- 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://cnw.fm/WPt3x).
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://cnw.fm/2yMf5).
For more information, visit the company’s website at www.Flowr.ca
More from CannabisNewsWire
About CBDWire
CBDWire (CBDW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CBDNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CBDW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CBDW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CBDW brings its clients unparalleled visibility, recognition and brand awareness. CBDW is where news, content and information converge.
CBDWire is at the epicenter of the Cannabis Revolution.
To receive instant SMS alerts, text CBDWire to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.cbdwire.com
Please see full terms of use and disclaimers on the CBDWire website applicable to all content provided by CBDW, wherever published or re-published: https://CBDWire.com/Disclaimer
CBDWire (CBDW)
Denver, Colorado
cbdwire.com
303.498.7722 Office
Editor@CBDWire.com
