Flower One Holdings Inc. (CSE:FONE) (OTCMKTS:FLOOF), a fast-moving cannabis stock out of Nevada, was welcomed to the American OTC Markets Group last week. Flower One began trading on Wednesday morning, May 22 under the symbool “FLOOF”. They closed the week at just over the two dollar mark.
“Our success to date has led to increasing capital market interest in our unique business model, our corporate vision and our future in the U.S. cannabis market,” CEO Ken Villazor explained in Wednesday’s press release. “Being upgraded to the OTCQX Market increases our exposure and accessibility to the U.S. markets, providing further liquidity for our shareholders as we continue to build out our leadership position in the Nevada market and then beyond.”
This uplisting comes exactly one month after Flower One closed their $50 million public offering, giving the company the leverage they needed to flourish in Nevada’s markets. The cannabis stock is using the investment to develop and expand their existing production facilities in the state. Flower One acquired a new facility and operations team from NLV Organics, Inc in October of last year, a move that provided the stock with a 25,000 square foot facility, up to nine state cannabis licenses, and supply relationships with over thirty dispensaries.
A closer look at Flower One’s production potential
In the company’s corporate update published last month, Flower One disclosed the latest on their other facilities, including the soon-to-be largest greenhouse cannabis cultivation facility in Nevada. The company is nearly done retrofitting the commercial greenhouse for hydroponic cannabis cultivation and have already rooted 100,000 marijuana cuttings. Once complete, the facility will produce 140,000 pounds of cannabis every year.
A 55,000 square foot post-harvest facility built for pruning, extraction, and packaging is also under construction. The wetting line, pruning line, and high-tech cell cutting room are all complete, and the company is beginning the internal construction that will eventually support Flower One’s extraction and packaging technology. The company aims to finish in time for the harvest coming from Flower One’s flagship cultivation facility this summer.
Overall, the cannabis stock is looking at a total of 455,000 square feet of cultivation and production space, making them one of the largest producers in Nevada’s market. And Nevada’s market is one of the most lucrative in the United States, with a billion dollar market potential by 2021 and absolutely no production limit for licensed producers. This puts Flower One in a very comfortable space with a lot of room for growth, both physically and financially. If they can maintain their momentum and continue investing in their production, as well as their brand portfolio, Flower One could be a sure bet for investors willing to wait.
A closer look at Flower One’s portfolio
Successfully standing out in a market as big and as diverse as Nevada’s involves building a strategic roster of brands. With their goal to become a leading brand-fulfillment operator in the Silver State, Flower One is already busy boosting their portfolio with eight different brands that touch on each kind of consumer market, from vape technology to edibles to traditional flower and pre-rolls.
Flower One is in partnerships with the California-based Palms and Old Pal brands to release a line of pre-rolls for the experienced consumer. Their partnerships with Flyte Concentrates and Grenco Science gives them a strong presence in the vape market. But one of the company’s more lucrative endeavors is their partnership with Colorado-based CannAmerica Brands. On top of designing new packaging for the CannAmerica’s line of Fruit Juice and Soft Gummies, the two will be developing three new flavors of gummies that come with new and improved cannabis formulas.
Flower One is also bringing cannabis brands from Colorado and Arizona into Nevada’s market space in a strategy the company sees as a way to give these local brands an opportunity to play on the national level. Having a retail presence in Las Vegas alone is almost enough to bring a cannabis brand out of obscurity, but doing so with a locally licensed producer like Flower One brings with it a sense of legitimacy this industry craves, especially in American markets.
Cannabis investors take note: Flower One is situating themselves at the forefront of the cannabis industry in the United States, meaning that when and if cannabis is federally legalized across the country, Flower One will be a local company readily prepared to take on the national, if not global, competition.