Wildflower Reports 400% Revenue Increase
December 19th, 2019
VANCOUVER, British Columbia, Dec. 18, 2019 (GLOBE NEWSWIRE) — via NetworkWire: Wildflower Brands Inc. (CSE: SUN, OTC:WLDFF) (the “Company”) is pleased to announce revenue for the fiscal year ending June 30, 2019 of $7.1M – a 400% increase over revenues of $1.4M in 2018. The Company began aggressively marketing its CBD Wellness products during the fiscal year, culminating with the launch of its products in June 2019 at Dillard’s, an American department retail chain with over 290 stores in 29 states.
Highlights for the year ending June 30, 2019 (with comparisons to the prior year except as otherwise noted) include the following:
- Sales of $7,085,223 (2018: $1,408,114), including licensing fees from sales through our partner in the Washington State I-502 market, US nationwide e-commerce sales, nationwide US wholesale sales and from the sales in California State’s regulated market through the licenses held there;
- Cost of goods sold of $3,927,086 (2018: $915,997) related to the cost of the products and packaging sold during the year;
- Wages and benefits of $1,515,177 (2018: $175,669) related to wages and related benefits paid to employees;
- Consulting fees and management fees of $978,018 (2018: $473,735) related to fees paid to the Company’s CEO, CFO, COO and board of directors, as well as individuals providing business consulting services;
- Advertising and marketing costs of $384,616 (2018: $313,068) related to advertising and marketing campaigns for the Company’s cannabis products, as well as funds expended toward the branding of the retail locations in Manhattan under its Retail Worx agreement;
- Investor relations and shareholder communications of $691,532 (2018: $393,420) related to fees paid to investor relations personnel and costs associated with public relations;
- Legal fees of $626,213 (2018: $59,015) related to general corporate matters and acquisitions, including the acquisition of City Cannabis Corp.;
- Bad debt expense of $1,198,808 (2018: $Nil) to recognize an allowance for doubtful accounts related to trade receivables;
- General office and miscellaneous expenses of $430,393 (2018: $166,621) related to office supplies and incidental expenditures for the Company’s Vancouver-based office, Washington State subsidiary office, and Californian subsidiary office;
- Share-based payment expense of $331,222 (2018: $1,924,750) related to the fair value of incentive stock options granted during the year;
- Rent of $331,269 (2018: $101,191) related to office space in Vancouver and Washington State;
- Travel and accommodation of $182,336 (2018: $117,342) related to travel for business activities;
- Write off of loan receivable of $179,867 (2018: $173,236) as the Company deemed the amounts to be unrecoverable;
- Interest expense of $901,406 (2018: $129,770) related to the interest accrued on the loans payable, promissory notes and convertible debentures issued during the period;
- Gain on agreement revision of $810,262 (2018: $Nil) representing the difference in book value of the property and equipment deemed to have been disposed of under an industrial lease agreement and the present value of the lease obligations for the same property; and
- Exchange difference of $321,616 (2018: $454,657) related to translating the transactions of the Company’s foreign subsidiaries with a functional currency other than the Canadian dollar.
ABOUT WILDFLOWER BRANDS
The Company is a Vancouver-based pioneer in the cannabis industry that develops, designs and operates brands throughout North America. Our brands work together to make Wildflower a leader in cannabis innovation throughout the globe. The Company operates British Columbia’s largest retail cannabis chain under the brand City Cannabis Co.
On Behalf of the Board of Directors
Director and CEO
The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.
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