Thursday, December 27, 2018

The Flowr Corporation (TSX.V: FLWR) Offers Premium Cannabis Products While Surpassing Health Canada’s Stringent Health Requirements

  • Canada’s recreational cannabis use is predicted to soar as adult-use spending increases
  • The Flowr Corporation is using its cultivation expertise to be a leader in super-premium products
  • With production facilities ready for completion in 2019, Flowr is positioned to stay ahead of the competition
The Flowr Corporation (TSX.V: FLWR), a vertically integrated Canadian cannabis company, offers consumers a premium cannabis experience by maintaining the highest standards of quality in its production methods. With one of the industry’s top cultivation teams, proprietary growing systems and a commitment to R&D, Flowr aims to become “the leading seller of premium, non-irradiated cannabis in the Canadian medical and recreational markets,” as co-founder, chairman and Chief Strategist Steve Klein stated in a news release (http://nnw.fm/2aQd1).
In October 2018, the Canadian government legalized cannabis. It anticipated that 450,000 customers a day would participate in Canada’s cannabis market, which would make recreational cannabis use a $900 million industry (http://nnw.fm/645Ir). Strong growth is predicted for this industry as adult-use spending increases. According to a forecast by analysts at the Canadian Imperial Bank of Commerce (CIBC), cannabis sales in Canada will grow more than seven-fold to $6.8 billion, making the industry larger than the hard liquor market and almost as lucrative as the wine market.
Flowr is well-positioned to capture a significant share of this growth.
The company began selling its products to the medical and recreational markets in October 2018 and has projected that it will sell approximately 550,000 grams this year – a very strong start given that its facilities are currently 20 percent operational and only began cultivation in the spring of 2018. Flowr expects to have its “Kelowna 1” facility fully operational by mid-2019, with production expected to be at an annual rate of 12 million grams, creating the opportunity for rapid sales growth. The company plans to begin work on the much larger “Kelowna 2” facility almost immediately after it completes Kelowna 1, providing even more potential upside in coming years.
As much as volume is important, though, quality is Flowr’s calling card. Flowr’s high production standards and its facilities that are designed to pharmaceutical industry standards allow it to grow cannabis that meets Health Canada’s strict standards for cleanliness without the need for irradiation. Cannabis grown in greenhouses or lower quality facilities is almost always blasted with radioactive material (a process called irradiation) to kill mold and bacteria so that it can pass Health Canada inspection. While such treatment is allowed, it is known to diminish the consumer experience, as it leaves dead mold and bacteria particles on the flower and alters the taste and smell of the plant in other ways (http://nnw.fm/7xgBi).
As a result, Flowr and only a few other producers can meet the demand for premium quality cannabis, a key reason why its products were chosen for sale by government retailers in Ontario, British Columbia and Nova Scotia, as well as a private dispensary in Saskatchewan. This quality also played a role in the team behind Toronto’s highly successful Ace Hill Beer choosing Flowr as their partner for their new Ace Valley cannabis brand.
Despite being a relatively new company in the Canadian cannabis industry, Flowr already has multiple products available to more than half of Canada’s population, with plans to add more distribution channels in Canada and, potentially, internationally.
“In every consumer industry there is a sizable and very valuable market for premium or luxury goods and this will be true of the cannabis market,” added Klein. “We’re building Flowr to capture a huge share of this market as there are few, if any companies, who can match our ability to grow premium cannabis profitably and at scale.”
For more information, visit the company’s website at www.Flowr.ca
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