08:07:45 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Flower One Holdings Inc
Symbol FONE
Shares Issued 172,192,279
Close 2018-10-22 C$ 1.40
Market Cap C$ 241,069,191
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Flower One acquires Las Vegas property for $1.15M

2018-10-23 07:52 ET - News Release

Mr. Ken Villazor reports

FLOWER ONE, OWNER OF NEVADA'S LARGEST CANNABIS CULTIVATION AND PRODUCTION FACILITY, ACQUIRES KEY RETAIL PROPERTY

Flower One Holdings Inc. has made a property acquisition in north Las Vegas from an arm's-length third party for total cash consideration of $1.15-million to support its future retail presence. The property is a free-standing former bank building offering important security attributes beneficial to the company's retail strategy. The building is conveniently located within close proximity to the major retail corridor in north Las Vegas, the Cannery Hotel & Casino, the company's 455,000-square-foot flagship cultivation and production facility, which is the largest in Nevada, and NLV Organic Inc.'s fully operational 25,000-square-foot cultivation and production facility.

The company has submitted applications for multiple recreational marijuana establishment licences within the state of Nevada, an opportunity only available to existing operational cannabis licence holders. The Nevada's Department of Taxation anticipates awarding dispensary licences to successful applicants in December, 2018.

"Flower One's core business in Nevada will continue to focus on cannabis cultivation, processing and high-volume packaging," said Flower One's president and chief executive officer, Ken Villazor. "However, we wanted to take full advantage of the rare opportunity to apply for these dispensary licences given our eligibility. Should our applications prove successful, we view the opportunity to operate a state-licensed dispensary as an effective way to better understand the cannabis consumers' preferences in the highly evolving Las Vegas and Nevada market."

The potential dispensary licences would be in addition to the company's four existing licences and the five additional licences it expects to obtain through the acquisition of NLV Organics Inc., as announced on Oct. 9, 2018, which is expected to close by the end of the year. This acquisition will include a fully operational 25,000-square-foot cultivation and production facility with nine grow rooms capable of cultivating up to 4,500 plants per cycle. When combined with the company's 80,000 plants per cycle, these combined 480,000 square feet of cultivation and production will result in annual cultivation of over 148,000 pounds.

About Nevada's fast-growing cannabis market

Medical cannabis use in Nevada was legalized on Nov. 7, 2000, and recreational (adult) use was legalized on July 1, 2017. According to state officials, Nevada's fast-growing marijuana industry had revenue in its first fully legalized year totalling $529.9-million, including $424.9-million for recreational use. The Nevada cannabis market is driven largely by the tourism market which is estimated to be 55 million visitors per year with approximately 42 million of them visiting Las Vegas according to the Las Vegas Convention and Visitors Authority.

Nevada's regulatory framework requires every five pounds of dry flower to be tested and approved by an independent, state-licensed laboratory before the product is cleared for retail or processing ensuring all products sold in the state provide consumers with a trusted, quality experience. This has allowed the demand for cannabis to steadily grow since being fully legalized. Pricing remains stable given the limited number of cannabis licenses issued by the State of Nevada. For the period of July to December, 2018, the state's Department of Taxation has set the following fair market value wholesale pricing:

  • Dry flower buds: $2,799 (U.S.) per pound;
  • Dry small popcorn/bud: $2,227 (U.S.) per pound;
  • Dry trim/shake: $798 (U.S.) per pound.

About Flower One Holdings Inc.

Home to the largest commercial-scale greenhouse in the state of Nevada, Flower One aims to leverage the industry's leading agricultural technologies, utilizing innovative growing and sustainability practices to cultivate high-quality cannabis at scale for Nevada's growing cannabis market. The company is licensed for medical marijuana cultivation and production, and recreational marijuana cultivation and production in the state of Nevada.

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