Flower One Posts Net Income Of $15.7M In 'Milestone Quarter'
The cannabis company's quarterly net income totaled $15.7 million, mostly driven by the growth of biological assets of $18.4 million and a gain on fair value of derivatives of $9.7 million, the company said.
Flower One's gross margin before fair value adjustments was around $616,000, or 25%.
Third-quarter cash and cash equivalents amounted to $5.6 million.
At the end of the quarter Flower One had working capital of $38.2 million, which compares to a working capital deficit of $32.9 million at the end of 2018.
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"This was another milestone quarter for Flower One as, among other things, it was the first reporting period that included revenue contributions from our flagship greenhouse," President and CEO Ken Villazor said in a statement.
"During the quarter, we completed and fully commissioned our 55,000-square-foot production facility and welcomed three additional industry-leading brand partners to our growing portfolio."
Those three new brand partnerships include Cookies, Kiva Confections and 22Red.
The company projects it will reach around $9 million in revenue by the end of 2019 and expects to attain positive cash flow in the first half of 2020.
Flower One shares were up 7.37% at 72 cents at the close Wednesday.
Photo courtesy of Flower One.
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