Wildflower Reports Record Quarterly Revenues of $6.3 Million
VANCOUVER, British Columbia, Dec. 20, 2019 (GLOBE NEWSWIRE) -- via NetworkWire: Wildflower Brands Inc. (CSE: , OTC:) (the “Company”) announces more than $6.3M in revenues in its first quarter, compared to $1.0M in the previous year’s first quarter. Revenues from all sources are up, and the largest contributor of the record-breaking revenues was City Cannabis Corp., which was acquired by the Company in June 2019. The revenues for the Company’s first quarter ended September 30, 2019, almost total revenues for the entire year ended June 30, 2019 ($7.1M).
Highlights for the quarter ending September 30, 2019 (with comparisons to the prior quarter except as otherwise noted) include the following:
- Revenues of $6,359,092 (Q1 2018: $1,002,279), including sales in British Columbia’s provincially regulated cannabis market, US nationwide e-commerce sales, nationwide US wholesale sales and from the sales in California’s State’s regulated market through the licenses held there;
- Cost of goods sold of $3,513,818 (Q1 2018: $467,019) related to the cost of the products and packaging sold during the period;
- Share-based payment expense of $2,875,025 (Q1 2018: $106,953) related to the fair value of incentive stock options granted during the period;
- Wages and benefits of $795,736 (Q1 2018: $253,174) related to wages and related benefits paid to employees;
- Consulting fees and management fees of $773,771 (Q1 2018: $158,702) related to fees paid to the Company’s CEO, CFO, COO and board of directors, as well as individuals providing business consulting services;
- Advertising and marketing costs of $130,407 (Q1 2018: $362,884) related to advertising and marketing campaigns for the Company’s cannabis products;
- Investor relations and shareholder communications of $104,551 (Q1 2018: $362,912) related to fees paid to investor relations personnel and costs associated with public relations;
- Legal fees of $236,830 (Q1 2018: $17,966) related to general corporate matters and acquisitions, including the acquisition of City Cannabis Corp.;
- General office and miscellaneous expenses of $232,090 (Q1 2018: $57,723) related to office supplies and incidental expenditures for the Company’s Vancouver-based offices, Washington State subsidiary office, and Californian subsidiary office;
- Interest expense of $624,491 (Q1 2018: $175,135) related to the interest accrued on the loans payable, lease obligations, promissory notes and convertible debentures issued during the period;
- Exchange difference of $508,572 (Q1 2018: $212,983) related to translating the transactions of the Company’s foreign subsidiaries with a functional currency other than the Canadian dollar.
ABOUT WILDFLOWER BRANDS
The Company is a Vancouver-based pioneer in the cannabis industry that develops, designs and operates brands throughout North America. Our brands work together to make Wildflower a leader in cannabis innovation throughout the globe. The Company operates British Columbia’s largest retail cannabis chain under the brand City Cannabis Co.
On Behalf of the Board of Directors
“William MacLean”
____________________________________
William MacLean
Director and CEO
The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.
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