed and ready for use with eight rooms propagated with plants, said the company in a statement.
“Our team in Kelowna is doing a tremendous job balancing our construction schedule, propagating and harvesting from rooms as they come online, and refining our cultivation process as we dial in our facility,” said Flowr’s CEO Vinay Tolia. “We doubled the number of rooms available for propagation during the quarter and began harvesting from some of the additional rooms in the second quarter. At the same time, we continued to optimize processes and delivered improved yields compared to last quarter."
The company said consumer demand for Flowr’s premium dried flower was strong and average net realized price per gram was $7.70, a 9% quarter over quarter increase.
Flowr through its subsidiaries, holds a cannabis production and sales licence granted by Health Canada.
Headquartered in Toronto with a production facility in Kelowna, British Columbia, Flowr builds and operates large-scale, cultivation facilities utilizing its own patented growing systems. When fully completed, Flowr’s Kelowna campus is expected to produce over 50,000 kg of premium flower annually.
Flowr is expanding globally in Portugal and Australia, and recently broke ground on a 50,000 square feet R&D facility in partnership with Hawthorne, a subsidiary of Scotts Miracle Gro.
Contact Uttara Choudhury at [email protected]