Flower One Holdings Inc (OTCMKTS:FLOOF) achieved total revenue of $13.9 million in the first quarter of 2021, which represents a 53% increase over $8.8 million reported in the first quarter last year. This is mainly due to higher revenues and decreases in cash COGS and other operating expenses.
The leading cannabis producer in Nevada announced its financial results for 2021-Q1, which ended on March 31.
The ACAP Strategic Fund's managers see a "significant scarcity of attractive asset allocation choices globally," but also a strong environment for fundamental stock picking. Q2 2021 hedge fund letters, conferences and more According to a copy of the fund's second-quarter investor update, which ValueWalk has been able to review, its managers currently hold a balanced Read More
Flower One closer to cash flow positive
Flower One was the subject of a massive restructuring of its debt, yielding a significant improvement of its liquidity position by the end of Q1. The financial report also revealed a Q2 preliminary unaudited revenue guidance between $16 to $18 million, an absolute record for the Company.
“We are focused on the financial discipline and operational excellence required to meet or exceed projections and achieve cash flow positivity,” said Kellen O’Keefe, Flower One’s president and interim CEO.
Richard Groberg, Flower One’s interim CFO asserted that “The operational transformation has not only facilitated increased cultivation and higher sales, but also lowered operating and corporate overhead compared with the fourth quarter of 2020 – bringing the Company closer to being cash-flow positive.”
Flower One Price On The Up
Flower One was hit in the stock market due to the COVID-19 restrictions in Las Vegas, coupled with its debt restructuring period. According to a report by Canaccord Genuity, there is room for appreciation after the company traded at multiples below the U.S. plant-touching average.
“Our price target is trimmed to C$0.40 to reflect reduced 2021 estimates, but nevertheless offers substantial upside from the current market price,” said Canaccord Genuity analyst Bobby Burleson.
“With healthy capacity and better execution on utilization, FONE now looks positioned to generate positive adjusted EBITDA on a quarterly basis for the balance of 2021 and strong sequential back-half revenue growth.”
Other Cannabis Stocks
High Tide Inc (NASDAQ:HITI), Acreage Holdings Inc (OTCMKTS:ACRHF), and Village Farms International Inc (NASDAQ:VFF) are the cannabis stocks with the lowest 12-month trailing price-to-sales (P/S) ratio.
On June 26, High Tide announced the acquisition of online marijuana accessories retailer Daily High Club in the U.S. As reported by Investopedia, the cash-and-stock transaction was valued at $10 million, “with acquisition is expected to boost High Tide's U.S. e-commerce presence.”
Acreage Holdings reports a 12-month trailing (P/S) ratio of 3.1, with operations across 13 U.S. states that comprise 30 operational dispensaries and 18 cultivation and processing licenses.
Village Farms International is based in Canada and depicts a 12-month trailing (P/S) ratio of 3.5. According to Investopedia, the company grows cannabis from over nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in Canada and the U.S., as well as from partner greenhouses in Canada and Mexico.