FLWR stock is bouncing back this morning after The Flowr Corporation (TSXV:FLWR) (OTCPK:FLWPF) reported a profit in the second quarter.
The past few months have not been that great for cannabis stocks, but that doesn’t mean that companies have stopped bothering about future growth. One cannabis company that has made a range of interesting moves over the course of 2019 is Flowr Corporation, and in a new development, the company announced that it continued to raise its production capabilities in Q2 2019.
In the second quarter, the net revenues generated by Flowr Corporation stood at $2.2 CAD million. During the same quarter, Flowr also constructed a research and development facility at the Kelowna Campus. For this initiative, Flowr spent $7.2 CAD million, and it is believed that the facility will further help to boost the company’s production capacity.
However, it is the company’s continued rise in production that is the hot topic. In Q2 2019, the total cannabis produced by Flowr stood at 460 kilos, which reflects a highly impressive jump of 61% from the 280 kilos that was produced in the prior-year period.
At the time of writing, FLWR stock is trading higher by 5.50% at $3.21.
In addition to that, Flowr managed to generate profits of $11,010 CAD, which is also a remarkable turnaround from the prior-year quarter, when it generated a net loss of $3,632.
As a company, Flowr has decided on a unique strategy to gain a foothold in the market, and if the recent financial results are anything to go by, then it is working. The company is fully in the premium grade cannabis market, and so far, the company has not faced any significant competition in this regard. Additionally, it runs an extremely efficient operation, and if the projections made by Flowr are anything to go by, then there are reasons for investors to get excited.
The company has stated that at its Kelowna campus, it hopes to generate 300 grams of produce for every square foot. If it manages to hit that target, then it would comfortably have the highest yield in the entire industry.
After the quarterly earnings, FLWR stock could be on one’s watch list in the coming sessions.
Featured image: DepositPhotos © stevanovicigor