VANCOUVER, British Columbia, March 03, 2020 (GLOBE NEWSWIRE) — via NetworkWire – Wildflower Brands Inc. (CSE: SUN, OTC:WLDFF) (the “Company”) announces more than $5.5M in revenues in its second quarter, compared to $1.4M in the previous year’s second quarter and $6.3M in the first quarter. Revenues were expected to be down due to the Robson store having to close in order to move to its newly renovated, licensed 2,800 square foot facility at Robson and Granville. This was the first cannabis retail license the regulators moved in British Columba. Further, revenues were expected down due to a steep drop in vape sales due to the vapegate crisis.
Highlights for the quarter ending December 31, 2019 (with comparisons to the prior quarter except as otherwise noted) include the following:
- Revenues of $5,514,502 (Q2 2018: $1,410,135), including sales in British Columbia’s provincially regulated cannabis market, US nationwide e- commerce sales, nationwide US wholesale sales and from the sales in California’s State’s regulated market through the licenses held there;
- Cost of goods sold of $2,705,797 (Q1 2018: $810,698) related to the cost of the products and packaging sold during the period;
- Wages and benefits of $889,613(Q2 2018: $296,889) related to wages and related benefits paid to employees;
- Consulting fees and management fees of $192,543 (Q2 2018: $211,656) 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 $107,808 (Q2 2018: $8,557) related to advertising and marketing campaigns for the Company’s cannabis products;
- Investor relations and shareholder communications of $115,688 (Q2 2018: $12,824) related to fees paid to investor relations personnel and costs associated with public relations;
- Professional fees of $134,802 (Q2 2018: $27,410) related to general corporate matters;
- General office and miscellaneous expenses of $291,199 (Q2 2018: $73,841) related to office supplies and incidental expenditures for the Company’s Vancouver-based offices, Washington State subsidiary office, and Californian subsidiary office;
- Interest expense of $626,488 (Q2 2018: $184,097) related to the interest accrued on the loans payable, lease obligations, promissory notes and convertible debentures issued during the period;
- Foreign exchange gain (loss) of ($274,597) (Q2 2018: $627,339) related to translating the transactions of the Company’s foreign subsidiaries with a functional currency other than the Canadian dollar.
- Net gain (loss) before other items of $265,579 (Q2 2018: (299,812) related to the business operations.
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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