TORONTO--(BUSINESS WIRE)--Bluma Wellness Inc. (the “Company” or “Bluma Wellness”) (CSE: BWEL.U) is pleased to provide its patients and investors with an end-of-month sales and operations report for the month ended August 31, 2020. These financial results have not been reviewed or audited by the Company’s auditors.
Financial Highlights, August 2020
Bluma Wellness is pleased to provide the following sales and financial highlights from the month of August 2020:
- Revenue1: $1,015,554
- Gross Price Per Pound2: $6,428.66
- Ounces of Dried Cannabis Flower Sold: 2539 oz
- Milligrams (mg) of tetrahydrocannabinol (THC) Sold: 3,365,776 mg
During the month of August, One Plant Florida, the Company’s wholly-owned operating subsidiary, averaged sales of 635 ounces of dried cannabis flower per retail dispensary, and 841,444 mg of distillate/oil sold per retail dispensary. That positioned One Plant Florida seventh in ounces of dried medical cannabis flower sold per dispensary when compared against all other Medical Marijuana Treatment Centers (“MMTCs”) in Florida, and fourth in mg of THC sold per dispensary when compared against all MMTCs in Florida, in each case according to information gathered by the Florida Office of Medical Marijuana Use (“OMMU”),3 while having just four (4) retail dispensaries and delivery hubs open.
THC Sold (mg)/average oz sold per retail dispensary compared to competitors, August 20204
- Trulieve: 4,324,750 mg of THC sold / 1,590 oz of dried flower sold per dispensary, number one in average ounces of flower sold per dispensary
- Grow healthy: 670,162 mg of THC sold / 687 oz of dried flower sold per dispensary, number two in average ounces of flower sold per dispensary
- GTI: 576,634 mg of THC sold /662 oz of dried flower sold per dispensary, number three in average ounces of flower sold per dispensary
- One Plant: 841,444 mg of THC sold / 635 oz of dried flower sold per dispensary, number four in average ounces of flower sold per dispensary
- Surterra: 1,288,626 mg of THC sold /505 oz of dried flower sold per dispensary, number five in average ounces of flower sold per dispensary
- AltMed Florida (MuV): 2,448,728mg of THC sold / oz of dried flower sold per dispensary, number six in average ounces of flower sold per dispensary
- Harvest: 807,126 mg of THC sold / 433 oz of dried flower sold per dispensary, number seven in average ounces of flower sold per dispensary
- Liberty Health Sciences: 1,049,826 mg of THC sold / 432 oz of dried flower sold per dispensary, number eight in average ounces of flower sold per dispensary
- Curaleaf: 1,580,320 mg of THC sold / 396 oz of dried flower sold per dispensary, number nine in average ounces of flower sold per dispensary
- VidaCann: 741,588 mg of THC sold / 283 oz of dried flower sold per dispensary, number ten in average ounces of flower sold per dispensary
“We are proud to report a 76 percent increase in revenue between July and August of this year as a result of the execution of our supply ramp-up plan, with our new cultivation, harvest, and processing facilities in Indiantown, Florida, coming fully online over the past few weeks,” said Bluma Wellness CEO Brady Cobb. “The first dried medical cannabis flower from the new Indiantown facility reached One Plant Florida retail dispensaries on August 1. The Company expects to harvest an increasing amount of medical cannabis from the Indiantown facility and will use this supply increase as a springboard for our planned openings of new One Plant Florida retail dispensaries throughout the State through the remainder of this year, as well as for expansion of our home delivery and curbside pickup network.”
Bluma Wellness Appoints Ryan Martin as Chief Commercial Officer
Bluma Wellness is pleased to announce the appointment of alcoholic beverage industry veteran Ryan Martin as Chief Commercial Officer of the Company, effective immediately.
For the past 25 years, Mr. Martin has held numerous upper-management positions with prestigious spirits companies and wineries. Martin most recently served as Chief Sales Officer of Global Sales at Foley Family Wines, where he drove growth to more than 1.4 million cases of inventory and $220 million in revenue. Martin has also held multiple positions with E&J Gallo Winery, including leading the sales department as the National Sales Manager, On-Premise. In this position, Martin managed in excess of 8 million cases of inventory and $440 million in revenue and led the company’s strategy development, averaging in excess of 5% compound annual growth rate (CAGR) over his tenure.
As Chief Commercial Officer, Martin will be responsible for Bluma Wellness’ commercial operations including pricing architecture, branding, marketing and the implementation of sales and commercial strategies. Martin brings unique expertise to the Company in the areas of national three-tier distribution, distributor management, commercial planning, field sales management, strategic planning, brand marketing, shopper marketing, and global sales.
“The addition of Ryan Martin brings Bluma Wellness a seasoned consumer packaged goods and sales expert with deep experience in our closest competitive industry. Ryan will bolster our operations in his new role,” said Cobb. “Ryan’s addition will ensure we scale up the One Plant Florida brand properly and maintain our position as the premium medical cannabis flower company in Florida, while also refining the Company’s pricing architecture, margins, and sales initiatives to help achieve maximal growth.”
Bluma Wellness Launches ‘Alleaves’ Proprietary Seed-to-Sale and E-Commerce Software Platform
Additionally, the Company is proud to announce that One Plant Florida in August launched its own proprietary e-commerce and seed-to-sale tracking system with its technology partner, Next Choice Advisors.
The Alleaves seed-to-sale system is exclusive to the cannabis industry, and One Plant Florida is the first license holder to use the platform in Florida. Key components of the Alleaves platform include improved access to real-time data, access to forecasting and analytics tools, and enhanced e-commerce and statewide delivery management tools. Partnering with Alleaves allows One Plant Florida to further automate and scale its operations in cultivation, product development, and distribution.
“In a competitive and rapidly growing industry, the ability to scale, apply appropriate resources, and meet customer expectations is critical,” said Cobb. “In the first month alone since launching the Alleaves platform, One Plant Florida has been able to decrease order processing and fulfillment times by 30% and increase its average order price, thanks to the platform’s superior functionality in allowing qualified patients to better manage their orders. Not only does the Alleaves platform improve the customer experience, it increases margins and will ultimately foster our continued expansion without a corresponding increase in resources.”
“Previous software platforms have fallen short in true seed-to-sale tracking and actually increased the burdens on their operators with regard to manual processes and compliance, because most systems on the market were built without medical cannabis operational experiences at the forefront, much less a focus on delivery,” said Mike Bondurant, Chief Strategy Officer of Bluma Wellness. “As One Plant Florida continues to expand its development of medical whole flower cannabis, distillate, concentrates, and edible products, the Alleaves platform will give One Plant Florida the ability to scale responsibly, stay nimble, and respond to compliance and regulatory changes within the industry. The platform will also allow us to ramp up the efficiency of our retail dispensaries and expand our delivery and curbside pickup network.”
One Plant Florida intends to integrate all operations at its new 54,000 square-foot cultivation, harvesting, processing, and lab facilities in Indiantown Florida, into the Alleaves platform before the end of 2020.
Looking Ahead (Fall 2020)
One Plant Florida saw a 66 percent increase in pounds of dried medical cannabis flower sold from July to August, according to published figures from the Florida OMMU, reflecting the expansion of the Company’s cultivation footprint via the first delivery of Indiantown-harvested flower to One Plant Florida’s retail locations and delivery hubs in August.
Additionally, Bluma Wellness intends to open One Plant Florida’s fifth retail dispensary location and delivery hub in Ocala, Florida no later than September 15, 2020, pending the receipt of all required regulatory approvals from the Florida OMMU. The Company also plans to open four (4) additional One Plant Florida retail locations and/or delivery hubs in Avon Park, Orlando (Fern Park), North Miami, and Bonita Springs by the end of 2020, pending receipt of all required regulatory approvals from the Florida OMMU.
About Bluma Wellness Inc.
Bluma Wellness Inc. owns and operates a vertically-integrated, licensed medical cannabis company in the State of Florida doing business as “One Plant Florida.” One Plant Florida cultivates, processes, dispenses and retails medical cannabis to qualified patients in the State of Florida through multiple retail dispensaries and an innovative next-day door-to-door e-commerce home delivery service, thereby offering convenient access for its customers and meeting the demands of an evolving retail landscape. Bluma Wellness plans to continue expanding its cultivation and distribution operations as the Florida market grows and may enter into other US states where the production, distribution and use of cannabis is permitted under state law.
The Company’s securities have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States or to a U.S. Person absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws including information relating to the opening of One Plant Florida’s Ocala, Florida retail dispensary and delivery hub, the planned opening of additional retail dispensaries and delivery hubs in Florida and the expansion of One Plant Florida’s home delivery and curbside pickup network, the expected increased production of medical cannabis from the Indiantown facility, the integration of the Alleaves platform and the Company’s strategic business plans. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements due to a variety of known and unknown risks and uncertainties including, without limitation: risks relating to cannabis being illegal under US federal law and risks of US federal enforcement actions related to cannabis activities; the Company's ability to comply with all applicable governmental regulations in a highly regulated business; negative changes in the political environment or in the regulation of medical cannabis in the state of Florida; the risk of any disruptions to the Company’s business and operations as a result of the COVID-19 pandemic; negative shifts in public opinion and perception of the cannabis industry and cannabis consumption; increasing competition in the industry; risks of product liability and other safety-related liability as a result of usage of the Company’s cannabis products; the Company’s limited operating history with no assurance of profitability; the ability of the Company to access future financing if needed or on terms acceptable to the Company; the risk of defaulting on its existing debt; risk of shortages of or price increases in key inputs, suppliers and skilled labor; the risks inherent in running agricultural operations such as pests and crop failure; loss of licenses; reliance on key personnel; cybersecurity risks; constraints on marketing products; fraudulent activity by employees, contractors and consultants; tax and insurance related risks and risk of litigation.
The forward-looking information in this press release are made as of the date of this release. The Company does not undertake any obligation to update forward-looking information except as required by applicable securities laws.
2 Gross Price per Pound is calculated as total revenue divided by total pounds of dried medical cannabis flower sold.