Due to the current issues with the marijuana industry, plenty of marijuana stocks have proven to be a disappointment for investors and in this regard, Flowr Corp (OTCMKTS:FLWPF) is no different. The company had its listing in September last year, but it found itself in the middle of a sector wide correction and consequently the stock offered.
Over the last month, the Flowr stock has lost as much as 30%, but analysts believe that there are still plenty of positives with regards to the company. In fact, it has rebounded recently as well. So, perhaps it is time to take a closer look at Flowr Corporation.
One of the most important factors behind the growth of a cannabis producer is its production capacity and in that regard, Flowr has the capacity to match industry leaders like Canopy Growth if it plays its cards rightly. In the company’s quarterly earnings report, Flowr reported that its production stood at 279.8 kilos, which reflects an 8% rise from its production in the previous quarter.
Additionally the sales per gram metric improved significantly as well as it rose to C$ 7.70 per gram in Q1 2019 from C$ 7.08 per gram in Q4 2018. While its own production is going fairly smoothly, it is the acquisition of Holigen Holdings Limited in June that could propel Flowr into the big time.
Due to the addition of Holigen, the yearly production at Flowr could go up to as much as 500,000 kilos when operating at full tilt and that could help it in matching the production target that industry leader Canopy Growth has set for itself.
The production facility that is going to span an area of 7 million square feet is expected to be operational later on this year. Hence, it is clear that the company is coming close to a vital event in its history and if it can stick to those deadlines then there is every chance of Flowr becoming one of the biggest cannabis producers fairly quickly.
This week, Shares of Flowr are up over 20%.