- The Flowr Corporation recently acquired 19.8 percent of Holigen, a large-scale cannabis producer
- Lance Emanuel has joined the company as its president, bringing valuable background experience
- Recent article cites low production costs and high yields per square foot as predictors of the company’s continued success
The Flowr Corporation (TSX: FLWR), a vertically integrated Canadian company producing premium cannabis product, is expected to weather a coming supply glut over larger companies because of its low operating costs and irradiation-free products.
The up-and-coming company was featured in a recent article on The Motley Fool. The article described an upcoming supply glut in the cannabis industry, rumored to hit by 2020. A supply glut occurs when supply far surpasses demand for a product, and, typically, companies lower costs to remain competitive.
What will set The Flowr Corporation apart from the pack, writer Keith Speights predicts, is the company’s ability to maintain high yields per square foot. When competing companies are inevitably forced to drop prices in order to stay afloat, The Flowr Corporation’s already low costs will give it the competitive edge over larger companies with higher production expenses (http://nnw.fm/uWjX1).
Additionally, the company plans on continuing to increase its production yields even further, which company co-founder and chairman Steve Klein believes is the “most important [key performance indicator]” in the industry. When a company can maximize its production yield, production costs are minimized. In the upcoming year, The Flowr Corporation’s production cost is expected to be C$2.05 per gram. This competitively low cost bests those of substantial industry leaders like Canopy Growth and Tilray.
Another component to The Flowr Corporation’s success can be seen in several strategic moves as of late. On December 14, the company announced that Lance Emanuel had joined the team as its president. Emanuel brings with him career experience in highly regulated markets. As a co-founder of QuarterSpot, Inc., he helped grow the company by establishing its lending framework and leading several large business growth initiatives.
As The Flowr Corporation continues to look toward the future, it plans on becoming a competitive global player in the cannabis market. It recently acquired 19.8 percent of Holigen, a company set to obtain a license for one of the most significant cultivation facilities in the developed world. Its new facility will include an outdoor cultivation license, increasing growth capacity significantly and creating one of the lowest cost cultivation opportunities in the world. This calculated move will allow the smaller company to use its “financial strength and industry-leading cultivation expertise to gain exposure to the rapidly expanding European and Australian markets,” Vinay Tolia, Co-CEO of The Flowr Corporation, noted in a news release (http://nnw.fm/Ut7T5).
For more information, visit the company’s website at www.Flowr.ca
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