Bluma Wellness Subsidiary One Plant Florida to
Open Eighth Retail Dispensary, in Bonita Springs, FL, on March
12
Bluma Wellness Inc. (the “Company” or “Bluma
Wellness”) (CSE: BWEL.U) (OTCQX:BMWLF) is pleased to provide
its patients and investors with an end-of-month sales and
operations report for the month ended February 28, 2021. 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, February
2021
Bluma Wellness is pleased to provide the following sales and
financial highlights from the month of February 2021:
- Gross Revenue1: $2,733,756
- Revenues less cost of sales before fair value adjustments:
approx. $1,125,000
- Gross Price Per Pound2: $8,817.79
- Ounces of Dried Medical Cannabis Flower Sold: 4,704.46 oz
- Milligrams (mg) of tetrahydrocannabinol (THC) Sold: 6,205,730
mg
During the month of February, 3 Boys Farm, LLC, doing business
as One Plant Florida (“One Plant Florida”), the Company’s
wholly-owned, licensed operating subsidiary, averaged sales of 672
ounces of dried medical cannabis flower per retail dispensary, and
886,533 mg of distillate/oil sold per retail dispensary. One Plant
Florida’s February sales positioned it third in ounces of dried
medical cannabis flower sold per retail dispensary when compared
against all other Medical Marijuana Treatment Centers
(“MMTCs”) in Florida, and ninth 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”).
Additionally, Bluma Wellness is pleased to share that One Plant
Florida closed the month of February with $461,000 in gross revenue
between Friday, February 26 and Sunday, February 28.
THC Sold (mg)/average oz sold per retail
dispensary compared to competitors, February 20213
- Trulieve: 1,432 oz of dried medical cannabis flower /
4,557,160 mg of THC sold per dispensary, number one in average
ounces of medical cannabis flower sold per dispensary
- Grow Healthy: 936 oz of dried medical cannabis flower /
1,882,693 mg of THC sold per dispensary, number two in average
ounces of medical cannabis flower sold per dispensary
- One Plant: 672 oz of dried medical cannabis flower /
886,533 mg of THC sold per dispensary, number three in average
ounces of medical cannabis flower sold per dispensary
- Surterra Wellness: 643 oz of dried medical cannabis
flower / 1,972,197 mg of THC sold per dispensary, number four in
average ounces of medical cannabis flower sold per dispensary
- Harvest: 621 oz of dried medical cannabis flower /
1,341,494 mg of THC sold per dispensary, number five in average
ounces of medical cannabis flower sold per dispensary
- GTI: 523 oz of dried medical cannabis flower / 630,475
mg of THC sold per dispensary, number six in average ounces of
medical cannabis flower sold per dispensary
- Curaleaf: 503 oz of dried medical cannabis flower /
1,641,869 mg of THC sold per dispensary, number seven in average
ounces of medical cannabis flower sold per dispensary
- AltMed Florida (MuV): 490 oz of dried medical cannabis
flower / 2,300,998 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
expects to open its eighth retail dispensary and delivery hub, to
be located in Bonita Springs, FL, on March 12, 2021, subject to the
receipt of all required municipal and regulatory approvals,
including from the OMMU. The retail dispensary will be located at
28500 Bonita Crossings, Bonita Springs, FL, 34135.
One Plant Florida opened its seventh retail dispensary and
delivery hub location in the State of Florida, in Fern Park
(Orlando), in December 2020.
Bluma Wellness intends to open additional One Plant Florida
retail dispensaries and/or delivery hubs in 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.
Shareholder Meeting
As previously announced, the Company will hold a special meeting
of its shareholders (“Bluma Shareholders”) to be held
virtually at https://web.lumiagm.com/294537536, beginning at 10:00
a.m. (Toronto time) on March 19, 2021 (the “Meeting”). The
Meeting is being held to consider and approve, among other things,
the Company’s proposed arrangement with Cresco Labs Inc.
(“Cresco”) (CSE:CL) (OTCQX:CRLBF) to be completed by way of
a plan of arrangement under Division 5 of Part 9 of the Business
Corporations Act (British Columbia), pursuant to the arrangement
agreement entered into between the Company and Cresco on January
13, 2021. The Meeting will be held in accordance with the terms of
an interim order of the Supreme Court of British Columbia obtained
on February 11, 2021. Bluma Shareholders of record at the close of
business on February 8, 2021 will be entitled to attend and vote at
the Meeting.
For more information about the Meeting, please see the Company’s
news release dated February 26, 2021 and the management information
circular of the Company dated February 12, 2021 (the
“Circular”). The Circular and related meeting materials are
available on the Company’s SEDAR profile at www.sedar.com.
Settlement Agreements
The Company also announces that it has agreed to settle certain
contractual claims made by certain arm’s-length third parties (the
“Claimants”) in the State of Florida against the Company and
its indirect, wholly-owned subsidiaries Cannabis Cures Investments,
LLC (“Cannabis Cures”) and, in certain cases against One
Plant Florida, relating to legacy obligations that flowed from an
indemnification agreement entered into by Cannabis Cures in
December 2018, in connection with Cannabis Cures’ acquisition of
100% of the membership interests and assets of One Plant Florida
(the “Contractual Claims”). One of the Claimants also
asserted claims relating to the alleged breach of an employment
agreement entered into between the Claimant and One Plant Florida
in August 2018 (together with the Contractual Claims, the
“Claims”). The Company vehemently opposes the Claims, and
was prepared to litigate both the Claims and its own counterclaims,
however in the interests of avoiding costly, burdensome and
distracting litigation, the parties elected to amicably resolve the
Claims. In accordance with the terms of binding settlement
agreements entered into between the Company, the Claimants,
Cannabis Cures, and in certain cases One Plant Florida, among other
parties (the “Settlement Agreements”), the Company will
settle the Claims for the aggregate net amount of US$3,639,564.71,
of which US$1,840,860.39 will be paid in cash and US$1,798,704.32
will be satisfied by the issuance of 1,605,986 Common Shares to the
Claimants at a deemed price of US$1.12 per Common Share, in full
and final satisfaction of the Claims. Pursuant to the terms of the
Settlement Agreements, each of the parties has agreed to a mutual
release of claims and the Claimants have agreed to dismiss all
Claims against the Company and its subsidiaries with prejudice or
have promised not to file a complaint in respect of such Claims, as
applicable.
The Common Shares issued to the Claimants pursuant to the
Settlement Agreement will be subject to a statutory hold period
which will expire four months and one day from the date of issuance
in accordance with applicable securities laws.
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.
Additional Information
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.
Forward-Looking Information
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,
information relating to the date, time and format of the Meeting,
the business to be conducted at the Meeting, the settlement and
dismissal of the Claims, the issuance of the Common Shares to the
Claimants 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.
1 IFRS 2 Gross Price per Pound is calculated as total revenue
divided by total pounds of dried medical cannabis flower sold. 3
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For additional information on the Company: Brady
Cobb Chief Executive Officer Telephone: (877)
308-3344 Email: Brady@oneplant.us
For Media Inquiries and Investor Relations, Please
Contact: Daniel Nussbaum AMW PR Telephone:
(917) 232-8960 Email: Daniel@amwpr.com