Fiore Cannabis Announces Third Quarter 2021 Financial Results as Company Records Its First Quarterly Net Profit
Cannabis company CEO to share update with investors regarding expansion plans in Nevada and California after posting strong quarterly financial performance
Kelowna, British Columbia and Las Vegas, Nevada--(Newsfile Corp. - November 29, 2021) - Fiore Cannabis Ltd. (CSE: FIOR) (OTCQB: FIORF) ("Fiore" or the "Company"), a licensed multi-state cannabis cultivator, producer and retailer, today announced its third quarter 2021 financial results that support the Company's turnaround efforts and its U.S.-based growth strategy. Fiore's Interim Financial Statements and corresponding Management's Discussion and Analysis for the quarter ended September 30, 2021 are available on the Company's SEDAR profile at www.sedar.com and Company's website at www.fiorecannabis.com.
"The third quarter of this year has been a pivotal period for Fiore as we achieved a number of key milestones including recording our first quarterly net profit," said Erik Anderson, President and CEO of Fiore Cannabis. "We continued to build upon our strong first half of the year and focused on driving performance in our revenue-generating U.S. operations. During the quarter, we achieved strong sales activity at our Apex Cultivation and Production Facility in Las Vegas, Nevada and at our cannabis dispensary in Desert Hot Springs, California. Quarterly year-over-year revenues and gross profit were basically doubled at the same time that we kept our G&A costs for year to date in check."
Fiore reported the following financial highlights for the third quarter and for the nine months ended September 30, 2021:
- Revenues were $1,106,000 in the third quarter of 2021, an increase of 101% compared with $550,000 in the third quarter of 2020. For the nine months ended September 30, 2021, revenues were $2,798,000, an increase of 68% compared with $1,658,000 for the nine months ended September 30, 2020. Increased sales from the Apex Facility and solid retail performance at the California dispensary were the primary drivers.
- Gross profit was $297,000 in the third quarter of 2021 compared with a gross profit of $158,000 in the third quarter of 2020. For the nine months ended September 30, 2021, gross profit was $857,000 compared with a gross loss of $207,000 for the nine months ended September 30. 2020. The improved gross profit illustrates the Company's ongoing focus on operational efficiencies and high-profit activities in its U.S. operations.
- General & Administrative expenses were $1,188,000 in the third quarter of 2021 compared with $537,000 in the third quarter of 2020. For the nine months ended September 30, 2021, G&A expenses were $2,935,000 compared with $5,785,000 for the nine months ended September 30, 2020.
- Net profit was $14,000, or nil per share, in the third quarter of 2021, compared with a net loss of $962,000, or $0.01 per share, in the third quarter of 2020. The Company's first recorded net profit in its history was primarily due to the gain on the sale of subsidiary companies.
- The Company's deficit was $114,724 at September 30, 2021, essentially unchanged compared with $114,618 at June 30, 2021.
- Cash was $237,000 at September 30, 2021, slightly lower than the $406,000 at June 30, 2021.
"The Company's focus for the remainder of 2021 and into 2022 is to continue pushing the Company into a growth phase and expand our operating scope in our key U.S. markets. Nevada and California are growth markets for cannabis products and are expected to see sales expand in the coming months as the tourist trade in both locations improves due to COVID-19 restrictions being reduced. Additionally, we see positive signs for U.S. federal legalization of cannabis as the Republicans have joined the Democrats in proposing and drafting legislative options," said Anderson.
"Operationally, we are pleased with progress at the Apex Facility and the high-quality cannabis products we are producing there and it should be noted that sales towards the end of the quarter remained strong, which gives us a great start on our fourth quarter. Additionally, we have our partner company Allied Corp. constructing their modular units for the Apex site which is going to basically double the amount of cannabis product being generated at this location. We have also ramped up our Diamante Labs extraction operation to satisfy the growing demand in concentrates from the Las Vegas market. Revenues generated from the extraction lab can be expected to further enhance our financial results in the fourth quarter."
Investor Conference Call
The Company will be following up today's results release with a Zoom meeting on December 6, 2021 to further review financial performance and share an updated corporate presentation. The meeting will be hosted at 9:00 am Pacific Time by President and CEO Erik Anderson and will include a question and answer period.
Those interested can attend the meeting and view the presentation on the Zoom webcast available at:
https://zoom.us/j/81013817908 (Zoom ID: 81013817908, Passcode: 022355).
For those interested in submitting a question, we ask that you submit your question in advance to firstname.lastname@example.org or pose your question during the online chat that will be made available during the presentation.
About Fiore Cannabis
Fiore Cannabis Ltd. (CSE: FIOR) (OTCQB: FIORF) is a publicly traded company that has been investing in the development of recreational and medical cannabis products since 2014. The Company has expanded its operations to include cultivation, production and retail offerings in the key North American legal jurisdictions of Nevada and California. Fiore's portfolio of brands caters to diverse consumer and patient experiences, with brands and products that address recreational, medical, wellness as well as new consumer experience preferences. Current brands include Fiore Cannabis, Diamante Labs, Surfer and The Weekender. The Company operates retail cannabis outlets through its Green Leaf Wellness brand. 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 Nevada and California. 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, future business goals and plans, the resiliency of the Nevada and California markets, the likelihood of the growth of retail sales, the doubling of our cultivation footprint, the expansion of our operations in Nevada and California, the U.S. growth strategy generally, future revenues due to new product releases and the prospect of future returns for investors. 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., assumptions regarding future levels of tourism to Las Vegas, assumptions regarding consumption rates for cannabis in the U.S., assumptions regarding the success of future product launches and demand for such products, assumptions regarding restrictions on air and other travel, assumptions and uncertainties related to financing activities, assumptions regarding the activities of secured and unsecured creditors of the Company, uncertainties and risks related to ongoing litigation matters, risks related to the manufacture of cannabis products for consumer consumption, risks related to manufacturing process itself, regulatory and other impediments to the legal sale of cannabis in the U.S., risks related to certain joint ventures and partnerships, risks related to the regulatory processes regarding licensing in the States of Nevada and California and assumptions regarding the approval of additional cultivation space by regulatory agencies where required. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105309