TORONTO–(BUSINESS WIRE)–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 January 31, 2021. The financial highlights disclosed in this press release are management prepared and have not been audited or reviewed by the Company’s auditors. Unless otherwise indicated, all amounts are expressed in U.S. dollars.
Financial Highlights, January 2021
Bluma Wellness is pleased to provide the following sales and financial highlights from the month of January 2021:
- Gross Revenue2: $2,892,696
- Revenues less cost of sales before fair value adjustments: approx. $1,225,000 or 59.5% of net revenue
- Gross Price Per Pound3: $8,877.50
- Ounces of Dried Medical Cannabis Flower Sold: 6,241.18 oz
- Milligrams (mg) of tetrahydrocannabinol (THC) Sold: 6,691,885 mg
During the month of January, One Plant Florida, the Company’s wholly-owned, licensed operating subsidiary, averaged sales of 892 ounces of dried medical cannabis flower per retail dispensary, and 955,984 mg of distillate/oil sold per retail dispensary. One Plant Florida’s January sales positioned it second in ounces of dried medical cannabis flower sold per retail dispensary when compared against all other Medical Marijuana Treatment Centers (“MMTCs”) in Florida, maintaining One Plant Florida’s standing for the fourth consecutive month, and tenth in mg of THC sold per retail dispensary when compared against all MMTCs in Florida, in each case according to published data from the Florida Office of Medical Marijuana Use (“OMMU”).
THC Sold (mg)/average oz sold per retail dispensary compared to competitors, January 20214
- Trulieve: 1,773 oz of dried medical cannabis flower / 4,957,819 mg of THC sold per dispensary, number one in average ounces of medical cannabis flower sold per dispensary
- One Plant: 892 oz of dried medical cannabis flower / 955,984 mg of THC sold per dispensary, number two in average ounces of flower sold per dispensary
- Grow Healthy: 879 oz of dried medical cannabis flower / 1,819,522 mg of THC sold per dispensary, number three in average ounces of flower sold per dispensary
- Harvest: 878 oz of dried medical cannabis flower / 1,344,270 mg of THC sold per dispensary, number four in average ounces of flower sold per dispensary
- AltMed Floridat (MuV): 629 oz of dried medical cannabis flower / 2,754,747 mg of THC sold per dispensary, number five in average ounces of flower sold per dispensary
- Surterra Wellness: 625 oz of dried medical cannabis flower / 2,116,982 mg of THC sold per dispensary, number six in average ounces of flower sold per dispensary
- GTI: 525 oz of dried medical cannabis flower / 704,443 mg of THC sold per dispensary, number seven in average ounces of flower sold per dispensary
- Curaleaf: 503 oz of dried medical cannabis flower / 1,566,175 mg of THC sold per dispensary, number eight in average ounces of flower sold per dispensary
“One Plant Florida kicked off the year by accomplishing a remarkable achievement in retail: our company grew its revenue less cost of sales by four percent over the month of December, despite gross revenue coming in slightly lower this month,” said Brady Cobb, CEO of Bluma Wellness. “All of us at Bluma Wellness look forward to a productive and growth-filled year as we continue to focus on bringing our patients in Florida the highest-quality premium medical cannabis flower in the state.”
Looking Ahead (Winter 2021)
Bluma Wellness is pleased to announce that One Plant Florida opened its seventh retail dispensary and delivery hub location in the State of Florida, in Fern Park (Orlando), on December 27, 2020. The retail dispensary is located at 134 Fernwood Boulevard, Fern Park, FL 32730. The Fern Park retail dispensary and delivery hub’s central location allows One Plant Florida to serve qualified patients throughout the Orlando area using its innovative delivery and curbside pickup network.
Bluma Wellness intends to open additional One Plant Florida retail dispensaries and/or delivery hubs in Bonita Springs (Naples) (February 2021), North Miami (April 2021), Fort Lauderdale (May 2021), Oakland Park (June 2021) and Tallahassee (late June 2021), in each case subject to the receipt of all required municipal and regulatory approvals, including from the OMMU.
On January 14, 2021, the Company announced the entering into of a definitive agreement with Cresco Labs Inc. (CSE:CL) (OTCQX: CRLBF) (“Cresco Labs”) dated January 13, 2021 (the “Agreement”), one of the largest vertically integrated multi-state cannabis operators in the United States, pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Bluma Wellness in an all-share transaction that values Bluma Wellness at an equity value of $213 million (the “Transaction”). For more information on the terms of the Agreement, please see the Company’s news release dated January 14, 2021. Further information on the Transaction will be provided in a management information circular that will be mailed to the Company’s shareholders and posted on the Company’s profile on SEDAR at www.sedar.com. Subject to the receipt of all required approvals, the Transaction is expected to be completed by the start of the second quarter of 2021.
Grant of RSUs
The Company also announces that it has granted an aggregate of 4,008,443 Restricted Share Units (“RSUs”) of the Company to certain directors, officers, employees and consultants of the Company (the “Participants”), of which 350,000 RSUs vested immediately upon grant. The remaining 3,658,443 RSUs vest according to the following schedule: one third of the aggregate RSUs vested immediately upon grant; one third of the aggregate RSUs will vest on the first anniversary of the date of grant; and the remaining one third of the RSUs will vest on the second anniversary of the date of grant.
The RSUs were granted to the Participants pursuant to the terms and subject to the conditions of the Company’s RSU Plan, which was approved by the shareholders of the Company on April 9, 2020 (the “RSU Plan”). Under the terms of the RSU Plan, vested RSUs may be settled in cash or common shares in the capital of the Company, at the sole discretion of the board of directors of the Company. Any common shares issued in settlement of vested RSUs will be subject to a stock exchange hold period that will expire four months and a day from the issue date of the RSUs.
The recipients of the RSUs include officers, employees and consultants to the Company and the Company’s wholly-owned, licensed operating subsidiary, One Plant Florida, who have provided and continue to provide valuable services which have fostered the growth of One Plant Florida throughout the state.
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 planned opening of additional One Plant Florida retail dispensaries and delivery hubs in Florida, the anticipated timing of vesting of RSUs, the settlement of vested RSUs in cash or in common shares in the capital of the Company, 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.
1 Per figures published by the Florida Office of Medical Marijuana Use.
3 Gross Price per Pound is calculated as total revenue divided by total pounds of dried medical cannabis flower sold.