Become A Featured Company

Fiore Posts Strong Q1 Performance as Restructuring Pays Off

Ryan Allway

April 30th, 2021

App, Exclusive, News, Top News

 

The cannabis industry reached US$22.9 billion in 2020, according to ReportLinker, which projects that it will grow at an 18.1% compound annual growth rate through 2026. In the U.S., the Biden administration promised to pursue cannabis decriminalization as a number of new states have moved to legalize medical and/or recreational cannabis.

Fiore Cannabis Inc. (CSE: FIOR) (OTCQX: FIORF) is a global cannabis pioneer that has narrowed its focus to California and Nevada. After divesting its Washington and British Columbia assets, the company has accelerated its revenue growth and achieved a positive adjusted-EBITDA—a rare and significant achievement in a market that has struggled to mature. 

Strong Q1 2021 Performance

Fiore Cannabis recently reported preliminary first-quarter financial results where management projected that revenue will rise 110% sequentially and 140% year-over-year to US$850,000. The team attributed the strong performance to new revenue contributions from its Apex cultivation and production facility in Las Vegas, Nevada beginning in 2021.

On the bottom line, the company expects a first-quarter profit margin of about 40 percent based on the cost of cannabis per gram during the fourth quarter of last year. The company’s products have achieved a premium position in Nevada due to its organic flower that boasts high THC levels, which continue to provide strong profit margins into 2021.

“We are very pleased with how our revenue has accelerated in 2021 and it appears we will exceed our own internal expectations for the quarter,” said President and CEO Erik Anderson in a press release announcing the results. “Our focused execution against the commitment to deliver positive adjusted EBITDA will continue each quarter this year.”

Full first-quarter financial results are expected on or before May 31, 2021.

Narrowing Focus to U.S. Assets

Fiore Cannabis also continues to make progress in refocusing its operations on core U.S. markets. In April, the company announced that it terminated a letter of intent with Indigenomix International and signed a memorandum of understanding with PECA Properties to transfer ownership of its British Columbia assets and two of its wholly-owned subsidiaries. 

According to CEO Erik Anderson, the transaction cleans up the company’s balance sheet by eliminating $4.8 million in long-term liabilities and will enable the company to allocate additional funds to drive expansion in California and Nevada. The cancellation of the LOIs also frees up management to focus its efforts on generating attractive returns in these key markets.

“We are very pleased to have completed the sale of the Celista asset as it does not fit with the company’s strategic direction,” explained CEO Erik Anderson. “We continue to expand upon our operations in Las Vegas and the Coachella Valley and focus our energies on where we are generating revenues and profitability, producing top-quality cannabis products.”

The company’s core areas of focus—Las Vegas, Nevada and Palm Springs, California—are well known for their tourism and cannabis industries. Las Vegas attracts more than 40 million tourists each year as the country’s premier tourist destination. At the same time, Palm Springs is a tourism destination in its own right and is also strategically located near the Coachella Valley—the U.S. hub for cannabis innovation.

What It All Means for Investors

The cannabis industry has long been characterized by relentless expansion into new markets. When the industry experienced a downturn, many companies that stretched their balance sheets were forced to sell, shutdown or restructure. Today’s cannabis investors have become a lot more focused on revenue growth and profitability as the market matures.

Fiore Cannabis is one of the few companies to have successfully navigated the market’s transition from growth to stability. By selling non-core assets, the company’s management team raised non-dilutive capital that it has invested into core California and Nevada assets that are now generating strong revenue growth and a positive EBITDA.

The team has always been focused on producing top-quality products with attractive margins. At the same time, the Apex facility buildout in Nevada is expected to add approximately 50,000 sq. ft. of capacity over the coming year, which will meaningfully improve its revenue run rate. The combination of growing revenue and strong margins should grow long-term shareholder value.

Looking Ahead 

Fiore Cannabis Inc. (CSE: FIOR) (OTCQX: FIORF) has made tremendous progress in refocusing its operations on core markets, driving revenue growth, and improving its bottom line. Cannabis investors may want to take a closer look at the stock as it ramps up revenue growth over the coming year with its new Apex facility in Nevada.

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.

Network Partners

Follow Us on Social Media

LinkedIn

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

loading