Flowr Shares Wilt On Higher Q3 Net Loss
Toronto-based cannabis company Flowr Corporation (TSX.V:FLWR) (OTC:FLWPF) reported third-quarter net revenue of CA$1.34 million ($1 million), a figure the company said was affected by activities including construction and production actions at its Kelowna 1 facility.
The company reported a net loss of CA$14.98 million versus CA$5.63 million in the same quarter of 2018, and a loss per share of CA$0.13, a wider loss than the CA$0.08 per share reported one year ago.
Flowr disclosed a negative adjusted third-quarter EBITDA of CA$5.62 million.
"Our third quarter revenues were short of expectations as we continued to manage construction and production activities as well as ramp up sales and marketing," CEO Vinay Tolia said in a statement.
"While we are disappointed in the delay of our commercial ramp up, we are excited to be exiting 2019 with our infrastructure now in place globally and we are confident in our ability to effectively scale our business in 2020."
Flowr's focus is on building the "right" facilities, rather than large-scale greenhouses, and growing quality product that consumers want rather than putting scale ahead of a proven business, the CEO said.
Flowr reported having cash and cash equivalents of around CA$25 million at the end of the quarter, which it said is enough to finish its development plans.
The company forecast positive cash flow in the second half of 2020.
Over-the-counter shares were down 5.16% at $2 at the time of publication Wednesday.
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