Bluma Wellness Reports Fiscal Results for the Third Quarter 2020

TORONTO–(BUSINESS WIRE)–Bluma Wellness Inc. (the “Company” or “Bluma Wellness”) (CSE: BWEL.U) a leading Florida-based medical cannabis company, today reported its unaudited, consolidated interim financial results for the three and nine months ended September 30, 2020. Financial results are reported in accordance with IFRS and all currency is reported in U.S. dollars. Selected financial results from the third quarter of 2020 are illustrated in the table below.

Three Months Ended Nine Months Ended
NOTE September 30, 2020
September 30, 2019
September 30, 2020
September 30, 2019





Cost of sales
Cost of inventory sold





Inventory and Biological Asset impairment



Production salaries and wages





Production supplies and expense





Revenues less cost of sales before fair value adjustments





Fair value adjustment on inventories






Fair value adjustment on growth of biological assets






Revenue less cost of sales and fair value adjustments





Amortization and depreciation 10,11,12





Stock-based payments




Finance expense 15,17,18





Foreign exchange loss


Gain on change in fair value of contingent consideration


Gain on derivative liability




General and administrative








Transaction costs





Professional fees





Office expense



Gain on disposal of assets






Net Loss





Other Comprehensive Loss
Change in foreign exchange



Net loss and comprehensive loss





Net loss per share – Basic and diluted
Basic and diluted









Weighted average shares outstanding





During the third quarter of 2020, Bluma Wellness and One Plant Florida, the Company’s wholly-owned, licensed operating subsidiary, focused heavily on scaling up operations, with a particular emphasis on executing the Company’s long-envisioned supply ramp-up plan. The centerpiece of the plan involved ensuring One Plant Florida’s new cultivation and processing/lab facilities at its Indiantown, Florida property became fully operational, with the resulting four-fold increase in supply from the Indiantown facility serving as a springboard for planned new retail dispensary openings and expansion of One Plant Florida’s innovative delivery and curbside pickup network.

As a result of the Company’s ramp-up plan, capital expenditures necessary to finance the completion of the new Indiantown facilities and the operational expenses necessary to expand the One Plant Florida cultivation and processing teams were higher in Q3 2020 than they otherwise would have been.

Financial Highlights

  • Revenue: Net revenue for the third quarter of 2020 increased 47.7% from the prior quarter. Revenue growth was driven primarily by the organic growth of existing dispensaries and the opening of additional retail dispensaries in the third quarter. Additionally, One Plant Florida has seen a steady increase in the average price per gram of medical cannabis flower sold, attributable to the market’s continued recognition of One Plant Florida’s premium medical cannabis products.
  • Net Income: Net income for the third quarter 2020 was approximately $300,000, or $0.003 per basic and diluted share.
  • Balance Sheet: As of September 30, 2020, current assets totaled approximately $15.2 million and included cash and cash equivalents of approximately $300,000.

Management Commentary

“As we near the close of 2020, Bluma Wellness has continued to establish itself as the premium flower and flower-derived products company in the budding Florida medical cannabis marketplace,” said Brady Cobb, CEO of Bluma Wellness. “As promised, the Company has executed on its supply ramp-up plan in Indiantown, the results of which can immediately be seen in our increased Q3 sales and One Plant Florida’s growth in market share over the prior fiscal quarter, as measured by the Florida Office of Medical Marijuana Use’s weekly reports. I am also very proud of our ability to scale up responsibly and efficiently, which is evidenced by the fact that just fifteen months after commencing sales in Florida, we are generating positive cash flow from operations. All of this has been made possible by our fundamental mission to grow and dispense the highest quality medical cannabis flower in Florida.”

“I am also proud to share the same-dispensary sales growth that One Plant Florida has achieved from the second quarter to the third quarter of 2020,” added Cobb. “As we had anticipated, this organic sales growth evidences the fact that as our retail dispensaries and delivery hubs become fully stocked with the increased supply of medical cannabis from our Indiantown cultivation and processing facility, our sales volume per retail dispensary has continued to increase. One Plant Florida now ranks in the top three Medical Marijuana Treatment Centers in ounces of medical cannabis flower sold per retail dispensary when compared with all other Medical Marijuana Treatment Centers in Florida, once again affirming the core principle that remains at the heart of everything we do: One Plant Florida medical cannabis is grown, not made.”

Business Development

As previously announced, One Plant Florida intends to open two (2) additional retail dispensary and delivery hub locations in Florida before the end of 2020, with planned openings in Fern Park (Orlando) and in North Miami, pending the receipt of all required municipal and regulatory approvals, including from the Florida Office of Medical Marijuana Use (“OMMU”). In total, the Company expects that One Plant Florida will operate a total of eight (8) retail dispensary and delivery hub locations before the end of 2020.

Furthermore, the Company expects to commence construction on a new 60,000 square-foot processing, lab, and edibles kitchen facility in January 2021, which will be located directly adjacent to One Plant Florida’s Nexus greenhouse facility at its Indiantown facility. Once complete, the new facility will include post-harvest and dry cure rooms, packaging rooms, a state-of-the-art extraction lab and ice hash lab, as well as an edibles kitchen. The Company expects this new facility to become operational in Q4 2021, which will further increase One Plant Florida’s operational efficiency and allow for a significant expansion in its product offerings. The Company is also in the process of designing a 60,000 square-foot extension to One Plant Florida’s Nexus greenhouse facility, to be used for additional cultivation capacity. Construction on the Nexus greenhouse extension is expected to commence in Q2 2021. Both construction projects will be financed by and in accordance with the terms of the Company’s previously announced construction loan agreement with Advanced Flower Capital.

Additionally, One Plant Florida has added three (3) delivery vans to its fleet of delivery vehicles and intends to further expand its industry-leading delivery and curbside pickup network in Q4 2020 and throughout 2021, with the aim of providing same-day delivery to qualified patients in all major metropolitan areas of Florida before the end of 2021.

Finally, the Company expects that One Plant Florida will open an additional five (5) retail dispensary and delivery hub locations throughout Florida by the end of 2021, pending receipt of all required municipal and regulatory approvals, with an end goal of opening approximately 25 One Plant Florida retail dispensaries by the end of Q3 2022, 16 of which are leased and in the process of development as of today. The Company’s plans for additional retail dispensary openings stems from its focus on maintaining its increased supplies of medical cannabis and efficient operations across its existing retail dispensary locations, while continuing to rank in the top three for ounces of medical cannabis flower sold per dispensary, according to OMMU’s weekly reports.

Third Quarter 2020 Financial Overview

Net revenue for the third quarter of 2020 was approximately $3.1 million, up 47% from $2.1 million in net revenue recorded in the second quarter of 2020, driven by growth in sales for One Plant Florida’s existing retail dispensaries and the newly opened retail dispensaries in Port St Lucie, FL (opened June 24, 2020) and Ocala (opened September 25, 2020). The Company also reports that for One Plant Florida’s Boynton Beach, Jacksonville Beach, and St. Petersburg, Florida retail dispensaries, all of which have been open for at least six (6) months, same-dispensary sales grew at a rate of 39.5% from the second quarter to the third quarter of 2020.

Net income attributable to Bluma Wellness for the third quarter 2020 was approximately $300,000, or $0.003 per basic and diluted share, as compared to a net loss of $4.5 million or ($0.05) per basic and diluted share for the third quarter of 2019. Net income in the third quarter was driven by the increase in the Company’s net revenues as well as the increase in inventory produced by the Indiantown facility during the third quarter.

Balance Sheet and Liquidity

As of September 30, 2020, current assets totaled approximately $15.2 million, including cash and cash equivalents of approximately $300,000.

Total basic and diluted weighted average common shares outstanding for the three months ended September 30, 2020 was 113,396,582.

Capital Markets, Financing and Corporate Update

Subsequent to the end of the third quarter, Bluma Wellness amended its construction and bridge loan agreements with Advanced Flower Capital, which resulted in amended covenants and additional borrowing of $4 million. For further information regarding the modification of the Company’s existing loan agreements, please refer to the Company’s press release dated November 2, 2020.

The Company also wishes to note that it has accepted the resignation of its Chief Operating Officer, Mike Smuts, effective October 30, 2020. The Company’s operations are now being handled by Michael Bondurant, the Company’s long-time President and Chief Strategy Officer, as well as Charles Bailey, Director of Supply Chain and Logistics and Kevin Fitzpatrick, Director of the Lab and Derivative Products.

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.

Additional Information

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.

Forward-Looking Information

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, including the anticipated locations and completion dates of such retail dispensaries and delivery hubs, the expansion of the Company’s delivery and curbside pickup network, the expectation that the Company will commence construction of a new processing, lab and edibles kitchen facility at its Indiantown facility, the expectation that the new facility will become operational in Q4 2021, the expectation that the new facility will increase One Plant Florida’s operational efficiency and allow for the expansion of One Plant Florida’s product offerings, the expectation that the Company will commence construction of an extension of its Nexus greenhouse facility, the Company’s plans for financing the proposed expansion and extension 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.

Latest posts