The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) Set to Turn Shoppers Drug Mart Alliance, High Production Yields into Cannabis Market Magic

January 14, 2019 12:45:11
  • Shoppers Drug Mart, Canada’s largest pharmacy chain, will serve as the exclusive direct-to-patient online outlet for Flowr’s premium medical cannabis
  • Flowr previously set a standard with Hawthorne Gardening and Holigen Ltd. partnerships
  • Flowr’s high-yield growth expertise and premium product focus are expected to serve it well during anticipated cannabis supply glut and associated price drop

Premium cannabis cultivator The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF) and Shoppers Drug Mart, Canada’s largest retail pharmacy chain, recently announced a multi-year deal for Flowr to supply medical cannabis for Shoppers’ new online cannabis store. Shoppers’ e-commerce website will also be the exclusive direct-to-patient online provider of the company’s FlowrRx-branded products.

“We believe that partnering with Shoppers Drug Mart to provide patients with premium medical cannabis is a game-changing opportunity for Flowr’s medical business and we look forward to working with their team,” Flowr Co-CEO Tom Flow stated in a January 9 news release about the agreement (http://nnw.fm/VxSg5). “FlowrRx products are grown in facilities designed to pharmaceutical industry manufacturing standards and using strict processes that should enable us to provide patients with both the high quality they seek and the consistent benefits they need.”

Shoppers has about 1,300 pharmacist-owned locations from coast to coast. At this time, however, the FlowrRx products will be sold exclusively online through the e-commerce site, since Canadian regulations currently restrict the sale of medical cannabis in retail pharmacies.

Flowr’s products are grown in British Columbia’s renowned Okanagan Valley, using proprietary cultivation systems engineered to Good Manufacturing Practices (GMP) standards that allow the company to consistently generate premium, non-irradiated product at high yields. Despite the supply-line difficulties that Canada’s cannabis industry has experienced in the months since adult-use legalization last fall, analysts predict that there will soon be an oversupply of cannabis product, and that such a trend will work in Flowr’s favor.

A December report by investment advice website The Motley Fool noted that, in a low-price market, the hardiest companies are those that have low operating costs, and the key to low operating costs in the cannabis industry is to have high yields per square foot (http://nnw.fm/4ZOma).

“Flowr beats most of the major Canadian marijuana producers when it comes to crop yield,” the report states. “Its expected yield in the coming year translates to a cost per gram of 2.05 in Canadian dollars, well below Canopy Growth’s and Tilray’s cost per gram. Even better, Flowr thinks it can increase its yield and lower costs even more.”

The company’s emphasis on premium and ultra-premium products also puts it among a select group that employs rigorous standards to deliver a stand-out product that’s likely to draw discerning consumers. Its potential attracted Scotts Miracle-Gro subsidiary Hawthorne Gardening, which entered into a research-and-development partnership with the company in March 2018 and broke ground on North America’s first research and development facility dedicated to advancing cannabis cultivation techniques and systems in October (http://nnw.fm/xCi1Q).

The Hawthorne Gardening partnership made Flowr one of only three Canadian cannabis companies with a business partnership with a publicly traded U.S. company at the time.

“We chose to work with Flowr due to their ability to grow quality, consistent plants,” Hawthorne Gardening Senior Vice President and General Manager Chris Hagedorn stated in announcing the groundbreaking partnership. “Dedicated to innovation, this first-of-its-kind research facility will help to optimize our entire array of products, from lighting to nutrients and environmental controls, and put us in the unique position to help our customers, no matter their size and scale, get the result they seek with even more precision.”

In addition, the December announcement that Flowr had acquired a 19.8 percent share of Holigen Ltd., and signed an intellectual property sharing agreement with the international medical cannabis license-holding company, further portends the company’s potential beyond Canada’s borders (http://nnw.fm/zG6mB).

For more information, visit the company’s website at www.Flowr.ca

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