Fiore Cannabis: A Small Customer-focused Team Executes an Impressive Turnaround
Ryan Allway
April 12th, 2021
App, Exclusive, News, Top Story
The cannabis industry followed a familiar and predictable path over the past few years. In the early years, companies raised significant amounts of capital to build massive indoor cultivation operations in an attempt to scale at all costs. A handful of companies succeeded but most shut down due to a lack of capital, poor product quality or a combination of factors.
Fiore Cannabis Ltd. (CSE: FIOR) (OTCQX: FIORF) has been investing in the development of medical and recreational cannabis products since 2014, but recently, it began an ambitious turnaround aimed at achieving profitable growth. After divesting its Washington and British Columbia assets, the company has achieved a positive adjusted-EBITDA with its core California and Nevada assets in the beginning of the year.
Let’s take a closer look at the company’s impressive turnaround thus far and why investors may want to take a closer look at the stock right now.
Click here to receive an investor deck and corporate updates
Narrowing the Focus
By selling non-core assets, Fiore’s management team raised non-dilutive capital to invest in California and Nevada where the company can deliver top-quality products to a rapidly growing customer base. The narrower focus will help the team build out higher margin businesses with more growth potential.
CEO Erik Anderson discusses his management team
The company’s partnership with Allied Corp. (OTCQB: ALID) is a prime example of its lean approach. In March, the company closed a deal to sell a surplus cultivation license for its Apex cannabis cultivation and production facility in Las Vegas for US$1.5 million in cash—a sum that it will use to accelerate its Apex expansion.
As part of the deal, Allied will make the license productive and generate benefits for both companies over the long-term. Fiore will assist with the genetics and selection of cannabis strains for Allied’s operation, as well as consult on the marketing of products through Fiore’s established medical and retail partnerships—a high-margin opportunity for Fiore. At the same time, Fiore will use the proceeds of the sale to expand its own Apex facility and increase its cultivation footprint from 10,000 sq. ft. to about 80,000 sq. ft.
Quality Before Scale
The management team behind Fiore Cannabis has always prioritized quality over scale. Rather than building a huge footprint with a single master grower overseeing 100,000+ sq. ft., the company has started with a 10,000 sq. ft. facility that it’s incrementally growing out with the goal of one master grower for every 10,000 sq. ft. to ensure craft quality.
CEO Erik Anderson shares Fiore’s plans to grow
The company cultivates specific genetics using state-of-the-art processes and grows its products in small batches in organic living soil. Small batches enable the company to maintain quality and minimize losses, while the company cures its end product instead of using a more traditional dehydration method, creating a fresher end result for consumers.
As evidence of its focus on producing top-quality products, the company’s Fiore Super Glue won first place at the 2019 Las Vegas High Times Cannabis Cup. The Indica-dominant strain had the highest THC results from the harvest at 26.73% along with over 20mg of total terpenes, providing a very sticky feel with an impressive terpene profile.
Click here to receive an investor deck and corporate updates
Profitability & Growth
Fiore Cannabis achieved a positive adjusted-EBITDA in January, marking a key milestone in its turnaround. The company experienced a positive harvest for the month while its Green Leaf Wellness dispensary in Desert Hot Springs posted an operational cash flow positive result due to decreases in payroll costs, preferred pricing from vendors, and other efforts.
Fiore Cannabis Apex Facility – Source: BNN Bloomberg
The company plans to build out its Apex facility in Nevada to approximately 50,000 sq. ft. over the coming year, which could significantly expand its annual revenue run rate. In the meantime, the company hopes to achieve a positive adjusted EBITDA from operations during the first quarter of 2021 from its operations in Nevada and California.
While the company is open to accretive M&A opportunities, management’s focus is firmly on maintaining a portfolio of high-margin products, keeping its costs and CapEx low and growing at a sustainable and profitable pace over time. These characteristics set it apart from many other cannabis companies and pave the way toward long-term shareholder value.
Looking Ahead
Fiore Cannabis Ltd.’s (CSE: FIOR) (OTCQX: FIORF) focus on high-quality and high-margin products along with diligent cost management will keep it on the course to profitable growth. Investors interested in a profitable and growing multi-state operator may want to take a closer look at the stock as management continues to execute its turnaround.
For more information, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Matt Hawkins is the founder and managing principal of Cresco Capital Partners, LLC (“Cresco”), a private equity firm focused specifically on investing in the legalized cannabis industry. Since its inception in the summer of 2015, Cresco has made 14 investments out of its first fund and is currently raising this fund, Fund II. Prior to the […]
Watch CFN Media’s exclusive three part interview with Paul Rosen, one of the most active and diversified investors in the emerging cannabis industry. Paul gives his insights on the global cannabis industry and discusses his new endeavors. Become a CFN Media Client Paul Rosen is a noted career entrepreneur and management consultant. Over the last […]
AYR Strategies was created as a special purpose acquisition corporation incorporated under the laws of the Province of Ontario that acquired five subsidiaries.
Flora is building a connected, design-led collective, of plant-based wellness and lifestyle brands, that delivers the most compelling customer experiences in the world, one community at a time.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
