The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF)
(“
Flowr” or the “
Company”) is
pleased to announce that it has entered into a supply agreement
(“
Supply Agreement”) with Focus Medical Herbs Ltd.
(“
Focus Medical”), a company which IM Cannabis
Corp. (NASDAQ: IMCC) (CSE:IMCC) (“
IMC”) has an
exclusive commercial agreement with in Israel. Pursuant to the
terms of the Supply Agreement, a wholly-owned subsidiary of Flowr
has agreed to export up to five hundred kilograms of premium dry
flower cannabis in bulk form into Israel. The Supply Agreement
represents the Company’s first significant international
distribution agreement and first export opportunity into Israel.
The Israeli medical cannabis market was
characterized by strong year-over-year growth in 2020. According to
Prohibition Partners, active patients grew by approximately 17%
from 2019 to 2020, reaching over 70,000 patients, leading to
imports into Israel of over 7 tonnes by July 2020. Israel also
announced plans to legalize recreational cannabis in late 2020,
which will further drive demand for high-quality cannabis products.
Brightfield estimates the market will generate over U.S.$130
million in 2021 and reach over U.S.$230 million by 2025.
“We are extremely pleased to be introducing our
cannabis to the Israeli market in partnership with IMC and Focus
Medical,” commented Darryl Brooker, Chief Executive Officer of
Flowr. “We expect the Israeli market to be an important destination
for us to grow our brand and distribution reach internationally.
Coupled with our ability to grow high THC premium dry flower from
our E.U. GMP facilities in Portugal, we view this partnership as an
important next step to becoming a significant international
producer of cannabis with a globally recognized brand.”
“IMC and Focus Medical have chosen to partner
with Flowr because of its reputation as a premium cannabis producer
in Canada and abroad,” commented Oren Shuster, Chief Executive
Officer of IMC. “We believe that the Israeli market will receive
Flowr’s renowned BC Pink Kush and BC Black Cherry strains with open
arms. We look forward to working with the Flowr team to market and
sell these premium and ultra-premium offerings.”
The Company expects its first shipment of BC
Pink Kush to be available in the Israeli market in H2, 2021. The
partnership with Focus Medical is for a period of three years,
subject to certain early termination provisions and applicable
regulatory requirements including the receipt of import and export
permits.
About Flowr
The Flowr Corporation is a Toronto-headquartered
cannabis company with operations in Canada, and Europe. Its
Canadian operating campus, located in Kelowna, BC, includes a
purpose-built, GMP-designed indoor cultivation facility; an outdoor
and greenhouse cultivation site; and a state-of-the-art R&D
facility. From this campus, Flowr produces recreational and
medicinal products. Internationally, Flowr intends to service the
global medical cannabis market through its subsidiary Holigen
Holdings Limited, which has a license for cannabis cultivation in
Portugal and operates a GMP licensed facility in Portugal. In 2020,
Flowr’s BC Pink Kush was recognized as the top indica strain in
Canada by KIND magazine.
Flowr aims to support improving outcomes through
responsible cannabis use and, as an established expert in cannabis
cultivation, strives to be the brand of choice for consumers and
patients seeking the highest-quality craftsmanship and product
consistency across a portfolio of differentiated cannabis
products.
For more information, please visit flowrcorp.com
or follow Flowr on Twitter: @FlowrCanada and LinkedIn: The Flowr
Corporation.
About Focus Medical
Focus Medical is one of eight original licensed
producers of medical cannabis in Israel and has over 10 years of
experience growing high quality medical cannabis in the Israeli
market. Focus Medical has an exclusive commercial agreement with
IMC to distribute its production under the IMC brand. In addition
to its own capacity, Focus Medical has signed supply agreements
with other cultivators for additional supply using its proprietary
genetics and for sale under the IMC brand.
About IMC
IMC is an MCO in the medical and adult-use
recreational cannabis sector, headquartered in Israel and with
operations In Israel, Germany and Canada. Over the past decade, the
Company believes that the IMC brand has become synonymous with
quality and consistency in the Israeli medical cannabis market. The
Company has also expanded its business to offer intellectual
property-related services to the medical cannabis industry.
In Europe, IMC operates through Adjupharm GmbH
(“Adjupharm”), a German-based subsidiary and EU
GMP-certified medical cannabis processor and distributor. IMC’s
European presence is augmented by strategic alliances with various
pan-European EU-GMP cultivators and distributors to capitalize on
the increased demand for medical cannabis products in Europe and
bring the IMC brand and its product portfolio to European
patients.
In Canada, IMC operates through Trichome JWC
Acquisition Corp. (d/b/a “JWC”). JWC is a licensed
producer located in Kitchener, Ontario, selling cannabis flower,
pre-rolls, hash and kief in the Canadian recreational cannabis
market under the JWC and Wagners brands. JWC operates with high
standards for providing clean, consistent, aeroponically-grown
premium cannabis products to medical patients and the adult-use
market throughout Canada and the world. On March 31, 2021, IMC
entered into a definitive agreement to acquire MYM and its licensed
producer subsidiary, Highland Grow Inc. This transaction, if
completed, will reinforce IMC's goal of being a leading global
premium cannabis producer and purveyor.
On behalf of The Flowr Corporation:
Darryl BrookerChief Executive Officer
CONTACT INFORMATION:
INVESTORS & MEDIA:John ChouChief Financial
OfficerJohn.chou@flowr.ca
Forward-Looking Information:
Certain statements made in this press release
may constitute “forward-looking information”, “future oriented
financial information” or “financial outlooks” (collectively,
“forward-looking information”) within the meaning
of applicable securities laws. Forward-looking information may
relate to anticipated events or results including, but not limited
to: the Company’s expectation that it will build on its
achievements as it continues to invest in sales and marketing; the
Company’s expectations for sales of product in Quebec; Flowr
servicing the global medical cannabis market and operating GMP
facilities in Portugal; Flowr’s business, production and products;
Flowr’s plans to provide premium quality cannabis to adult use
recreational and medical markets; EU-GMP certification opening the
medicinal cannabis opportunity for the Company in global markets;
the Company being well positioned to distribute EU-GMP compliant
product into underserviced markets; Flowr’s ability to realize
revenue from the Company’s European operations within the
anticipated timeframe or at all; Flowr’s ability to establish sales
and distribution channels in Europe to deliver medicinal cannabis
to underserviced markets; expectations with respect to the
anticipated timing for harvests, propagation, completion of
construction and installation of extraction infrastructure at the
Company’s Sintra facility; the Company being unable to commence GMP
packaging and commercial sales within the anticipated timeframe or
at all; Flowr’s ability to service the global medical cannabis
market and/or operate GMP-designed manufacturing facilities in
Portugal; the sale of medical cannabis in pharmacies in Portugal
representing a watershed moment for cannabis in the E.U.; the
Company’s ability to complete offering(s) of its securities under
the Final Shelf Prospectus; the expected impact of the strategic
review decisions on the Company; the actual costs of savings from
the Company’s restructuring initiatives, including with respect to
its workforce; the Company’s plans to divest its interests in
certain of its subsidiaries; the Company’s ability to obtain
licensing from Health Canada and other regulatory authorities with
respect to its properties and facilities; future legislative and
regulatory developments in Canada and elsewhere; the cannabis
industry in Canada generally; the ability of Flowr to implement its
business strategies; and the ability of Flowr to produce or sell
premium quality cannabis. Particularly, information regarding our
expectations of future results, targets, performance achievements,
prospects or opportunities is forward-looking information. Often,
but not always, forward-looking statements can be identified by the
use of forward-looking terminology such as “may”, “will”, “expect”,
“believe”, “estimate”, “plan”, “could”, “should”, “would”,
“outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the
negative of these terms or variations of them or similar
terminology. Forward-looking information is current as of the date
it is made and is based on reasonable estimates and assumptions
made by us at the relevant time in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that we believe are
appropriate and reasonable in the circumstances. To the extent any
forward-looking information in this press release constitutes
“future oriented financial information” or “financial outlooks”,
within the meaning of applicable securities laws, the purpose of
such information being provided is to demonstrate the potential of
the Company and readers are cautioned that this information may not
be appropriate for any other purpose. However, we do not undertake
to update any such forward-looking information whether as a result
of new information, future events or otherwise, except as required
under applicable securities laws in Canada. There can be no
assurance that such estimates and assumptions will prove to be
correct. Many factors could cause our actual results, level of
activity, performance or achievements or future events or
developments to differ materially from those expressed or implied
by the forward-looking information as discussed in the “Risk
Factors” section of the Company’s 2020 Annual Information Form
dated April 28, 2021 (the “AIF”). A copy of the
AIF and the Company’s other publicly filed documents can be
accessed under the Company’s profile on the System for Electronic
Document Analysis and Retrieval (“SEDAR”) at
www.sedar.com. The Company cautions that the list of risk factors
and uncertainties described in the AIF is not exhaustive and other
factors could also adversely affect its results. Readers are urged
to consider the risks, uncertainties and assumptions carefully in
evaluating the forward-looking information and are cautioned not to
place undue reliance on such information.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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