VANCOUVER, British Columbia, June 02, 2020 (GLOBE NEWSWIRE) — via NetworkWire – Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF) (the “Company”) announces $5.3M in revenues in its third quarter, compared to $2.5M in the previous year’s third quarter and $5.5M in the second quarter. Revenues were slightly less than last quarter even though business was affected by Covid-19. Even with these unforeseen circumstances Wildflower was able to operate with a net gain of $101,435 compared to a loss of $(1,019,862) Q3 2019.
Highlights for the quarter ending March 31, 2020 (with comparisons to the prior year’s quarter except as otherwise noted) include the following:
- Revenues of $5,301,762 (Q3 2019: $2,547,230), 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 $2,616,540 (Q3 2019: $1,494,760) related to the cost of the products and packaging sold during the period;
- Wages and benefits of $1,428,157 (Q3 2019: $726,961) related to wages and related benefits paid to employees;
- Consulting fees and management fees of $88,477 (Q3 2019: $167,537) 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 $11,910 (Q3 2019: $157,823) related to advertising and marketing campaigns for the Company’s cannabis products;
- Investor relations and shareholder communications of $144,435 (Q3 2019: $2,177) related to fees paid to investor relations personnel and costs associated with public relations;
- Professional fees of $241,011 (Q3 2019: $42,001) related to general corporate matters;
- General office and miscellaneous expenses of $202,186 (Q3 2019: $91,635) 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 $620,882 (Q3 2019: $189,676) related to the interest accrued on the loans payable, lease obligations, promissory notes and convertible debentures issued during the period;
- Foreign exchange gain (loss) of $1,190,901 (Q3 2019: $(177,284)) related to translating the transactions of the Company’s foreign subsidiaries with a functional currency other than the Canadian dollar.
The Company has been monitoring the COVID-19 outbreak and its impact on its business. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and our business are not known at this time. These impacts could include an impact on our ability to maintain operations, to obtain debt and equity financing, access to necessary supplies, credit risk associated with our accounts receivable, impairments in the value of our long-lived assets, or potential future decreases in revenue or the profitability of our ongoing operations. The Company continues to work diligently to ensure operations continue while continuing to emphasize the safety of our employees and customers.
Company-wide protocols have been developed to enforce increased hygiene measures such as hand washing, social distancing, and COVID-19 symptom scanning. In the current environment, the Company has prioritized risk-mitigation and business continuity planning for the safety of the team, community and maintenance of on-going operations.
The current COVID-19 situation has created an unprecedented operating environment for many businesses, including Wildflower. Cannabis retail has been deemed an essential service and allowable business in British Columbia and City Cannabis stores remain open with reduced operating hours and a limited number of customers in a store at any given time. Although operations have not been materially disrupted, Wildflower follows a general practice of continually pursuing optimization strategies and is collaborating with landlords and investigating government sponsored assistance programs that would further solidify corporate stability. Trust has always been one of the Company’s core business values and now, in the face of the COVID19 pandemic, trust is prioritized more than ever. Wildflower cares deeply about the safety and well-being of its employees, customers, and partners, and has put measures in place to ensure stores are clean and safe.
The COVID-19 outbreak has also resulted in legislative change to how City Cannabis can sell. The Company is now permitted to have an online ordering system by way of click-and-collect. The Company immediately launched its own click-and-collect platform which allows consumers the convenience of ordering their products online and quickly go into a store and collect their purchase. This allows for fewer and quicker interactions between consumers and staff.
Wildflower’s US operations have been curtailed due to the closure of so many retail locations the Company’s products are sold at. Manufacturing and sales activities have been scaled back to align our resources with the current business environment. The Company is also investigating government sponsored assistance programs to support our employees and their families.
Supply chains have been evaluated for input ingredients and packaging as well as transportation logistics. 3 month supplies have been secured. While we believe we will not have any supply disruptions, our suppliers have all warned things can change quickly and there are no assurances in the current marketplace.
ABOUT CITY CANNABIS CO.
City Cannabis is a premier cannabis retailer recently acquired by Wildflower Brands and holds three of the eight City of Vancouver licenses to sell cannabis and the only company with four licenses in the Province of B.C. City Cannabis has been profitably operating various dispensaries in Vancouver since Vancouver commenced licensing cannabis retailers.
For more information about City Cannabis, visit citycannabis.co.
ABOUT WILDFLOWER BRANDS INC.
Wildflower Brands is a Vancouver-based company developing and designing brands that focus on plant-based health and wellness products. All of our brands work in synergy, toward becoming a global wellness leader.
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