LOS ANGELES and DESERT HOT SPRINGS, Calif., May 25, 2021 (GLOBE NEWSWIRE) — via InvestorWire — Grapefruit USA, Inc., (“GPFT,” “Grapefruit” or the “Company”) (OTCQB: GPFT) a California based cannabis company, announces that in its quarterly report on Form 10-Q for the three months ended March 31, 2021, filed with the SEC on May 24, 2021, the Company reported net revenues of $350,815, a decrease of 10% over revenues of $393,559 for the three months ended March 31, 2020. This decrease in revenues was caused by a very strong cannabis harvest in the fourth quarter of 2020 and early 2021 which drove down wholesale cannabis prices significantly and limited the profitability of our distribution and trading operations. As a result, the Company prudently limited such activities and concentrated its efforts more acutely on improving upon and launching its Hourglass products which will result in significantly higher Hourglass related revenues through the final three quarters of 2021 and into 2022. For a full analysis of the Company’s results of operations see the Company’s Form 10-Q at pages 3-6 and 19-21.
With respect to Grapefruit’s 2021 first quarter report, Bradley J. Yourist, Grapefruit CEO, stated, “We are obviously dissatisfied with the small revenue decrease year over year for the first quarter. However, we adjusted by decreasing our less profitable distribution and trading activities which we can switch on at a moment’s notice when the seasonal aspect of the wholesale cannabis business adjusts, and profitable distribution and trading opportunities present themselves during the remainder of the year as they inevitably do. Furthermore, as our wholesale and retail Hourglass THC/cannabinoid and THC-free hemp derived CBD products sales take off in the remainder of 2021 and beyond, the increased revenues they generate will mitigate the overall revenue impact of the seasonality of the distribution and trading operations. Getting to that point as quickly as possible is one of our primary goals and as we always do, we will attain it in the near future. The overall superiority of the Hourglass family of products in terms of bioavailability and time release characteristics should assure our customers and shareholders alike that Grapefruit will be one of the leading fully integrated cannabis companies in the world. We also expect the recent opening of our ecommerce site and the introduction of our affiliate program to jump start Hourglass hemp derived CBD product revenues. One mediocre quarter, caused by factors largely beyond our control, will not derail us because Hourglass is the future of cannabis.”
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Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products in the Golden State. Grapefruit’s extraction laboratory and manufacturing and distribution facilities are located in the industry-recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Road, approximately 14 miles north of downtown Palm Springs. To obtain further information on Grapefruit and its operations, please visit the Company’s website at https://grapefruitblvd.com/.
Safe Harbor Statement
Grapefruit cautions that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the Company may not ever obtain additional funds necessary to support its business development and growth plans; and the Company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, its Quarterly Report on Form 10-Q for the period ended March 31, 2021, and its Registration Statement on Form S-1/A. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
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