Flower One Reports Fourth Quarter and Year End 2020 Results

Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE: FONE) (OTCQX: FLOOF) (FSE: F11), the leading cannabis cultivator and producer in Nevada, today reported its financial and operating results for the fourth quarter and fiscal year ended December 31, 2020. All amounts are in U.S. dollars unless indicated otherwise.

“2020 was a transformational year during which we began to make a number of the operational improvements that positioned us for success going into 2021. While we have made tremendous strides over the past year, we recognize the hard work that lies ahead of us and are very excited for the future of Flower One,” said Kellen O’Keefe, Flower One’s President & Interim CEO.

Full Year and Fourth Quarter 2020 Highlights:

• FY-2020 revenue was $34.2M, representing sequential year-over-year growth of 260% as compared to FY-2019;
• Q4 2020 revenue was $9.6M, representing quarterly growth of 66% as compared to Q4 2019;
• The Company successfully launched Cookies and 22Red products into the Nevada market;
• Brand partners Cookies, Old Pal, Kiva and the Company’s in-house brand, NLVO, were recognized throughout the year as the top selling brands in their respective product categories, and
• The Company added Nitin Kaushal and Salpy Boyajian to its Board of Directors.

Highlights Subsequent to Year-End:

• Q1 2021 Guidance: The Company announced its first quarter 2021 preliminary unaudited revenue guidance of more than $13.5M, surpassing the Company’s previous record quarter of $11.5M in the third quarter of 2020. The Company expects to announce the results of its first quarter 2021 on or before July 5, 2021.
• Completion of Restructuring Transaction: The Company announced on April 14, 2021 the approval of its convertible debenture resolutions and corresponding debenture amendments (the “Debentures”). As a result of the approved amendments, the Company has exercised its right (the “New Conversion Right”) to convert 60% of the principal amount of the Debentures for units comprised of one common share and ⅚ of a warrant (each, a “Unit”), resulting in the total principal amount of the 9.5% unsecured debentures due March 28, 2022 being reduced from CAD$42,471,000 to CAD$16,988,400; and, the total principal amount of the 9.5% unsecured convertible debentures due November 15, 2022 being reduced from CAD$9,276,000 to CAD$3,710,400.
• Updates to Executive Team and Board of Directors: Salpy Boyajian was appointed to Executive Vice President and Kellen O’Keefe was appointed to President and Interim CEO, and joined the Board of Directors along with Mitchell Kahn and Eliza Gairard, further advancing the Company’s corporate governance.

The Company’s 2020 year-end audited financial statements and accompanying management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on June 11, 2021 and available on Flower One’s website at www.flowerone.com/investors/financial-reports, along with its 2020 annual report.