Highlights Include One Plant Florida Ranking 7th in Ounces of Dried Flower Sold per Store and 6th in mg of THC Sold per Store When Compared Against all MMTCs in Florida, While Having the Second Fewest Number of Retail Dispensaries and Hubs Open.
Bluma Wellness Inc. (the "Company" or "Bluma Wellness") (CSE: BWEL.U) is pleased to provide its patients and investors with an end-of-month sales and operations report for the month ended July 31, 2020. These financial results have not been reviewed or audited by the Company’s auditors.
Financial Highlights, July 2020
Bluma Wellness is pleased to provide the following sales and financial highlights from the month of July 2020:
Gross Price Per Pound: $6,429.17
Ounces of Dried Cannabis Flower Sold: 1918 oz
Milligrams (mg) of tetrahydrocannabinol (THC) Sold mg: 5.807,000 mg
During the month of July, One Plant Florida, the Company’s wholly-owned operating subsidiary, averaged sales of 480 ounces of dried cannabis flower per store, and 1,451,750 mg of distillate/oil sold per store. That positioned One Plant Florida seventh in ounces of dried flower sold per store when compared against all other Medical Marijuana Treatment Centers ("MMTCs") in Florida, and sixth in mg of THC sold per store when compared against all MMTCs in Florida, in each case according to information gathered by the Florida Office of Medical Marijuana Use ("OMMU"),2 while having just four (4) retail dispensaries and delivery hubs open.
THC Sold (mg)/average oz sold per retail location compared to competitors, July 20203
Trulieve: 6,059,949 mg of THC sold / 1925 oz of dried flower sold per dispensary, number one in average ounces of flower sold per store
GTI: 725,378 mg of THC sold / 808 oz of dried flower sold per dispensary, number two in average ounces of flower sold per store
AltMed Florida (MuV): 2,816,590 mg of THC sold / 660 oz of dried flower sold per dispensary, number three in average ounces of flower sold per store
GrowHealthy: 917,686 mg of THC sold / 641 oz of dried flower sold per dispensary, number four in average ounces of flower sold per store
Harvest: 707,488 mg of THC sold / 648 oz of dried flower sold per dispensary, number five in average ounces of flower sold per store
Liberty Health Science: 1,291,488 mg of THC sold / 605 oz of dried flower sold per dispensary, number six in average ounces of flower sold per store
One Plant Florida: 1,394,466 mg of THC sold / 512 oz of dried flower sold per dispensary, number seven in average ounces of flower sold per store
Surterra Wellness: 1,468,532 mg of THC sold / 447 oz of dried flower sold per dispensary, number eight in average ounces of flower sold per store
Curaleaf: 1,890,965 mg of THC sold / 413 oz of dried flower sold per dispensary, number nine in average ounces of flower sold per store
Fluent: 1,585,874 mg of THC sold / 310 oz of dried flower sold per dispensary, number ten in average ounces of flower sold per store
Bluma CEO Brady Cobb stated, "These positional rankings, comparably, are a testament to the scalability and efficiency of the One Plant Florida premium medical cannabis model and the strength of our delivery and curbside pick up business units. With just four retail dispensaries and delivery hubs open, we are establishing ourselves as a competitor with other MMTCs who have a far larger retail presence. As One Plant Florida adds additional retail dispensaries and delivery vehicles pursuant to our ramp up plan through Q2 2021, our goal is to proportionally increase our market penetration and market share all the while remaining efficient with a smaller footprint, comparatively, than our peers."
One Plant Florida Expands Harvest and Cultivation Teams and Completes First Harvest, Trim and Cure at Indiantown Facility
Since Bluma Wellness and One Plant Florida moved into their new cultivation facility in Indiantown, Florida in April 2020, the Company has maintained its responsible scale-up and has added to its cultivation, processing and lab teams to accommodate the four times increase in flower supply generated from the Indiantown facility. The Company’s Indiantown Nexus greenhouse is fully operational, as are the Company’s new GMP approved dry cure, processing and lab facilities in Indiantown. Additionally, the Company is pleased to announce that premium dried medical cannabis flower taken from the first harvest at its Indiantown Nexus greenhouse facility arrived at One Plant Florida retail dispensaries and delivery hubs during the first week of August 2020. The first harvest exceeded the Company’s yield estimates by eighty-five pounds (300 pounds of dried flower forecasted, 385 pounds of dried flower in actual yield). One Plant Florida anticipates that the Indiantown Nexus greenhouse facility will provide at least 1,300 pounds of premium dried medical cannabis flower per month for its retail dispensaries and delivery hub locations, as well as the current harvest yields from its Ruskin, Florida cultivation facility.
"I am thrilled to announce that One Plant Florida’s retail dispensaries have already received the first harvest of flower from its brand new Nexus greenhouse in Indiantown, making July the final month in which One Plant Florida’s retail locations were dependent on output from our Ruskin facility," said Bluma Wellness CEO Brady Cobb. "We look forward to executing on our ramp up plan and opening new stores/delivery hubs throughout Florida, so that we can get our hand trimmed flower, solventless concentrates and other derivative products to more of Florida’s patients."
One Plant Florida Expands Solventless Concentrate Offerings
One Plant Florida expanded its solventless concentrate offerings in July with the introduction of live rosin products, as well as an expansion of its distillate and pre-roll product lines.
Qualified patients can learn more about these expanded offerings by visiting www.oneplant.us.
Looking Ahead (Fall 2020)
One Plant Florida saw a 66 percent increase in flower sales from July 31 to the date of this press release, according to published figures from the Florida OMMU, reflecting the expansion of the Company’s cultivation footprint via the first delivery of Indiantown-harvested flower to One Plant Florida’s retail locations and delivery hubs in August. Bluma Wellness expects to announce full first-month sales figures from its ramp up associated with the its Indiantown facility becoming fully operational in the August 2020 operational and financial update.
Additionally, Bluma Wellness intends to open One Plant Florida’s fifth retail dispensary location and delivery hub in Ocala, Florida no later than September 15, 2020, pending the receipt of all required regulatory approvals from the Florida OMMU. The Company also plans to open four (4) additional One Plant Florida retail locations and/or delivery hubs in Avon Park, Orlando (Fern Park), North Miami, and Bonita Springs by the end of 2020, pending receipt of all required regulatory approvals from the Florida OMMU.
Change of Auditors
The Company also announced today the change of its auditors from RSM Canada LLP (formerly Collins Barrow Toronto LLP) to SRCO Professional Corporation. The change of auditors occurred in connection with the reverse takeover transaction of the Company by shareholders of CannCure Investments Inc., which closed on June 11, 2020. No reportable event occurred in connection with the change of auditors.
About Bluma Wellness Inc.
Bluma Wellness Inc. owns and operates a vertically-integrated, licensed medical cannabis company in the State of Florida doing business as "One Plant Florida." One Plant Florida cultivates, processes, dispenses and retails medical cannabis to qualified patients in the State of Florida through multiple retail dispensaries and an innovative next-day door-to-door e-commerce home delivery service, thereby offering convenient access for its customers and meeting the demands of an evolving retail landscape. Bluma Wellness plans to continue expanding its cultivation and distribution operations as the Florida market grows and may enter into other US states where the production, distribution and use of cannabis is permitted under state law.
The Company’s securities have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States or to a U.S. Person absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws including information relating to the opening of One Plant Florida’s Ocala, Florida retail dispensary and delivery hub, the planned opening of additional retail dispensaries and delivery hubs in Florida, the expected increased production of medical cannabis due to the Indiantown facility becoming fully operational, the quantity of medical cannabis anticipated to be produced at the Indiantown facility, and the Company’s strategic business plans. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements due to a variety of known and unknown risks and uncertainties including, without limitation: risks relating to cannabis being illegal under US federal law and risks of US federal enforcement actions related to cannabis activities; the Company's ability to comply with all applicable governmental regulations in a highly regulated business; negative changes in the political environment or in the regulation of medical cannabis in the state of Florida; the risk of any disruptions to the Company’s business and operations as a result of the COVID-19 pandemic; negative shifts in public opinion and perception of the cannabis industry and cannabis consumption; increasing competition in the industry; risks of product liability and other safety-related liability as a result of usage of the Company’s cannabis products; the Company’s limited operating history with no assurance of profitability; the ability of the Company to access future financing if needed or on terms acceptable to the Company; the risk of defaulting on its existing debt; risk of shortages of or price increases in key inputs, suppliers and skilled labor; the risks inherent in running agricultural operations such as pests and crop failure; loss of licenses; reliance on key personnel; cybersecurity risks; constraints on marketing products; fraudulent activity by employees, contractors and consultants; tax and insurance related risks and risk of litigation.
The forward-looking information in this press release are made as of the date of this release. The Company does not undertake any obligation to update forward-looking information except as required by applicable securities laws.
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