I wanted to provide an update from our Flower One (FONE) investor tour we had last Friday in Vegas. Myself, Candice and about 40 other clients participated in the two-hour tour hosted by Steve Newell, president of Windset Farms.
The facility remains the largest facility in Nevada with 400,00 sq. ft. of cultivation space in the greenhouse with three vegetative zones, eight flower zones, and houses over 100,000 plants. It has been fully canopied since September and is on a continuous harvest cycle where one zone per week is harvested (approx. 10,000 cannabis plants per week). Flower One reported impressive operating metrics indicting that the greenhouse is cultivating cannabis at an average yield of 38.3 grams per sq. ft. (approx. 230 grams per sq. ft. annually) per harvest at a cash cost per harvest gram of $0.45. We believe these are industry leading metrics as we estimate Canadian Cannabis licensed producers are approx. 100 to 150 grams per sq. ft. on average, while costs at licensed producers considered to be ‘low-cost producers’ are still in the C$1.00-1.50 per gram range.
Products from Flower One’s greenhouses are sold to dispensaries and the wholesale market as finished packaged products, semi-finished products or in bulk (dry flower and trim). Flower One continues to partner with strong brands in the Nevada market. They will be selling bulk flower and semi-finished products such (such as oil and distillates) to other license holders who may package and resell under their own brands. We expect Flower One’s first priority will be to sell finished products produced under its brand partnership agreements (or its own branded products) as these will generate the highest margin.
When we visited the facility just a year ago the floor of the facility was dirt and in full construction. (November 2019)
Today, the facility is in full operation with over 350 employees, high security and a 55,000 sq. ft. production facility equipped to produce custom-packaged, seed-to-retail ready products.
Cutting cells, the beginning stages of plant.
Inspecting and transporting the plants.
Plants at full and near-full growth.
Lab inspection & drying racks.
Lab rooms & equipment. The facility should be able to produce 20,000 litres of distillate, 50,000 litres of concentrate and 60,000 pounds of wax.
Post-tour dinner, Leanne & Darren
Please call or email me if you would like to hear more about our tour.