Kelowna, British Columbia — Fiore Cannabis Ltd. (CSE:FIOR) (OTCQX:FIORF) (“Fiore” or the “Company”), a licensed multi-state cannabis cultivator, producer and retailer, today announced preliminary revenue results for the first quarter ended March 31, 2021 which show impressive quarter over quarter growth. Revenue for the first quarter of 2021 is projected at approximately US$850,000, an increase of 110% compared with the fourth quarter of 2020 and an increase of 140% compared with the first quarter of 2020. The projected profit margin for the first quarter of 2021 is approximately 40% based on the cost of cannabis per gram in the fourth quarter of 2020. The strong quarterly performance is primarily due to the addition of operating results generated from the Apex cultivation and production facility in Las Vegas, Nevada in 2021.
The Company is achieving a premium position in Nevada amongst cannabis cultivators due to its flower product being organically grown and boasting high THC levels. The crops sold from the Apex facility during the first quarter of 2021 are the first achieved under recently implemented organic living soil growing conditions with the result being high yield, high THC cannabis flower. The facility’s proximity to the Las Vegas recreational and medical cannabis market enables multiple sales outlets for Fiore product. Even with continued pandemic restrictions, Nevada remains one of the country’s most lucrative markets and its tourism focus is projected to increase demand for cannabis products as restrictions are decreased over time.
“We are very pleased with how our revenue has accelerated in 2021 and it appears we will exceed our own internal expectations for the quarter. Our focused execution against the commitment to deliver positive Adjusted EBITDA will continue each quarter this year. Our start-up of the revamped Apex facility and its initial crop performance have been excellent and bode well for continued strong operating results through the year. The top-line revenue growth is a great sign for us but we will also stay focused on managing our costs and driving returns with the funds we invest in our Nevada and California operations,” said Erik Anderson, President and CEO of Fiore Cannabis.
The Company expects to announce first quarter 2021 financial results on or before May 31, 2021. The Company also confirmed it is in the final stages of completing the non-brokered private placement announced earlier this month and expects to close the financing in the coming week. Proceeds from the financing are expected to be used to fund expansion projects in Fiore’s Nevada and California operations as well as for general working capital purposes.
About Fiore Cannabis
Fiore Cannabis (CSE:FIOR) (OTCQX:FIORF) is a publicly traded company that has been investing in the development of medical and recreational cannabis products since 2014. Fiore has expanded its operating portfolio to include cultivation, production and retail offerings in our key North American legal jurisdictions of Nevada and California. For more information, please visit www.fiorecannabis.com.
For Further Information
Erik Anderson, President and CEO
1-877-438-5448 Ext. 713
Cannabis Industry Involvement
The Company owns marijuana licenses in California and Nevada. Marijuana is legal in each state; however, marijuana remains illegal under United States federal law and the approach to enforcement of U.S. federal law against marijuana is subject to change. Shareholders and investors need to be aware that federal enforcement actions could adversely affect their investments and that the Company’s ability to support continuing U.S.- based operations and its access private and public capital could be materially adversely affected.
This news release contains forward-looking statements or information that relate to our current expectations and views of future events, including in respect of future financial and operational performance throughout 2021 including projected gross revenues for the first quarter, demand for Fiore’s products, the resiliency of the Nevada and California markets, revenues over the remainder of the year, the closing of the private placement and the use of proceeds from such private placement. Statements which are not purely historical are forward- looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate”, “objective”, “may”, “will”, “might”, “should”, “could”, “can”, “intend”, “expect”, “believe”, “estimate”, “predict”, “potential”, “plan”, “is designed to”, “project”, “continue”, or similar expressions suggest future outcomes or the negative thereof or similar variations. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.
Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such factors include, among others: the risks and uncertainties identified in the Company’s reports and filings with the applicable Canadian securities regulators, risks and uncertainties related to the economic impacts of COVID-19 and vaccination programs across the U.S, future levels of tourism to Las Vegas, consumption rates for cannabis, restrictions on air and other travel, a regulatory and other impediments the legal sale of cannabis in the U.S., factors related to production and harvesting of cannabis, crops yields and salability, and the likelihood of national or global events effecting the cannabis markets generally. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise.
This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about Fiore’s prospective results of operations and production, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Fiore’s future business operations. Fiore disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Revenue numbers disclosed are unaudited.