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 December 31, 2020. The financial highlights disclosed in this press release are management prepared and have not been audited or reviewed by the Company’s auditors. Unless otherwise indicated, all amounts are expressed in U.S. dollars.
Financial Highlights, December 2020
Bluma Wellness is pleased to provide the following sales and financial highlights from the month of December 2020:
- Gross Revenue1: $3,189,330
- Revenues less cost of sales before fair value adjustments: approx. $1,207,000 or 54.5% of net revenue
- Gross Price Per Pound2: $8,588.54
- Ounces of Dried Medical Cannabis Flower Sold: 5,830 oz
- Milligrams (mg) of tetrahydrocannabinol (THC) Sold: 5,898,861 mg
During the month of December, One Plant Florida, the Company’s wholly-owned, licensed operating subsidiary, averaged sales of 855 ounces of dried medical cannabis flower per retail dispensary, and 983,144 mg of distillate/oil sold per retail dispensary. One Plant Florida’s December sales of distillate/oil per retail dispensary represent a more than 21% increase over the company’s per-dispensary November sales of distillate/oil. One Plant Florida’s December sales positioned it second in ounces of dried medical cannabis flower sold per retail dispensary when compared against all other Medical Marijuana Treatment Centers (“MMTCs”) in Florida, maintaining One Plant Florida’s standing for the third consecutive month, and eighth in mg of THC sold per retail dispensary when compared against all MMTCs in Florida, in each case according to published data from the Florida Office of Medical Marijuana Use (“OMMU”).
THC Sold (mg)/average oz sold per retail dispensary compared to competitors, December 20203
- Trulieve: 1690 oz of dried medical cannabis flower / 2,993,820 mg of THC sold per dispensary, number one in average ounces of medical cannabis flower sold per dispensary
- One Plant Florida: 855 oz of dried medical cannabis flower / 983,144 mg of THC sold per dispensary, number two in average ounces of medical cannabis flower sold per dispensary
- GrowHealthy: 679 oz of dried medical cannabis flower /1,850,301 mg of THC sold per dispensary, number three in average ounces of medical cannabis flower sold per dispensary
- AltMed Floridat (MuV): 637 oz of dried medical cannabis flower / 2,309,803 mg of THC sold per dispensary, number four in average ounces of medical cannabis flower sold per dispensary
- Harvest: 634 oz of dried medical cannabis flower / 908,574 mg of THC sold per dispensary, number five in average ounces of medical cannabis flower sold per dispensary
- GTI: 554 oz of dried medical cannabis flower / 716,602 mg of THC sold per dispensary, number six in average ounces of medical cannabis flower sold per dispensary
- Surterra Wellness: 543 oz of dried medical cannabis flower / 1,926,432 mg of THC sold per dispensary, number seven in average ounces of medical cannabis flower sold per dispensary
- Curaleaf: 456 oz of dried medical cannabis flower /1,700,791 mg of THC sold per dispensary, number eight in average ounces of medical cannabis flower sold per dispensary
Looking Ahead (Winter 2021)
Bluma Wellness is pleased to announce that One Plant Florida opened its seventh retail dispensary and delivery hub location in the State of Florida, in Fern Park (Orlando), on December 27, 2020. The retail dispensary is located at 134 Fernwood Boulevard, Fern Park, FL 32730. The Fern Park retail dispensary and delivery hub’s central location will allow One Plant Florida to serve qualified patients throughout the Orlando area using its innovative delivery and curbside pickup network.
Bluma Wellness intends to open additional One Plant Florida retail dispensaries and/or delivery hubs in Bonita Springs (Naples) (February 2021), North Miami (April 2021), Fort Lauderdale (May 2021), Oakland Park (June 2021) and Tallahassee (late June 2021), in each case subject to the receipt of all required municipal and regulatory approvals, including from the OMMU.
On January 14, 2021, the Company announced the entering into of a definitive agreement with Cresco Labs Inc. (CSE:CL) (OTCQX: CRLBF) (“Cresco Labs”) dated January 13, 2021 (the “Agreement”), one of the largest vertically integrated multi-state cannabis operators in the United States, pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Bluma Wellness in an all-share transaction that values Bluma Wellness at an equity value of $213 million (the “Transaction”). For more information on the terms of the Agreement, please see the Company’s news release dated January 14, 2021. Subject to the receipt of all required approvals, the Transaction is expected to be completed by the start of the second quarter of 2021.
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 planned opening of additional One Plant Florida retail dispensaries and delivery hubs in Florida, the completion of the Transaction 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.