Bonno
2 years ago
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Cannabis company Flowr sells facility for proceeds of CA$3.4 million
Bonno
August 15, 2022 - Updated August 15, 2022
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Flowr Corp. is the latest Canadian cannabis company to sell off an unneeded facility, closing the sale of its Flowr Forest facility in British Columbia for aggregate proceeds of 3.4 million Canadian dollars ($2.6 million) — significantly less than what it invested in the outdoor and greenhouse cultivation site.
Part of the proceeds from selling the Kelowna facility to an unidentified “arm’s length third party” have been used to repay the remaining balance of a credit facility, Flowr noted in a Monday news release.
“The company, now bank debt free, intends to use the remaining proceeds for working capital,” Flowr said in the release.
Flowr had spent CA$10.2 million on the Flowr Forest facility as of the end of 2020, according to a regulatory filing.
The company completed a harvest from the site in 2019 but later impaired all the inventory from that site “pending a Health Canada review of a regulatory interpretation,” the filing said.
After that review, Flowr disposed of its inventory from Flowr Forest and started “assessing its strategic alternatives” for the site.
Canadian cannabis producers have destroyed increasing amounts of cannabis since adult-use legalization in 2018 as the industry tries to rein in oversupply.
Flowr announced an agreement to sell the Flowr Forest facility in June, as it cut 40% of its workforce.
The Toronto-headquartered company also previously announced the sale of its Portugal facilities and exited Australia, Spain and Uruguay as part of a strategic review.
In July, Flowr announced it was selling an R&D facility for CA$15.9 million.
The latest facility sale “marks the completion of first phase of the Company’s transformation plan,” according to the release.
The company’s shares trade as FLWR on the TSX Venture Exchange.
Bonno
2 years ago
Home / Canada
Canadian cannabis producer Flowr cuts 40% of staff, sells assets to save cash
Bonno
June 27, 2022 - Updated June 27, 2022
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Canadian cannabis producer The Flowr Corp. eliminated 40% of its workforce and sold a large parcel of land in a bid to save cash.
The struggling Toronto-headquartered company didn’t say in its Friday announcement how many workers were fired and did not reply to queries.
Flowr said in a news release that the reduction in its headcount would result in more than 4 million Canadian dollars ($3.1 million) in cost savings per year.
In a related move, Flowr said it sold a 17-acre parcel of land for CA$3.4 million, the proceeds of which will “provide the Company with increased operating capital.”
The land sale is expected to close in mid-August.
“These cost cutting measures and sale of non-core assets are vital to getting the company to profitability,” interim CEO Tom Flow said in a statement.
“Flowr is a brand synonymous with quality and we continue to believe that our model to provide premium cannabis products to the market while reducing overall costs will lead to success.”
Flowr has experienced C-suite turnover in recent months.
Flow, who is Flowr’s founder, was appointed interim chief executive in March after director and CEO Darryl Brooker left “to pursue other opportunities.”
It’s the third time Flow has assumed the CEO post in some capacity.
John Chou is still listed as Flowr’s chief financial officer on the company’s website, but an auto-reply email from Chou said Mike Willets has assumed the role of interim CFO.
Flowr has been in cost-cutting mode for some time.
In 2020, the company cut its workforce by 25% to conserve capital.
The company also pulled out of some international markets in recent years.
Earlier this year, Flowr sold subsidiary Holigen Holdings, which owned two cultivation facilities in Portugal.
The sale was to United Kingdom-based medical cannabis company Akanda Corp. in a deal worth roughly CA$35 million.
One year ago, Flowr pulled out of noncore markets – including Australia, Spain and Uruguay – as part of a strategic review intended to put the business on firmer financial footing.
Flowr has lost CA$274.8 million since 2017.
Flowr trades on the TSX Venture Exchange as FLWR.
Bonno
2 years ago
Canadian cannabis producer Flowr selling Portugal facilities to Akanda
Bonno
April 20, 2022
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Canadian cannabis producer The Flowr Corp. is selling its subsidiary Holigen Holdings, which owns two cannabis cultivation facilities in Portugal, to U.K.-based medical marijuana company Akanda Corp. in a deal worth roughly 35 million Canadian dollars ($28 million).
The purchase price includes CA$3.75 million in cash, 1.9 million Akanda shares, Akanda’s assumption of debt worth CA$5.1 million and interim funding to Holigen, according to a Wednesday news release.
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Akanda will also buy CA$1 million of Flowr shares in a private placement.
Holigen owns RPK Biopharma Unipessoal, which possesses cannabis facilities in Sintra and Aljustrel, Portugal.
In a statement, Flowr interim CEO Tom Flow said the deal will give the company “a significant amount of cash on closing to solidify its balance sheet and also preserve the upside related to our European operations.”
Flowr pulled out of a number of international cannabis markets in 2021.
Akanda described Holigen’s two Portugal facilities as “a high-quality 20,000 square foot indoor EU GMP certified grow facility… dedicated to the cultivation of high-THC premium cannabis” and a large outdoor grow facility.
“Portugal is one of the EU’s leading jurisdictions to conduct cannabis business with a forward-looking government, in addition to a responsive regulator,” Akanda CEO Tej Virk said in a statement.
“The government has been actively discussing the advancement of legalization of adult-use cannabis and Akanda is dedicated to our presence in the country as the landscape continues to evolve.”
Sam Dan
3 years ago
Another country to be serviced by FLWR could be a significant revenue source for the company.
"(“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. (NASD AQ: 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."
Sam Dan
3 years ago
[:PP A BOUGHT DEAL AT HIGHER PRICE ANNOUNCED. MARKET FOR MARIJUANA COMPANIES SEEM TO BE EXPECTING USA FEDERAL LEGALIZATION.
"(“Flowr” or the “Company”) is pleased to announce that it has entered into an agreement with Cantor Fitzgerald Canada Corporation as sole bookrunner and lead underwriter (the “Lead Underwriter”) pursuant to which the Lead Underwriter has agreed, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 19,610,000 units of the Company (the “Units”) at a price of $0.51 per Unit (the “Issue Price”) for aggregate gross proceeds to the Company of $10,001,100 (the “Offering”).
Each Unit shall consist of one common share in the capital of Flowr (each a “Common Share”) and one full Common Share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant shall be exercisable to acquire one Common Share at an exercise price of $0.64 per Common Share for a period of 2 years from the closing of the Offering.
The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 2,941,500 Units at the Issue Price, exercisable at any time, for a period of 30 days after and including the Closing Date, which would result in additional proceeds of $1,500,165 Over-Allotment Option is exercisable to acquire Units, Common Shares, and/or Warrants (or any combination thereof) at the discretion of the Lead Underwriter.
The Underwriters are to be paid a cash commission equal to 7.0% of the gross proceeds of the Offering and to receive Unit purchase warrants of the Company (the “Underwriters’ Warrants”) equal to 6.0% of the number of Units sold under the Offering, with each Underwriters’ Warrant being exercisable to acquire one common share at the Issue Price for a period of 24 months from the closing of the Offering.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on or about March 4 , 2021 (the “Closing Date”), and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The Company will use best efforts to obtain the necessary approvals to list the Common Shares and the Warrant Shares on the TSX Venture Exchange.
The net proceeds of the Offering will be used for general working capital.]
Sam Dan
3 years ago
FLWR EXPANDS INTO QUEBEC, SHOULD BE SIGNIFICANT REVENUE SOURCE FOR THE COMPANY.
"The Flowr Corp. has entered the province of Quebec with its first commercial orders for its award-winning B.C. Pink Kush and its newest strain B.C. black cherry. Flowr has shipped dried cannabis flower for the first time into the Quebec market through a distribution partnership with Rose LifeScience Inc.
Highlights
The company shipped its strain B.C. Pink Kush along with its newest product offering B.C. black cherry into the Quebec market.
Expands Flowr's current reach beyond Ontario, British Columbia and Alberta.
Flowr partners with Rose LifeScience, a local cannabis producer in Quebec.
"We are very pleased to be starting off 2021 with product shipment into the Quebec marketplace. We are fortunate to have local partners like Rose distributing our products and acting as Flowr brand ambassadors on our behalf," commented Lance Emanuel, president and interim chief executive officer of Flowr. "We believe Quebec will be one of our most important provincial partners in the future given it is the third-largest cannabis market in Canada to date with approximately 60 dispensaries," added Mr. Emanuel.
"We are thrilled to bring the brand to Quebeckers and to partner with The Flowr Corp., a cannabis company with 100-per-cent-indoor-grown cannabis," said Davide Zaffino, president and chief financial officer at Rose LifeScience.
Flowr entered into a sales, marketing and distribution agreement with Rose in April, 2020, and obtained its Autorite des marches publics approval to operate in the province of Quebec in August, 2020. Commercial terms of the agreement were not disclosed.
Flowr recently won 2020 brand of the year at the ADCANN Awards and also took home a bronze medal at the prestigious Clio Awards. Flowr's B.C. Pink Kush was recently voted by budtenders as the top indica dried flower at the inaugural Kind Magazine Awards. Flowr's B.C. Pink Kush has been a favourite strain and was a top 10 selling SKU in the dried flower category and the No. 1 selling SKU in the premium dried flower category through Q3 2020 in Ontario. B.C. Pink Kush has not been irradiated in approximately two years, consistently has both a high and a tight THC (tetrahydrocannabinol) band of 20 to 25 per cent and terpene content typically in excess of 2.5 per cent, a testament to Flowr's facility design and growing practices. Thus far, B.C. black cherry has shown a more robust THC profile than B.C. Pink Kush and as a result the company believes it will be accretive to its revenue growth in 2021."
Sam Dan
3 years ago
A MAJOR REVENUE SOURCE RECEIVES APPROVAL FOR PORTUGAL/EUROPEAN DISTRIBUTION!
" (“Flowr” or the “Company”) provides commentary on the decision by INFARMED, I.P. (“INFARMED”), Portugal’s National Authority of Medicines and Health Products, to approve the first market authorization which will allow a licensed producer of medical cannabis to release products in Portugal.
“We applaud the decision by INFARMED, which was the first of its kind, to allow patients to have access to medical cannabis products in Portugal through indication-specific market authorizations. The Portuguese government is forward thinking in its approach to improving the quality of life for Portuguese patients as scientific data continues to mount regarding medical cannabis as both safe and efficacious in treating a variety of conditions,” commented Pauric Duffy, Flowr’s Managing Director of Europe. “This ground-breaking decision sets the stage for Flowr to pursue market authorizations to serve Portuguese and European patients with medical cannabis produced from our world class local facilities in Sintra and Aljustrel,” commented Lance Emanuel, President and Interim CEO of Flowr.
In March 2020, Flowr announced that its wholly-owned subsidiary in Europe, Holigen Holdings Limited (“Holigen”), received its Good Manufacturing Practice (GMP) certification in accordance with European Union standards, for its indoor manufacturing facility located in Sintra, Portugal. The GMP certification was issued by INFARMED. Holigen is in the process of conducting stability testing on certain of its high-THC genetics and expects results within 2021.
Located just outside of Lisbon, Holigen’s Sintra facility is a purpose-built facility with six grow rooms, a research and development lab and an expected extraction processing facility. The Sintra facility is capable of producing approximately 2,000 kilograms of premium dried flower when fully optimized. Holigen’s European operations also include the Aljustrel facility which has more than 5,000,000 square feet of outdoor grow space and greenhouse capacity, capable of producing in excess of 500,000 kilograms of cannabis when fully operational.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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."
Sam Dan
3 years ago
LOOKS TO ME FLWR HAS FINALLY REACH A STAGE IN DEVELOPMENT
THAT RAISES THE COMPANY TO SIGNIFICANT DEVELOPMENT FOR THE FUTURE. KELONA IS COMPLETE. PORTUGAL KS COMPLETE. PRODUCTION WILL BEING SIGNIFICANT REVENUE FLOWS AND HE BUILDING SESSIONS ARE COMPLETE.
TODAYS NEWS SHOWS SIGNIFICANT RESEARCH COMPETENCE IS AVAILABLE.
"Mr. Lance Emanuel reports
FLOWR AND HAWTHORNE CANADA JOINTLY ANNOUNCE THE COMPLETION OF THE WORLD'S FIRST CANNABIS RESEARCH AND DEVELOPMENT FACILITY OF ITS KIND
North America's first research and development facility dedicated to advancing cannabis cultivation techniques and systems has been completed by The Flowr Corp. and Hawthorne Canada Ltd. Hawthorne is a subsidiary of the Hawthorne Gardening Company division of The Scotts Miracle-Gro Company (NYSE:SMG). Scotts Miracle-Gro is the world's leading marketer of branded consumer lawn and garden products and indoor growing solutions. Flowr cultivates and sells premium cannabis to medical and adult-use markets in Canada, Europe and Australia.
Located on Flowr's cultivation campus in Kelowna, British Columbia, Canada, the R&D Center includes state-of-the-art laboratories, indoor grow suites, and training areas in a single building. Flowr will test cultivation systems and techniques using Hawthorne's advanced lighting, fertilization and irrigation systems, growing mediums, and research protocols. In addition, Flowr intends to focus its own research on cannabis genetics and integrated growing systems in line with its goal of delivering premium quality cannabis products through highly efficient cultivation.
"We built Hawthorne to help cultivators of all sizes grow quality plants with high levels of efficiency and consistency. Completing the industry's only dedicated R&D facility gives us a distinct advantage. We will leverage Flowr's cultivation expertise and our technical capabilities into real world testing and results that will make a difference to growers," said Chris Hagedorn, SVP & General Manager of Hawthorne Gardening. "We are proud of this collaboration with Flowr, a leading international cannabis company, with extensive growing experience indoors, in greenhouses and at-scale outdoors. Flowr is also one of a few companies that have had experience growing diverse genetics in different countries. We believe this experience will benefit our companies and the growers we serve."
"The completion of the R&D Center brings our work with Hawthorne fully to life and will help keep both companies on the leading edge of cannabis cultivation for years to come," commented Lance Emanuel, President and Interim Chief Executive Officer of Flowr. "Operationalizing the R&D Center is a major accomplishment for our organization and strengthens our competitive advantage in cultivation. We believe the long-term success of Flowr will be rooted in our ability to maximize the cannabinoid and terpene expression of genetics without sacrificing yield. The work we will do at the R&D Center will help us build upon the success we've had producing high quality, premium cannabis like our award-winning, flagship-strain BC Pink Kush beloved by budtenders and consumers throughout Canada. Leveraging our work at the R&D Center will be imperative to our eventual entry into the United States once federally permissible by law."
The R&D Center is the centerpiece of a strategic R&D partnership formed by Flowr and Hawthorne in March 2018. It brings two of the world's leading experts together to be at the forefront of cannabis cultivation. The operations will be led by Dr. Deron Caplan, the first person in North America to earn a PhD focused on cannabis cultivation and production. Dr. Caplan was awarded his doctorate by the University of Guelph in August 2018 and is Flowr's Director of Research and Development. The R&D Center will be staffed by Flowr's scientists, five of whom have PhDs in various plant biology, plant genetics and plant biochemistry disciplines. Hawthorne R&D will lead the research design and methodology.
All requisite licensing from Health Canada has been obtained by Flowr and the expectation is that the R&D Center will be operating at full capacity in Spring 2021. Research has already begun conducting growing trials at scale using Hawthorne products.
About Hawthorne Gardening Company
We know why you grow. And that influences everything we do. We are a company guided by a set of principles that motivate us every day. Hawthorne Gardening Company is built to serve growers of all sizes, from commercial cultivators to home hobbyists. We are made up of dozens of best-in-class brands, from Gavita, General Hydroponics and Sun System, to Botanicare and Mother Earth, that span every growing category from lighting to nutrients, growing environment, growing media, hardware, and many more. We drive bold research and development investments, unparalleled distribution capabilities and extensive service solutions that go far beyond product. And we use our voice to advance legislation that supports the responsible legalization of cannabis. Because our goal is to enable all growers to seize today's unprecedented opportunities and build the industry of tomorrow. Learn more at www.hawthorne-gardening.com .
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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."
Sam Dan
3 years ago
BY MY COUNT FLWR AFTER TAKEOVER HAS 315,088,688 SHARES OUTSTANDING SO ADDING ANOTHER 894,013shares IS HARDLY NOTICABLE!
But their revenue flows are going to have to be huge to justify share price appreciation.
" (“Flowr” or the “Company”) announces that it intends to satisfy the interest obligations in respect of its outstanding 10.0% subordinated secured convertible debentures (the “Debentures”) to be paid on December 31, 2020 (the “Interest Payment Date”) by issuing common shares of Flowr (“Common Shares”) to holders of Debentures in accordance with the terms of the indenture between the Company and Computershare Trust Company of Canada dated April 27, 2020, as amended.
As at the date hereof, there is $4,966,000 aggregate principal amount of Debentures outstanding and the aggregate accrued interest on such Debentures is $339,728 (the “InterestAmount”). Subject to approval of the TSX Venture Exchange, the Company intends to pay the Interest Amount on the Interest Payment Date by issuing an aggregate of 894,013 Common Shares at an issue price of $0.38 per Common Share, being the volume weighted average price of the Common Shares on the trading day prior to the Interest Payment Date.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia. 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.
Sam Dan
3 years ago
Completion of takeover of Terrace Global another step in
FLWR management in adding cannabis production to increase revenue.
" ("Terrace Global" or the "Company") is pleased to announce that the Ontario Superior Court of Justice has issued a final order approving the previously announced plan of arrangement under the Business Corporations Act (Ontario) with The Flowr Corporation (TSXV: FLWR) ("Flowr"), pursuant to which Flowr will acquire all of the issued and outstanding common shares of Terrace Global (the "Arrangement").
In connection with closing of the Arrangement, trading in the common shares of Terrace Global ("Terrace Shares") on the TSX Venture Exchange ("TSXV") shall be halted as of noon on December 21, 2020.
In addition, certain directors and officers of Terrace Global have agreed to accept a portion of their change of control payments due upon completion of the Arrangement in Terrace Shares, which will result in Terrace Global issuing an aggregate of 3,346,613 Terrace Shares to such directors and officers at a deemed price of $0.2188 per Terrace Share concurrently with closing of the Arrangement. Each such Terrace Share will then be exchanged for 0.4973 of a common share of Flowr in accordance with the terms of the Arrangement.
Completion of the Arrangement is subject to certain closing conditions customary in transactions of this nature. Provided that all closing conditions are satisfied or waived, Terrace Global expects the Arrangement to be completed on or about December 22, 2020, following which the Terrace Shares will be de-listed from the TSXV.
About Terrace Global
Terrace Global is a multi-country operator (MCO) led by experienced cannabis entrepreneurs focused on the development and acquisition of international cannabis assets. Terrace Global's focus is on federally legal jurisdictions with existing domestic demand, low-cost inputs and approved for exportation."
Sam Dan
3 years ago
THE TURN AROUND IN FLWR PROGRESS CONTINUES EVENTUALLY EARNINGS WILL JUSTIFY SIGNIFICANT IMPROVEMENT IN SHARE PRICES
" Canadian budtenders vote Flowr’s BC Pink Kush the Top Indica Flower in 2020.
Flowr’s BC Pink Kush was a top 10 selling SKU in the dried flower category and the #1 selling SKU in the premium dried flower category through Q3 2020 in Ontario.
Flowr’s BC Pink Kush has not been irradiated in approximately 2 years.
Flowr to move in 2021 to innovative packaging to highlight premium quality of its BC Pink Kush.
TORONTO, Dec. 18, 2020 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) is pleased to announce its BC Pink Kush was awarded the Top Indica Dried Flower in Canada. Chosen by over 150 retail budtenders from across the country, the awards were organized by kind Magazine, Canada’s pre-eminent premium cannabis lifestyle magazine. Budtenders voted on the best Canadian cannabis companies and products of the year across 22 categories and thousands of products.
“A recognition of this magnitude by budtenders across the country validates our strategy of becoming one of the leading companies in the premium segment of the cannabis market in Canada,” commented Vinay Tolia, Chief Executive Officer of Flowr. “Budtenders play a critical role in educating consumers about cannabis brands and products. We could not be more pleased to be viewed as having the best product in the marketplace by this key group of cannabis connoisseurs who act as Flowr brand advocates on our behalf.”
Josh Nagel, Chief Executive Officer of kind Magazine, shared his congratulations with the team at Flowr, “Congrats to the whole Flowr team on their kind award for 'Best Indica, Dried Flower' in Canada in 2020. There are a handful of LP’s that are so widely regarded by budtenders for quality and consistency and Flowr is clearly at the top of that list.” He continued, “Aside from their weed, there is a group of really really good, kind people behind the brand. Can’t wait to follow their success in 2021.”
This award comes after BC Pink Kush was a top 10 selling SKU in the dried flower category and the #1 selling SKU in the premium dried flower category through Q3 2020 in Ontario (1). Flowr believes a key differentiating factor with respect to its focus on growing quality cannabis is how its facility was designed to not use irradiation in its production process. Flowr’s BC Pink Kush has not been irradiated in approximately 2 years. Moreover, the Company believes narrow THC bands provide consumers with the consistency they expect from quality products and BC Pink Kush’s THC range has been 20-25% consistently over the same time frame. The aggregate list of winners is available in kind Magazine’s December 2020 publication which has an estimated circulation of 1.2 million readers.
In 2021, the Company will be implementing innovative new glass jars for its dried flower products. Flowr believes this packaging enhancement will build on its positioning within the premium segment of the market. The Company is also excited about upcoming new high THC cultivar launches in 2021 the first of which is expected to be BC Black Cherry which will initially be available in the market in pre-roll formats beginning in January 2021 with 3.5g jars to follow shortly thereafter.
(1) Source Hifyre data
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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.
Sam Dan
3 years ago
This could be a major advance in FLWR moves in Europe which is best opportunity for growth at this time.
"THE FLOWR CORPORATION PROVIDES UPDATE ON EUROPEAN OPERATIONS
The Flowr Corp. has provide an operational update from its European operations which is jointly operated with Terrace Global Inc. In addition, Flowr announces a strategic warehousing agreement (the "Warehousing Agreement") with Tilray Inc. (NASDAQ: TLRY) ("Tilray") where the companies will take a collaborative approach to furthering their cannabis businesses in the European Union. The Company is also pleased to announce that the Company has agreed to close the final tranche of funding of the Aljustrel Joint Venture in the amount of C$1 million pursuant to the Equity Line and Profit Share Agreement (the "Agreement") with Terrace Global.
Operational Update
Flowr is pleased to report outdoor medical cannabis results in Aljustrel, where approximately 40,000 plants have yielded approximately 3,000 kgs of dried flower cannabis flower.
"Given the importance of Europe to the future of the cannabis industry and the historic United Nations vote we wanted to provide an update on our Portuguese operations. Since our partnership with Terrace Global began in May, 2020 we have been able to import a diverse set of high-THC genetics in Portugal, plant over 30 acres of outdoor medical cannabis and put in place the infrastructure that is anticipated to allow us to leverage over 180 acres of outdoor medical cannabis cultivation potential in the future," commented Vinay Tolia, CEO of Flowr. "There is no other project like this in the E.U. and we expect to be able to leverage this low-cost cultivation capacity to produce a diverse set of derivative products as well as dried flower which we believe will be released with GMP certification. We continue to work on closing the acquisition of Terrace Global by year end and are extremely excited by what the future holds for the combined organizations."
Recently, harvests from the Company's indoor polytunnels in Aljustrel have yielded approximately 35 kgs of 20% + THC cannabis dried flower which the Company expects to release with E.U. GMP certification in 2021. Additionally, and as previously announced, the Company's outdoor harvest yielded approximately 3,000 kgs of high THC dried flower cannabis flower.
"The preliminary results of the harvest from our polytunnels may be indicative of a successful business model in the E.U. medical cannabis industry. These lab results have shown the potential to cultivate high THC medical cannabis in polytunnels in a low-cost structure," commented Dr. Deron Caplan, Director, Research and Development.
During the summer, the Company focused its efforts on expanding its genetics library and currently maintains several high THC strains, including Sour-P, Black Dog, Brains Choice, Gelato, Gorilla Glue #4, and Green Doctor. Each of these strains tested between 18-23% THC.
Strategic Warehousing Agreement with Tilray
Flowr is pleased to announce a strategic warehousing agreement with Tilray whereby the parties have agreed to the storage and warehousing of E.U. GMP certified medical cannabis at the Company's Sintra facility in Portugal. The parties will undertake to develop a collaborative approach with a view to leverage each party's E.U. GMP certified facilities in Portugal to store and warehouse medicinal cannabis products for the European market. The commercial terms of the agreement were not disclosed.
Terrace Funding
As part of the Partnership and under the terms of the Agreement, Terrace Global has agreed to fund the operations and certain capital expenditures at the Company's outdoor facility located in Aljustrel, Portugal in exchange for common shares and warrants in Flowr. As part of the last tranche of funding, Flowr has issued to Terrace Global 1,923,077 common shares of the Company at a price of $0.52 and an equal amount of common share warrants. Each warrant is exercisable into one full common share in the capital of the Company at an exercise price of $0.76 per common share for a period of 36 months. The final tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the final tranche are subject to the customary four-month hold period and may not be traded before April 15, 2020.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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."
Sam Dan
4 years ago
Its lonely on this board but will keep current.
"Another PP to fund European build-out. Should be fully functioning soon
" “Company”) is pleased to announce that the Company has closed on a fifth tranche of funding (the “Fifth Tranche”) in the amount of C$1,000,000 pursuant to the Equity Line and Profit Share Agreement (the “Agreement”) with Terrace Global Inc. (TSXV: TRCE) (“Terrace Global”). On September 23, 2020, the parties to the Agreement amended its terms such that Terrace Global’s percentage of net proceeds under the Agreement will be increased by 2.5% for every additional $200,000 funded in excess of $3,000,000 to a maximum of 50% of net proceeds. The Fifth Tranche will be used to fund the Company’s outdoor medical cannabis site in Aljustrel, Portugal which is jointly operated with Terrace Global (the “Partnership”).
As part of the Partnership and under the terms of the Agreement, Terrace Global has agreed to fund the operations and certain capital expenditures at the Company’s outdoor facility located in Aljustrel, Portugal in exchange for common shares and warrants in Flowr. As part of the Fifth Tranche announced today, Flowr has issued to Terrace Global 1,923,077 common shares of the Company at a price of $0.52 and an equal amount of common share warrants (the “Warrants”). Each Warrant is exercisable into one full common share of the Company at an exercise price of $0.76 per common share for a period of 36 months from October 9, 2020. The Fifth Tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the Fifth Tranche are subject to the customary four-month hold period and may not be traded before February 10, 2020.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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.
Sam Dan
4 years ago
Another PP announced. Rather small this time, obviously and
hopefully further expences of European building will be completed. The revenue from this source should be a major resource for the company
"
) (“Flowr” or the “Company”) is pleased to announce that the Company has closed on a fourth tranche of funding (the “Fourth Tranche”) in the amount of C$703,000 pursuant to the Equity Line and Profit Share Agreement (the “Agreement”) with Terrace Global Inc. (TSXV: TRCE) (“Terrace Global”). The Fourth Tranche will be used to fund the Company’s outdoor medical cannabis site in Aljustrel, Portugal which is jointly operated with Terrace Global (the “Partnership”).
“We are very pleased by the progress in Aljustrel and continue to work closely with Terrace Global towards a successful harvest later this year,” commented Vinay Tolia, Chief Executive Officer of Flowr. “Thus far the crops in Aljustrel look very promising and we continue to be on track to harvest the fields in Q4 2020. It’s exciting to be leading what we believe to be one of the largest outdoor THC cultivation projects in Europe to date.”
As part of the Partnership and under the terms of the Agreement, Terrace Global has agreed to fund the operations and certain capital expenditures at the Company’s outdoor facility located in Aljustrel, Portugal in exchange for common shares and warrants in Flowr. As part of the Fourth Tranche announced today, Flowr has issued to Terrace Global 1,351,923 common shares of the Company at a price of $0.52 and an equal amount of common share warrants (the “Warrants”). Each Warrant is exercisable into one full common share of the Company at an exercise price of $0.76 per common share for a period of 36 months from September 8, 2020. The Fourth Tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the Fourth Tranche are subject to the customary four-month hold period and may not be traded before January 9, 2020. The parties continue to expect Terrace Global to fund at least C$3 million under the Agreement."
Sam Dan
4 years ago
More funding by Terrace Global to develop European production.
I wonder what proportion of shares and warrants they now hold.But we do need their continued support.
" (“Flowr” or the “Company”) is pleased to announce that the Company has closed on a third tranche of funding (the “Third Tranche”) in the amount of C$350,000 pursuant to the Equity Line and Profit Share Agreement (the “Agreement”) with Terrace Global Inc. (TSXV: TRCE) (“Terrace Global”). The Third Tranche will be used to fund the Company’s outdoor medical cannabis site in Aljustrel, Portugal which is jointly operated with Terrace Global (the “Partnership”).
“We are very pleased by the progress in Aljustrel and continue to work closely with Terrace Global towards a successful harvest later this year,” commented Vinay Tolia, Chief Executive Officer of Flowr. “Thus far the crops in Aljustrel look very promising and we continue to be on track to harvest the fields in Q4 2020. It’s exciting to be leading what we believe to be one of the largest outdoor THC cultivation projects in Europe to date.”
As part of the Partnership and under the terms of the Agreement, Terrace Global has agreed to fund the operations and certain capital expenditures at the Company’s outdoor facility located in Aljustrel, Portugal in exchange for common shares and warrants in Flowr. As part of the Third Tranche announced today, Flowr has issued to Terrace Global 637,077 common shares of the Company at a price of $0.52 and an equal amount of common share warrants (the “Warrants”). Each Warrant is exercisable into one full common share of the Company at an exercise price of $0.76 per common share for a period of 36 months from August 28, 2020. The Third Tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the Third Tranche are subject to the customary four-month hold period and may not be traded before December 29, 2020. The parties continue to expect Terrace Global to fund at least C$3 million under the Agreement.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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."
Sam Dan
4 years ago
Market seems to be very negative to Flower. I think its oversold.
Latest financing announced yesterday
"THE FLOWR CORPORATION ANNOUNCES SECOND TRANCHE OF FUNDING FROM TERRACE GLOBAL
The Flowr Corp. has closed on a second tranche of financing in the amount of $500,000 pursuant to the equity line and profit share agreement with Terrace Global Inc. The second tranche will be used to finance the company's outdoor medical cannabis site in Aljustrel, Portugal, which is jointly operated with Terrace Global.
"We are very pleased by the progress in Aljustrel and continue to work closely with Terrace Global towards a successful harvest later this year," commented Vinay Tolia, chief executive officer of Flowr. "Thus far the crops in Aljustrel look very promising and we continue to be on track to harvest the fields in Q4 2020. It's exciting to be leading what we believe to be one of the largest outdoor THC cultivation projects in Europe to date."
As part of the partnership and under the terms of the agreement, Terrace Global has agreed to finance the operations and certain capital expenditures at the company's outdoor facility located in Aljustrel, Portugal, in exchange for common shares and warrants in Flowr. As part of the second tranche announced today, Flowr has issued to Terrace Global 961,538 common shares of the company at a price of 52 cents and an equal amount of common share warrants. Each warrant is exercisable into one full common share of the company at an exercise price of 76 cents per common share for a period of 36 months from Aug. 5, 2020. The second tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the second tranche are subject to a customary four-month hold period and may not be traded before Dec. 6, 2020. The parties continue to expect Terrace Global to finance at least $3-million under the agreement.
About The Flowr Corp.
Flowr is a Toronto-headquartered cannabis company with operations in Canada, Europe and Australia. Its Canadian operating campus, located in Kelowna, B.C., includes a purpose-built, GMP (good manufacturing practices)-designed indoor cultivation facility; an outdoor and greenhouse cultivation site; and a state-of-the-art research and development facility. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a licence for cannabis cultivation in Portugal and operates GMP-licensed facilities in both Portugal and Australia.
About Terrace Global Inc.
Terrace Global is a Canadian company focused on the development and acquisition of international cannabis assets. Its single-minded goal is to unlock value in new jurisdictions. Terrace was created by a group of pioneers in the cannabis space who have come together to build a best-in-class portfolio of assets, across international markets.
Sam Dan
4 years ago
Another view of todays financial report of FLWR
"THE FLOWR CORPORATION ANNOUNCES FIRST QUARTER 2020 RESULTS AND CHANGES TO ITS BOARD OF DIRECTORS
The Flowr Corp. has released its financial and operational results for the first quarter ended March 31, 2020.
Key financial and operating highlights in the first quarter of 2020:
The Company generated gross revenue of approximately $1 million in the first quarter.
Average price per gram in the first quarter was $6.93, reflecting the Company's positioning in the premium segment. 123 kgs of sales in the quarter was entirely of its flagship strain BC Pink Kush. The Company did not have enough finished product to meet demand in the quarter. Product availability has since substantially improved in the second quarter.
The Company harvested a total of 262kg of BC Pink Kush in the first quarter (with a large portion being harvested late in quarter). Flowr's BC Pink Kush has not been irradiated since January 2019, a testament to the ability to produce high-quality product in a controlled indoor environment.
In February, the Company received Health Canada approval to double capacity at its flagship Kelowna 1 Facility enabling it to become fully operational. The newly licensed area includes the Company's automated packaging equipment which is expected to drive productivity efficiencies going forward.
In March, the Company restructured 25% of its global workforce, saving approximately $6 million annually. In late March, the Company announced that its European subsidiary Holigen received its EU-GMP certification at its facility in Sintra Portugal, putting the Company on a short list of cannabis companies with this license in Europe.
During the quarter, the Company launched a new and revitalized Flowr recreational brand initiative which included a full brand redesign, including new logo, new consumer facing website (flowr.ca) and various digital marketing initiatives.
During the quarter, Irina Hossu joined the Company as Chief Financial Officer to help lead the Company for its next stage of global growth. Irina brings over 15 year of experience in progressively senior finance leadership roles across a variety of global industries including consumer-packaged goods, beverage and alcohol, and financial technology.
Subsequent financial and operational highlights post end of the first quarter
The Company strengthened its financial position with the closing of an aggregate non-brokered $21.5 million secured subordinated convertible debenture unit private placement in two tranches, the first on April 27, 2020 and second on June 3, 2020, which were led by Flowr's Chairman and CEO who committed in excess of $11 million.
Insiders representing approximately 60% of total sharecount have signed a voluntary 1 year lockup, in addition to any lock-ups they have currently entered into, and have not sold a share since the Company's inception.
On May 14, 2020, the Company announced that it has entered into an Equity Line and Profit Sharing Agreement (the "Partnership") with Terrace Global Inc. (TSX-V: TRCE) ("Terrace Global") to fund the development and operations of Holigen, with both parties expecting Terrace Global to fund at least $3 million over the course of the Partnership.
The Company shipped approximately 14,000 clones to Portugal to support the planting of Aljustrel for the 2020 season. Terrace has contributed 30,000 seeds to the Partnership, including 8 different high THC strains. The two companies have successfully planted the seeds and clones together in an area totaling approximately 1 million square feet of the Aljustrel Facility. The Company believes this project to be one of the largest outdoor THC growing operation in Europe to date.
The Company made its first dried flower sales in the Australian market through its Australian subsidiary Holigen Australia, selling Pink Kush and Sensi Star to medical patients.
All 20 grow rooms at the Kelowna 1 Facility are currently propagated with plants and the Company expects the vast majority of 2020 production to be premium dried flower in excess of 20% THC.
Flowr' BC Pink Kush was recently highlighted by the OCS ahead of 4/20 as their bestselling premium pink kush strain. A recent publication by the OCS, cited Flowr branded pre-rolls as the #1 selling brand of pre-rolls on OCS.ca for the period April 1, 2019 to March 31, 2020.
Over 500 kg of BC Pink Kush was harvested in April & May. The Company believes it will see a continued substantial increase in production and sales throughout the remainder of the year given the full operation of the Kelowna 1 Facility and production of primarily high THC strains.
Net revenues in Q2 2020 are expected to be in excess of $2 million with Q3 expected to be substantially greater than Q2. The Company re-iterates its objective of becoming cash flow positive in H2 2020 even with the uncertainty around COVID-19.
MANAGEMENT COMMENTARY
"As previously mentioned, we believe Q1 was the bottom for us in the Canadian recreational market and that we will see a step function change in our operating and financial results going forward. Our flagship purpose-built indoor facility in Canada is finally fully operational and licensed. We are producing only high quality and high THC strains out of it, which we know consumers demand and are willing to pay a premium for. Sales trends and demand for our BC Pink Kush strain remain very encouraging. Our foundational thesis that growing high quality cannabis at scale is difficult and only a few companies are both focused and able to do so is playing out in our view. In Europe, we are extremely excited by our Partnership with Terrace Global after having recently joined a short list of companies with EU-GMP certification. We expect Holigen to contribute more meaningfully to our results beginning in 2021. Our conviction in our strategic direction is further validated by management recently leading yet another round of financing in a very challenging capital markets environment." said Vinay Tolia, Flowr's Chief Executive Officer.
FIRST QUARTER 2020 RESULTS
The following table summarizes the Company's key financial and operational results:
In thousands of Canadian dollars, (except per share and grams metrics)
Three months ended March 31
2020 2019
Grams Harvested -- K1 490,101 279,760
Grams Sold 122,514 211,195
Average Net Realized Price per Gram 6.93 7.70
Gross Revenue 1,012 1,812
Net revenue 776 1,626
Gross profit (loss) before fair value adjustments (1,623) 114
Selling, General and Administrative expense 6,019 3,701
Share-based compensation 857 2,103
Net income/(loss) (12,492) (5,850)
Basic earnings/(loss) per share (0.09) (0.06)
Diluted earnings/(loss) per share (0.09) (0.06)
Cash used in investing activities (4,023) (12,645)
Cash from financing activities 3,576 2,110
100% of sales and of first quarter production were attributed to BC Pink Kush.
Average selling price per gram was $6.93 reflecting the Company's positioning in the premium segment.
Kilograms sold of 123 was down 46% over the fourth quarter as the Company worked through the last of legacy strain mix headwinds.
Gross revenues were approximately $1 million in the quarter. Returns and price concessions were $73k in the quarter. Inventory impairment was $666k in the quarter on legacy strains which the Company is no longer producing.
For a full discussion of Flowr's operational and financial results for the three months ended March 31, 2020, please refer to the Company's first quarter 2020 Management's Discussion & Analysis and Financia"
Sam Dan
4 years ago
[B]FLWR releases quarterly financials today and after close of Market Holds a conference call this afternoon
Already a PR out
THE FLOWR CORPORATION PROVIDES UPDATE ON EUROPEAN OPERATIONS
The Flowr Corp. has provided an operational update on the Aljustrel, Portugal, outdoor medical cannabis site (the partnership), which is jointly operated with Terrace Global Inc. Flowr has also closed on the first tranche of financing of the Aljustrel joint venture in the amount of $765,600 pursuant to the equity line and profit share agreement with Terrace Global.
"We are very pleased by the early results in Aljustrel and look forward to continuing to work closely with Terrace Global to ensure a successful harvest later this year," commented Vinay Tolia, chief executive officer of Flowr. "Our two companies have mobilized very quickly to begin planting in Aljustrel. We are very excited to be moving forward with what we believe to be one of the largest outdoor THC cultivation projects in Europe to date."
Operational update, Portugal
The two companies have planted on approximately one million square feet of land in Aljustrel with a variety of high-THC strains, which are expected to thrive in the outdoor growing environment in Portugal. Flowr shipped approximately 14,000 clones from Kelowna to Portugal, consisting primarily of BC Pink Kush, BC Tahoe OG and BC Louis XII. These cultivars have been successfully grown by Flowr in the outdoor environment of Flowr Forest. Terrace Global contributed approximately 30,000 seeds consisting of eight different strains, including Gorilla Glue No. 4, Zkittles, Gelato, Wedding Cake, KC33, Brains Choice, Spontanica and Mango. Flowr, through its wholly owned subsidiary Holigen Holdings Ltd., received the requisite permits from INFARMED IP for the importation of these genetics in May. The company is in the process of importing harvesting equipment and a custom-built combine harvester from Terrace Global to the Aljustrel site in order to allow for automated harvesting of high-THC biomass. The wide variety of high-THC strains, coupled with efficient machinery, is expected to yield a robust depth of cannabis products suitable for medical markets in Europe.
Closing of first tranche of financing
As part of the partnership and under the terms of the equity line and profit share agreement, Terrace Global has agreed to finance the operations and certain capital expenditures at the company's outdoor facility located in Aljustrel, Portugal, in exchange for common shares and warrants of Flowr. As part of the first tranche announced today, Flowr has issued to Terrace Global 1,472,308 common shares of the company at a price of 52 cents and an equal amount of common share warrants. Each warrant is exercisable into one full common share of the company at an exercise price of 76 cents per common share for a period of 36 months from June 24, 2020. The first tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the first tranche are subject to a customary four-month hold period and may not be traded before Oct. 25, 2020. The parties continue to expect Terrace Global to finance at least $3-million under this partnership.
About The Flowr Corp.
Flowr is a Toronto-headquartered cannabis company with operations in Canada, Europe and Australia. Its Canadian operating campus, located in Kelowna, B.C., includes a purpose-built, GMP (good manufacturing practices)-designed indoor cultivation facility, an outdoor and greenhouse cultivation site, and a state-of-the-art research and development facility. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a licence for cannabis cultivation in Portugal and operates GMP-licensed facilities in both Portugal and Australia.
Sam Dan
4 years ago
Here is latest update from management report delays, not serious. Debt miscue hopefully minor.
"Mr. Vinay Tolia reports
THE FLOWR CORPORATION ANNOUNCES FIRST QUARTER 2020 EARNINGS RELEASE UPDATE
The Flowr Corp. has postponed the filing of its first quarter 2020 interim financial statements and related management's discussion and analysis for the period ended March 31, 2020, which were required to be filed by June 1, 2020, under National Instrument 51-102 (Continuous Disclosure Obligations). The Company expects to report and file first quarter 2020 earnings on or before June 15th, 2020. In addition, the Company announces that, in accordance with applicable corporate and securities laws, and stock exchange rules, it has decided to delay holding an annual general meeting of shareholders until a later date in the second half of 2020.
On March 23rd, 2020, the Canadian Securities Administrators published substantively harmonized temporary exemptions from certain regulatory filing requirements that provide issuers with a 45-day filing extension for filings required on or before June 1, 2020 to allow issuers the time needed to focus on the many other business and financial reporting implications of COVID-19. The Company will rely on these exemptions with respect to the Interim Filings as set out in Part 4 and Part 5 of NI 51-102.
On May 1st, 2020, the Canadian Securities Administrators announced temporary blanket relief for public companies from certain filing and delivery requirements, which are generally tied to the sending of materials for annual general meetings. The Canadian Securities Administrators implemented the relief through local blanket orders that are substantially harmonized across the country, including the exemptive relief contained in Ontario Instrument 51-504 Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials of the Ontario Securities Commission. The Company will rely on this relief to postpone the public filing of its executive compensation disclosure until such time as it is filed and delivered to shareholders as part of the Company's management information circular relating to its 2020 annual meeting of shareholders.
All of the Company's management, directors and other insiders will remain subject to a blackout period under its Timely Disclosure, Confidentiality and Insider Trading Policy, which reflects the principles set out in section 9 of National Policy 11-207: Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
Since the Company reported 2019 fiscal year end results on April 29th, 2020, the Company announced that it has entered into an Equity Line and Profit Sharing Agreement (the "Partnership") with Terrace Global (TSX-V: TRCE) ("Terrace Global") to fund the development and operations of Holigen. For further details on the Partnership with Terrace Global please see the Company's press release dated May 14th, 2020 and related filing on SEDAR.
On May 27th, 2020, the Company became aware that for the fiscal quarter ending March 31, 2020 it was in breach of a current ratio financial covenant and positive covenant requiring the Company to have a certain percentage of total assets held by loan parties under the Credit Agreement dated November 18, 2019, as amended to the date hereof, with a syndicate of lenders, including ATB Financial (the "Credit Agreement"). The Company, as at today's date, is in compliance with the current ratio testing under the Credit Agreement, but requires a formal waiver from its lenders with respect to the aforementioned breach of covenants. The Company is currently in discussions with its lenders to receive such waivers, and believes it will be able to receive a waiver from such breaches.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
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."
Sam Dan
4 years ago
Start of distribution in Portugal by FLWR
"TERRACE GLOBAL ANNOUNCES AGREEMENT WITH THE FLOWR CORPORATION TO JOINTLY DEVELOP OUTDOOR MEDICAL CANNABIS PROJECT IN PORTUGAL
Terrace Global Inc. has entered into an equity line and profit-sharing agreement with The Flowr Corp. for the purpose of jointly developing an outdoor medical cannabis project in Portugal. Under the terms of the Agreement, Terrace Global will fund certain operations and certain capital expenditures relating to the Project in exchange for the issuance of: (1) common shares of Flowr at the volume weighted average trading price of the shares on the day prior to such subscription less the maximum applicable discount available under the TSX Venture Exchange ("TSXV") subject to a minimum price of $0.52 per share; and (2) warrants at an exercise price equal to the greater of $0.76 and the minimum exercise price permitted under the TSXV rules. In addition, the parties have agreed to divide the net proceeds from the Project on a 75% basis for Flowr and 25% basis for the Company, with an adjustment to 20% for the Company in certain circumstances. As part of the Agreement, a Technical Committee comprised of two representatives from the Company and two representatives from Flowr will oversee the Project. The Company also has a renewal option to cultivate at the Aljustrel site during the 2021 season at its sole discretion in exchange for a 50% split of net proceeds from the sale of any medical cannabis derived from that season's operations.
In March 2020, Flowr received GMP (Good Manufacturing Certification) certification in accordance with European Union standards, for its manufacturing facility in Sintra, Portugal. The GMP certification was issued by INFARMED, I.P. ("INFARMED"), the Portuguese National Authority of Medicines and Health Products. This GMP certification allows the facility to manufacture and export GMP-certified finished medical cannabis products, specifically dried flower (Part I and II), from Portugal to international markets with legal medical cannabis regulations. The Sintra facility is located just outside of Lisbon.
"In light of the recent market upheaval, Terrace Global has been approached by several parties looking to access our operational expertise in outdoor cultivation and our ability to fund large-scale projects. The partnership with Flowr positions us well to focus on low-cost outdoor cultivation within the European Union at a time when there are still limited competitors," commented Francisco Ortiz von Bismarck, Chief Executive Officer of the Company. "We are very excited to have Flowr as our outdoor medical cannabis cultivation partner. Flowr is comprised of a team of cannabis experts with extensive knowledge in the cultivation, manufacturing and processing of medical cannabis. In 2020, Flowr obtained GMP (Part I and II) from INFARMED at its production facility in Sintra, Portugal. We expect to be able to leverage Flowr's operations and expertise, which will result in a very significant win for the Company and its partners."
The transactions contemplated by the Agreement are subject to the approval of the TSXV.
The shares and warrants acquired by Terrace Global will be held only for investment purposes. Terrace Global may from time to time in the future increase or decrease its ownership, control or direction over securities of Flowr, through market transactions, private agreements or otherwise.
About Terrace Global
Terrace Global is a multi-country operator (MCO) led by experienced cannabis entrepreneurs focused on the development and acquisition of international cannabis assets. Terrace Global's focus is on federally legal jurisdictions with existing domestic demand, low cost inputs and approved for exportation. Terrace Global's existing asset platform consists of: (1) a 33.75% indirect equity interest in one of the currently two recreational cannabis operations in Uruguay; (2) 100% of Oransur, S.A., a Uruguayan company producing high CBD hemp in Uruguay; (3) 100% of Terra Nova Producao e Comercializacao de Produtos Natuis e Farmaceuticos, Lda, a Portuguese company with a pre-license issued by INFARMED for the cultivation, importation, and exportation of medical cannabis in Portugal; and (4) 100% of Pharmabinoide S.L., a Spanish company producing and commercializing hemp in Spain. MariMed Inc. (OTCQX: MRMD), a multi-state cannabis operator in the U.S., dedicated to improving the health and wellness of people through the use of cannabinoids and cannabis products, owns approximately 6% of Terrace Global.
About Flowr
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in both Portugal and Australia.
Sam Dan
4 years ago
RE:The Flowr Corp Announces $20 Million Secured Debt Financing
While this is dilutive to the share structure of FLWR, it is hearting to see the presence of insider confidence in the future of the company!
We can hope the coming financial filing will add to shareholder confidence as well.
In a lousy Market anything positive is welcome.
"THE FLOWR CORPORATION ANNOUNCES A CAD $20 MILLION PRIVATE PLACEMENT LED BY INSIDERS & FOURTH QUARTER EARNINGS DATE
The Flowr Corp. has arranged a non-brokered private placement for gross proceeds of $20-million, with the ability, at the company's discretion, to upsize the amount to an aggregate gross proceeds of $25-million. The Company expects to use the proceeds of the Offering for general working capital purposes.
Flowr announces non-brokered private placement of convertible debenture units of $20 million, with ability to upsize to an aggregate of $25 million
Continued support by management and insiders who commit in excess of $10 million, led by Chairman and CEO
Group of major insiders agree to a voluntary 1-year lock-up
Flowr will release fourth quarter earnings after the close on Wednesday, April 29th, 2020 and will host a conference call to review results on Wednesday, April 29th, 2020 at 5:30pm ET.
Chairman & Chief Strategist Steve Klein and Chief Executive Officer Vinay Tolia are leading the Offering with commitments in excess of $10 million. Management and insiders will continue to own approximately 58% of the shares of the Company post financing on a fully diluted basis (including equity incentives).
In addition, certain directors, officers, employees and executives of Flowr, including Chairman & Chief Strategist Steve Klein, Chief Executive Officer Vinay Tolia, Founder and Managing Partner Thomas Flow, Managing Director, Europe Pauric Duffy and Managing Director, Australia & Asia Pacific Peter Comerford who currently collectively control approximately 58% of the Company have agreed to voluntary lock-up agreements (the "Lock-Up Agreements") in connection with the closing of the Offering whereby all shares held by these shareholders will be subject to restrictions on sale until released under the terms of the Lock-Up Agreements on the 12-month anniversary of the closing date of the Offering (the "Closing Date").
The Offering consists of units of the Company (the "Units") at a price of CAD$1,000.00 per Unit. Each Unit consists of one subordinated secured debenture of the Company (each, a "Debenture") and one common share ("Common Share") purchase warrant (each, a "Warrant").
Each Debenture is comprised of CAD$1,000.00 principal amount of convertible debentures of the Company. The Debentures will bear interest at a rate of 10.0% per annum from the Closing Date, calculated semi-annually in arrears on June 30 and December 31 of each year. Interest will, subject to TSX Venture Exchange ("TSXV") approval, be paid annually in Common Shares and paid on December 31 of each year, with the last interest payment to be paid on the fourth anniversary of the Closing Date (the "Maturity Date"). Subject to TSXV approval, the conversion price with respect to the Common Shares issued as payment in kind on account of interest shall be the market price of the Common Shares on the business day immediately prior to the conversion date of such interest payment. Notwithstanding the foregoing, in the event that the TSXV does not approve the payment of interest in Common Shares for any particular interest payment period, such interest shall instead be paid in cash pursuant to the debenture indenture to be entered into between the Company and the debentureholders.
The Debentures will be convertible into Common Shares at the option of the debentureholder at any time and from time to time prior to the Maturity Date upon such holder providing five (5) business days' notice to the Company. The conversion price with respect to the Common Shares issued upon conversion of Debentures is $0.58 per Common Share. Debentureholders converting their Debentures will be entitled to receive accrued and unpaid interest ??thereon ?for the ?period from and including the date of the latest interest payment ??date, to and ?including the date of conversion?.
Any outstanding principal amount of the Debentures not converted prior to the Maturity Date will be repaid by the Company, at the election of the holders of the Debentures, in cash or Common Shares on the Maturity Date.
Each Warrant entitles the holder thereof to acquire one Common Share (each, a "Warrant Share") at an exercise price of $0.76 per Warrant Share (the "Exercise Price") for a period of 36 months from the closing date (the "Expiry Date"). Any Warrants not exercised prior to the Expiry Date shall be deemed to be void and of no further force and effect.
The Debentures will rank subordinate to any and all current secured indebtedness and senior to any and all current and future unsecured indebtedness of the Company and any and all future secured indebtedness of the Company.
The closing of the Offering is currently expected to occur on or about April 23, 2020, but is at the discretion of the Company and is subject to certain conditions including, but not limited to, receipt of approval of the TSXV as well as finalization and execution of definitive documentation.
AltaCorp Capital Inc. ("AltaCorp") is participating in this Offering as an advisor to the Company. AltaCorp is a subsidiary of ATB Financial ("ATB"), which entered into a credit agreement with the Company for access to debt financing of up to CAD$25 million on November 18th, 2019 (the "Credit Agreement"). ATB has consented to the Offering pursuant to the terms of the Credit Agreement. As part of the Offering, the Company and ATB have agreed to amend the terms of the Credit Agreement (the "Amending Agreement"). The Amending Agreement amends, among other things, the following:
the CAD$3.5 million cash collateral account put into place on the closing of the Credit Agreement will be used to permanently paydown the credit facilities under the Credit Agreement on a pro-rata basis;
the inclusion of certain cash-flow reporting requirements and additional certification requirements;
the reduction of certain baskets under the Credit Agreement, including permitted financial assistance and permitted investment baskets being reduced from CAD$15 million to CAD$9.5 million; and
the entering into of a subordination agreement between the senior lenders under the Credit Agreement and the debentureholders under the Offering.
"Despite the challenging capital markets environment, we are extremely fortunate to announce this financing and to have continued support from management and insiders who have been instrumental in Flowr's founding, strategic direction and financing since inception," said Vinay Tolia, Flowr's CEO. "This capital is expected to enable Flowr to become cash flow positive in H2 2020 as we build on our focus of delivering premium dry flower to the Canadian marketplace driven by our flagship product BC Pink Kush and other high THC strains we will be launching imminently as all of our 20 grow rooms in our Kelowna 1 facility will soon be in harvest cycles. We expect to continue to achieve premium price points in the market with our optimized library of high THC strains. Future revenue growth will be further enhanced with contributions from Holigen given the recent receipt of our EU GMP license in Portugal."
A material change report in respect of the Offering is expected to be filed less than 21 days before the expected Closing Date, which the Company believes is reasonable in the circumstances in order to facilitate an expeditious closing and quicker improvement in the Company's balance sheet and financial position.
FOURTH QUARTER 2019 RESULTS RELEASE AND CONFERENCE CALL
The Company will release its fourth quarter 2019 results after the close of the financial markets on Wednesday, April 29th, 2020, which will be followed by a conference call and webcast to review these results on Wednesday, April 29th at 5:30pm Eastern Time.
Conference call and webcast details are as follows:
Toll Free: 1-833-227-5845
Toll/International: 1-647-689-4072
Webcast: flowrcorp.com/investors
Conference call replay details are as follows:
Toll Free: 1-800-585-8367
Toll/International: 1-416-621-4642
Passcode: 6296956
Webcast: flowrcorp.com/investors
The replay of the conference call will be available through midnight on Wednesday, May 6, 2020.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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 that is currently under construction. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a license for cannabis cultivation in Portugal and operates GMP licensed facilities in Portugal and Australia."
Sam Dan
4 years ago
Finally, full disclosure from management so that shareholders can see the status of the company-its potential and plannings!
"THE FLOWR CORPORATION ANNOUNCES RESTRUCTURING PROGRAM AND PROVIDES CORPORATE UPDATE
The Flowr Corp. has restructured approximately 25 per cent of its work force globally, which is expected to result in an annual reduction of head count expenses in excess of approximately $6-million. In an effort to tighten the timeline toward becoming cash flow positive in second half 2020, the company has decided to focus its resources near term on the Premium Canadian dried flower market, specifically to continue building on the positive sales momentum it has been seeing with its Flowr-branded B.C. Pink Kush and other high THC (tetrahydrocannabinol) strains, expected to be launched in the marketplace in 2020.
"The changes we announced today were part of an ongoing comprehensive review of our operations to reduce costs, focus on the highest-value priorities and accelerate cash flow generation, in addition to some of the anticipated macroeconomic headwinds stemming from COVID-19. This was an extremely difficult decision that we did not take lightly and would like to thank former and current employees for their tremendous contributions. The resulting company will be a leaner, more efficient organization. Our fundamental thesis that consumers demand quality dried flower has been proven correct as evidenced by heavy demand for our flagship strain, B.C. Pink Kush. We also look forward to the release of our newest high THC strains B.C. Louis XIII and B.C. Tahoe OG in the coming months. Given that our Kelowna 1 facility is now fully operational, we expect to see a step function change in production and sales beginning in the second quarter. While we continue to be very optimistic about our derivative form factor product plans, in light of the current macroenvironment, we feel it's prudent to delay further material investments in these areas and focus on our core competency -- producing premium indoor-grown dried flower and building the Flowr brand in the Canadian recreational market," commented Vinay Tolia, chief executive officer of Flowr.
Operational updates: Canada
The company has advanced its Kelowna campus to be a single hub for all aspects of cultivation, processing and packaging to service the Canadian cannabis market. The company has only invested in either highly controlled indoor growing environments for premium high THC dried cannabis (Kelowna 1) or low-cost outdoor and shade-house production for extraction (Flowr Forest). Notably, the company has not invested in traditional greenhouses, which are more expensive to build and operate, because it believes that they cannot produce premium smokable products. Flowr has proven that low-cost outdoor and shade-house grows provide quality inputs, especially for use in extraction. Recently, the company launched new corporate and Canadian recreational websites, consistent with its brand marketing strategies.
Kelowna 1 indoor facility:
On Feb. 24, 2020, the company announced it had received approval from Health Canada to open an additional 10 grow rooms, bringing the total to 20 at the facility. The ultimate production capacity is expected to be approximately 10,000 kilograms of premium cannabis when fully optimized.
Since that announcement, the company has propagated seven of the newly licensed grow rooms with the remaining three to be planted within the next 30 days.
The company has taken preventative measures to remain a reliable supply chain partner during the COVID-19 pandemic.
Outdoor and shade-house facility (Flowr Forest):
The company has decided to delay the launch of its live resin product until its Canadian dried flower operations are generating positive cash flow.
As a result, the company has decided to selectively plant outdoors to enable optionality for a full outdoor grow to support its revised live resin launch plans.
Flowr/Hawthorne research and development facility
Flowr and Hawthorne have entered a strategic R&D alliance to build a state-of-the-art, 45,000-square-foot R&D facility, the first of its kind in Canada:
Construction of the R&D facility is substantially complete. The company submitted the evidence package to Health Canada to license the first floor on Feb. 24, 2020, and expects to receive licensing approval in second quarter 2020.
Once operational, the R&D facility will allow Flowr to stay on the leading edge of cultivation technology and maximize plant health and yields.
Global operations
Portugal
Sintra, Portugal, indoor facility
Sintra is a highly controlled indoor cultivation, extract processing and finished product packaging facility. Construction of the facility is substantially complete with three of the six total grow rooms currently operational. Obtaining GMP (good manufacturing practice) certification is both a critical step to the production and sales of a high-value medicinal product, which can be distributed to any country within the European Union and is Flowr's priority within its Holigen business.
The company had its final GMP inspection in September, 2019, and still anticipates receipt of EU-GMP certification.
Construction of the Sintra facility is substantially complete.
Aljustrel, Portugal
Aljustrel is a seven-million-square-foot outdoor cultivation facility, which has been deemed a project of national interest by the Portuguese government, the only cannabis-related project to receive this designation. The company expects a phased ramp-up of production at Aljustrel to match capacity with the revenue potential of an expanding European medicinal cannabis market.
The company plans to plant over one million square feet of cultivation area in 2020 with a harvest expected in fourth quarter 2020.
Australia
The company maintains its GMP-compliant packaging facility in Australia. Flowr expects its assets in Australia to be a hub for distribution and sales of medicinal cannabis into the Australasian region:
During the first quarter, Holigen Australia received a modest shipment of premium dried flower from its Kelowna 1 facility to be sold and distributed into the Australian market.
Financial update
Further to the company's announcement on Nov. 19, 2019, relating to the entering into of a credit agreement with ATB Financial for access to debt financing of up to $25-million, on Feb. 28, 2020, the company completed its second drawdown of $3.2-million from its term facility and $500,000 from its revolving operating credit facility under the credit agreement. Furthermore, the company is assessing various financing alternatives to address near-term working capital needs.
About The Flowr Corp.
Flowr is a Toronto-headquartered cannabis company with operations in Canada, Europe and Australia. Its Canadian operating campus, located in Kelowna, B.C., includes a purpose-built, GMP-designed indoor cultivation facility; an outdoor and greenhouse cultivation site; and a state-of-the-art R&D facility that is currently under construction. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a licence for cannabis cultivation in Portugal and will operate GMP-designed manufacturing facilities in Portugal and Australia.
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.
Sam Dan
4 years ago
Fabulous news for Flower and naturally the collapse of the Market drops the share price.
Frustrating isn't it!!
"THE FLOWR CORPORATION RECEIVES HEALTH CANADA APPROVAL TO DOUBLE CURRENT CAPACITY AT FLAGSHIP KELOWNA 1 FACILITY WHICH IS NOW FULLY OPERATIONAL
The Flowr Corp. has received approval from Health Canada to open 10 additional grow rooms at its Kelowna 1 cultivation facility, bringing the total to 20, doubling the company's capacity to grow premium, indoor flower at the facility and enabling automation to lower cost of goods sold. This is the final approval required for full operation of the facility.
Kelowna 1 is Flowr's premier purpose-built indoor cultivation facility located in the Okanagan Valley of British Columbia. Following receipt of the new Health Canada approval, the Company plans to immediately begin phasing in the propagation of these additional grow rooms and expects the 85,000 square foot facility to produce, at ultimate capacity, approximately 10,000 kilograms of premium cannabis flower on an annualized basis.
"The full licensing of Kelowna 1 is a major milestone for Flowr. For the first time since we broke ground on the facility we won't be operating out of a construction site. We continue to see growing demand for our premium cannabis products led by our flagship strain, Pink Kush. Furthermore, we expect to see an improvement in operating efficiency as we reach scale coupled with the commissioning of our automated packaging line," said Vinay Tolia, CEO of Flowr.
Flowr's cultivation facilities are being constructed to Good Manufacturing Practice (GMP) standards. They employ proprietary designs and systems to create a highly controlled growing environment that the Company expects will enable it to produce a large portion of its premium cannabis without requiring irradiation to meet Health Canada standards. The Company's cultivation team follows exacting protocols throughout the growing process then carefully harvests, trims and cures its products, seeking to deliver a premium experience for consumers.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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 that is currently under construction. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a license for cannabis cultivation in Portugal and will operate GMP-designed manufacturing facilities in Portugal and Australia."
Sam Dan
4 years ago
IMPORTANT CHANGES IN MASNAGEMENT
"Flowr appoints Hossu CFO, Klein chief strategist
2020-01-27 16:15 CT - News Release
Shares issued 107,077,825
FLWR Close 2020-01-27 C$ 1.85
Mr. Vinay Tolia reports
THE FLOWR CORPORATION WELCOMES IRINA HOSSU AS CHIEF FINANCIAL OFFICER AND ANNOUNCES MANAGEMENT CHANGES
The Flowr Corp. has appointed Irina Hossu as its new chief financial officer on March 29, 2020. Current chief financial officer Alex Dann will remain with the company until the end of March, 2020. The company is also announcing the departures of chief research and innovation officer, Jason Broome, and chief strategy officer, Laurence Levi. Current chief policy and medical officer Dr. Lyle Oberg will transition to an advisory role and remain on the board of directors of Flowr. Board chairman Steve Klein will again assume the title of chief strategist and oversee the strategic direction of the company moving forward.
"As the company continues to grow and execute on its business plan, Flowr is realigning its leadership structure to drive improved operational and financial efficiencies. Ms. Hossu, as CFO, will be responsible for the stewardship of Flowr's finance department, with an emphasis on financial strategy, capital allocation planning and growing Flowr's domestic and international businesses," said Flowr's Chief Executive Officer Vinay Tolia.
"We are thrilled to welcome Irina to the Flowr family where her extensive experience in strategic finance leadership roles with multinational organizations will have a positive impact at all levels of our Company as we move forward through our next phase of growth. Furthermore, her experience across a variety of industries, including consumer-packaged goods and beverage and alcohol, will better enable Flowr to execute on our ambitious international growth plans."
"On behalf of the Board we would like to thank Alex Dann, Jason Broome, Laurence Levi and Lyle Oberg, most of whom joined Flowr around the time of its founding and have been integral members of the management team. They each played a significant role in taking the Company from a startup to a public company with operations across several continents. We are very excited to have our Chairman Steve Klein return to overseeing the strategic direction of the Company. Steve has been instrumental in funding the Company as well as guiding its strategic direction since inception. With the recent acquisition of Holigen, we have advanced our efforts to become a major global player in the years to come and are ready to embark on the next phase of growth for the Company."
About Ms. Hossu
Ms. Hossu brings over 15 years of experience in the consumer-packaged goods, beverage and alcohol and financial technology industries, holding senior roles in finance and strategic planning. Most recently, Ms. Hossu served as Vice President Finance, Corporate Payments & Emerging Markets of WEX, a global leader in financial technology solutions. In that role she led the finance organizations across five continents, and was responsible for developing the strategic five-year plan, the integration of two global acquisitions, multinational financial reporting and controls, including SOX compliance, and continuous process improvement including forecasting, capital allocation and financial strategy. Prior to WEX, she was Director of Finance at Revlon where she was a member of the Canadian Leadership team setting strategic direction for Revlon Canada. Additionally, Ms. Hossu has held senior finance roles at Molson Coors & Xerox Canada.
Ms. Hossu holds an MBA from Wilfrid Laurier University, a Bachelor of Commerce from McMaster University, is a Chartered Professional Accountant and a Certified Management Accountant.
In addition, Flowr also announced today that the Company has agreed to grant, subject to the approval of the Board, an aggregate of 275,000 incentive stock options (the "Options") to an officer of the Company. The exercise price for each Option shall be the closing price of the Company's common shares on the trading day immediately preceding the officer's first day of employment. The Options will vest as to thirty-three and one-third percent (33-1/3 per cent) on each anniversary of the date of commencement of employment for the officer.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. 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 that is currently under construction. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a license for cannabis cultivation in Portugal and will operate GMP-designed manufacturing facilities in Portugal and Australia."
Sam Dan
4 years ago
Why has no one posted this amazing news. Or did I miss It!
Shoppers Drug Mart has expanded its online medical cannabis sales platform to cover five new Canadian provinces and territories.
The country’s largest drug store group today announced that it will now sell to patients in Newfoundland & Labrador, New Brunswick, Prince Edward Island, Manitoba, and Saskatchewan.
Shoppers Drug Mart is not permitted to sell medical cannabis at its 1,300 brick-and-mortar stores, but it commenced ecommerce sales in Ontario in January 2019. It then began selling medical cannabis in Alberta in April.
It has partnered with 12 licensed producers to secure medical cannabis products that it sells direct to patients via a dedicated section of its website, Medical Cannabis by Shoppers. Jeff Leger, president at Shoppers Drug Mart, said Canadian patients have been left behind by traditional retail models, arguing that they need more convenient access to medical marijuana.
“We expanded Medical Cannabis by Shoppers nationally to provide enhanced service to more patients so they can feel empowered to access medical cannabis through the medical market with the guidance of healthcare professionals,” he said.
The firm cited Statistics Canada data and said that 1.1 million Canadians use cannabis for medical purposes, but more than 800,000 of them are self-medicating with recreational or illegal cannabis, without the guidance of a healthcare professional. It believes Medical Cannabis by Shoppers can redress the balance and allow Canadians to gain access to products that are safer and better suited to their medical conditions.
Shoppers uses a firm called TruTrace Technologies to run a medical cannabis strain traceability scheme that provides patients seed-to-sale information. Producers Aphria and WeedMD have signed up to partner with the retailer for the scheme, while Deloitte has also been brought in to audit the process.
A Shoppers Drug Mart Medical Advisory Board also provides pharmacists with education and guidance on clinical evidence on the effectiveness of medical cannabis. The firm has developed clinical algorithms that help its advisors select the correct strain for patients. It can also connect patients to a licensed physician or nurse practitioner to assess whether a patient is an ideal candidate for medical cannabis.
Sam Dan
5 years ago
Time for a review of where FLWR is after the news that the Holigen acquisition has been completed.
First I repeat what I posted weeks ago “. The disaster that is TRST has definitely tainted, unfairly, most canabiss companies. Flower had to back off of a PP because of Market weakness. However, they hope to complete a bought deal by August 8’
The announced acquisition and licensing of the Portugal assets opens up the European and Asian Markets for Flower to create greater revenue streams”
Management had the foresight to pursue the PP, admittedly at a lower price than anticipated, but adequate to complete the funding needed.
IMO the further drop in share price is a golden opportunity
Three significant contributions to the future success of FLWR
1-The combination of our extensive cannabis cultivation know-how and Holigen’s extensive pharmaceutical experience has the potential to create tremendous value. With an expected annual capacity of 500,000 kilograms, the Aljustrel cultivation asset in Portugal should allow FLWR to be a significant producer in the global medical cannabis and active pharmaceutical ingredient (API) markets, initially in Europe and Australia-Asia,” said Vinay Tolia, Flowr’s Chief Executive.
2-Once the Kelowna plant is completed hopefully, before year end, the production of cannabis will enable FLWR provide their products to the Shoppers Drug store chain which comprises more than 1,300 stores in Canada,This illustrates the very significant growth in revenue, which is possible after the rollout. Surely, the fact that Loblaws has chosen FLWR should bring confidence to investors’
3- The addition of Mr.D. Aronowitz to the Board and his connection to Scotts Miracle Grow
Time will tell if I am Right
Sam Dan
5 years ago
Major acquisition completed
"(“Flowr” or the “Company”) is pleased to announce the completion of the acquisition of the remaining 80.2% interest in Holigen Holdings Limited (“Holigen”) by way of a share purchase agreement, as previously announced on June 24, 2019 (the “Acquisition”).
“We are excited to complete the acquisition of Holigen and thereby add operations in Portugal and Australia to our existing Canadian platform. The combination of our extensive cannabis cultivation know-how and Holigen’s extensive pharmaceutical experience has the potential to create tremendous value. With an expected annual capacity of 500,000 kilograms, the Aljustrel cultivation asset in Portugal should allow us to be a significant producer in the global medical cannabis and active pharmaceutical ingredient (API) markets, initially in Europe and Australia-Asia,” said Vinay Tolia, Flowr’s Chief Executive Officer. “We continue to see the cannabis market bifurcating into premium, superior quality adult use products, where legal, and a global medical opportunity that will require massive production scale and deep GMP expertise. With the completion of this acquisition, the subsequent ramp-up of production at Aljustrel, and the continued buildout of our campus in Kelowna, Flowr is strategically positioned to service the global cannabis market from an efficient footprint.”
Total consideration for the Acquisition included:
Cash consideration of CAD $6,299,423.76;
Issuance of 32,632,545 Series 1 Voting Convertible Redeemable Preferred shares (“Consideration Shares”) of the Company. The Consideration Shares shall convert into common shares of the Company (“Common Shares”), on a 1:1 basis, subject to the following milestones:
10% of the Consideration Shares were automatically converted into Common Shares immediately after issuance on Closing;
40% of the Consideration Shares will automatically convert into Common Shares six (6) months from the Closing; and
The remaining 50% of the Consideration Shares will convert into Common Shares when and if Holigen achieves certain milestones related to the lodging of product applications and achieving certain planting targets in Australia and Portugal;
The purchase of certain loans up to a maximum amount of CAD $365,188.73; and
Flowr has also agreed to pay the aggregate amount of €1,378,106.53 to certain of Holigen’s creditors.
Except as provided by law, the holders of Consideration Shares are entitled to vote with the holders of outstanding Common Shares and in any such vote, each Consideration Share shall be entitled to a number of votes equal to the number of Common Shares into which such Consideration Share is convertible.
About The Flowr Corporation
Flowr, through its subsidiaries, holds cannabis production and sales licenses granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr’s investment in research and development along with its sense of craftsmanship and a spirit of innovation is expected to enable it to provide premium-quality cannabis that appeals to the adult-use recreational market and addresses specific patient needs in the medicinal market."
Sam Dan
5 years ago
AS ADVERTIZED GOOD NEWS TODAY
Market recognizes a bargain
" (the “Company” or “Flowr”) is pleased to announce that it has closed its previously announced short form prospectus offering (the "Offering") of units of the Company (the "Offered Units"). A total of 10,610,000 Offered Units, consisting of one common share and one half of one common share purchase warrant, have been issued at a price of C$4.10 per Offered Unit, for aggregate gross proceeds of $43,501,000.
Each whole warrant will be exercisable to acquire one common share (a “Warrant Share”) for a period of 24 months following the closing of the Offering at an exercise price of $5.00 per Warrant Share. In the event that the volume weighted average trading price of the common shares for ten (10) consecutive trading days exceeds $6.15, the Company has the right to accelerate the expiry date of the Warrants upon not less than fifteen (15) trading days’ notice, or such longer period as the TSXV Venture Exchange (the “TSXV”) may require. The TSXV has conditionally approved the listing of the Warrants, subject to standard listing conditions. The Warrants are expected to commence trading on or about August 12, 2019.
The Offered Units were sold pursuant to an underwriting agreement with a syndicate of underwriters led by GMP Securities L.P., and included BMO Capital Markets, AltaCorp Capital Inc., Clarus Securities Inc., and Sprott Capital Partners L.P.
The Company has granted the underwriters an option (the “Over Allotment Option”) to purchase up to an additional 1,591,500 Offered Units on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes. In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $50,026,150.
The net proceeds of the Offering are expected to be used to fund, in part, Flowr’s acquisition of the approximately 80% equity interest of Holigen Holdings Limited (“Holigen”) that it does not already own, working capital required for the construction and development of certain of Holigen’s and the Company’s cultivation and production facilities, and for general corporate purposes. In the event that the closing of the acquisition of Holigen does not occur, the net proceeds from the Offering (including any proceeds from the exercise of the Over-Allotment Option) will be used to fund the Company’s working capital, including construction and development of the Company’s facilities and for general corporate purposes.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. 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 State in which such offer, solicitation or sale would be unlawful.
About the Flowr Corporation
Flowr, through its subsidiaries, holds cannabis production and sales licenses granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr expects to provide premium-quality cannabis to the adult-use recreational market and the medicinal market"
Sam Dan
5 years ago
Another significant project between Shoppers Drugs and Flower
" The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) and TruTrace Technologies Inc. (CSE: TTT; OTC: TTTSF) ("TruTrace") today announced that Flowr joined the Shoppers Drug Mart (“Shoppers”) medical cannabis verification pilot program (the “Pilot Program”), which was announced last month at the World Cannabis Congress. The Pilot Program is intended to increase transparency, interoperability and product identification within the medical cannabis industry.
The Pilot Program uses TruTrace’s StrainSecure™ technology as a central hub for identity management, asset tracking, validation, and product authentication. StrainSecure™ will also serve as a master registry for standardized testing, product verification, and quality assurance.
Under the StrainSecure™ program, the TruTrace team collects plant testing data and performs genomic verification in plant batches which are then registered in a blockchain-enabled database for intellectual property protection and strain validation. All information gathered from the plants, including their molecular and chemical makeup, can be tracked via the program
“Our medical cannabis products in Canada are available through Shoppers as we believe the pharmacy model offers significant benefits to patients. We fully support the objectives of this Pilot Program and look forward to working with our partners to ensure patients have access to medicinal cannabis they can trust,” said Dr. Lyle Oberg, Flowr’s Chief Medical and Policy Officer. “Medical cannabis patients expect that their medication is safe, standardized and of high quality, and we believe this formal traceability program can play an important part in the overall process of building that trust.”
“We are very pleased to see Flowr join the Pilot Program and affirm its commitment to achieving the highest standards of transparency and accountability,” said TruTrace Technologies CEO Robert Galarza. “It is more important than ever to provide assurance to patients about the origins and quality of their cannabis.”
Flowr has a supply agreement with Shoppers to supply its FlowrRx brand of medical cannabis products. Patients can visit Shoppers’ ecommerce site, shoppersdrugmart.ca/cannabis, to learn more.
Sam Dan
5 years ago
nother PP startedJuly 26, 2019 THE FLOWR CORPORATION $43,501,000 10,610,000 Units Price: $4.10 per Unit This short form prospectus (the “Prospectus”) of The Flowr Corporation (“Flowr”, the “Corporation”, “we”, “us”, “our” and similar terms) qualifies the distribution of 10,610,000 units of the Corporation (the “Units”) at a price of $4.10 per Unit (the “Offering Price”) for gross proceeds of $43,501,000 (the “Offering”). Each Unit is comprised of one common share in the capital of the Corporation (a “Common Share”, and each Common Share comprising part of a Unit, a “Unit Share”) and one half of one Common Share purchase warrant (each whole such warrant, a “Warrant”), with each Warrant entitling the holder thereof to purchase one additional Common Share (each, a “Warrant Share”) at a price of $5.00 per Warrant Share at any time on or before 5:00 p.m. (Toronto time) on the date that is 24 months following the date of closing of the Offering (the “Expiry Date”), subject to adjustment in certain events. In the event that the volume weighted average trading price of the Common Shares on the TSX Venture Exchange (“TSX.V”) exceeds $6.15 for ten consecutive trading days, the Corporation shall have the right to accelerate the expiry date of the Warrants upon not less than 15 trading days’ notice. The Offering is being made pursuant to an underwriting agreement (the “Underwriting Agreement”) dated July 26, 2019 among the Corporation and GMP Securities L.P., as lead underwriter and sole bookrunner (the “Lead Underwriter”), BMO Nesbitt Burns Inc., AltaCorp Capital Inc., Clarus Securities Inc. and Sprott Capital Partners LP (collectively, the “Underwriters” and, individually, each an “Underwriter”). The Warrants will be governed by a warrant indenture (the “Warrant Indenture”) to be entered into on or before the Closing Date between the Corporation and Computershare Trust Company of Canada, as warrant agent (the “Warrant Agent”).See “Plan of Distribution”. The issued and outstanding Common Shares are listed and posted for trading on the TSX.V under the symbol “FLWR”. On July 19, 2019, the last trading day prior to the announcement of the Offering, the closing price of the Common Shares on the TSX.V was $4.82. On July 25, 2019, the last trading day prior to the date of this Prospectus, the closing price of the Common Shares on the TSX.V was $4.11. The Corporation has applied to list the Unit Shares, the Warrants and the Warrant Shares as well as any securities issued pursuant to the exercise of the Over-Allotment Option (as defined below) on the TSX.V. Listing on the TSX.V is subject to the Corporation fulfilling all of the listing requirements of the TSX.V.
The Units are being offered to the public in all of the provinces of Canada except Québec, and on a private placement basis in the United States in an offering exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws. The Underwriters, as principals, conditionally offer the Units, subject to prior sale, if, as and when issued by the Corporation and accepted by the Underwriters in accordance with the conditions contained in the Underwriting Agreement referred to under “Plan of Distribution”, subject to the approval of certain Canadian legal matters on behalf of the Corporation by Fasken Martineau DuMoulin LLP and on behalf of the Underwriters by Borden Ladner Gervais LLP. Subscriptions for the Units will be received subject to rejection or allotment, in whole or in part, and the Underwriters reserve the right to close the subscription books at any time without notice. Closing of the Offering is expected to take place on or about August 8, 2019 or such other date as may be agreed upon by the Corporation and the Lead Underwriter, but in any event, not later than 42 days after the date of the receipt for the (final) short form prospectus (the “Closing Date”). In connection with the Offering, and subject to applicable laws, the Underwriters may over allot or effect transactions that are intended to stabilize or maintain the market price of the Common Shares at levels other than that which might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. See “Plan of Distribution”. After the Underwriters have made reasonable efforts to sell the Units at the Offering Price, the Underwriters may decrease the Offering Price for the Units and may further change the Offering Price from time to time to amounts no greater than the Offering Price. In the event the Offering Price of the Units is reduced, the compensation received by the Underwriters will be decreased by the amount that the aggregate price paid by the purchasers for the Units is less than the gross proceeds paid by the Underwriters for the Units. Any such reduction will not affect the proceeds received by the Corporation. It is anticipated that the Units will be delivered under the book-based system through CDS Clearing and Depository Services Inc. (“CDS”) or its nominee and deposited in electronic form, or will otherwise be delivered to the Underwriters, registered as directed by the Lead Underwriter, on the Closing Date. Except in limited circumstances, a purchaser of Units will receive only a customer confirmation from the registered dealer from or through which the Units are purchased and who is a CDS depository service participant. CDS will record the CDS participants who hold the Units on behalf of owners who have purchased the Units in accordance with the book-based system. No definitive certificates will be issued unless specifically requested or required. Notwithstanding the foregoing, Units issued to qualified institutional buyers (as defined in Rule 144A under the U.S. Securities Act, “Qualified Institutional Buyers”) will be issued in definitive certificated form. See “Plan of Distribution”. An investment in the Units is speculative and involves a high degree of risk and should only be made by persons who can afford the total loss of their investment. A prospective purchaser should therefore review this Prospectus and the documents incorporated by reference herein in their entirety and carefully consider the risk factors described under the section “Risk Factors” in this Prospectus, prior to investing in the Units. See “Caution Regarding ForwardLooking Statements” and “Risk Factors”. There is currently no market through which the Warrants may be sold and purchasers may not be able to resell the Warrants purchased under this Prospectus. This may affect the pricing of the Warrants in the secondary market, the transparency and availability of trading prices, the liquidity of the Warrants and the extent of issuer regulation. See “Risk Factors”. Prospective purchasers are advised to consult their own tax advisors regarding the application of Canadian federal income tax laws to their particular circumstances, as well as any other provincial, foreign and other tax consequences of acquiring, holding or disposing of the Units. Prospective investors should be aware that the acquisition of the Units may have tax consequences in Canada. Such tax consequences for investors may not be described fully herein. The Corporation does not have, and until federally legal does not intend to engage in, any direct, indirect or ancillary involvement in the United States cannabis industry (as described in CSA Staff Notice 51-352 (Revised) Issuers with U.S. Marijuana-Related Activities). The registered and head office of the Corporation is located at 461 King Street West, Floor 2, Toronto, Ontario M5V 1K4.
Sam Dan
5 years ago
New addition to management looks like a promising appointment
"THE FLOWR CORPORATION ENHANCES EXECUTIVE LEADERSHIP TEAM
David Aronowitz, a former senior executive at The Scotts Miracle-Gro Company, has joined The Flowr Corp. as chief of staff. In this new role, Mr. Aronowitz will be based at the Company's Kelowna Campus and work closely with Tom Flow, Flowr's Founder and Managing Partner, across a range of strategic and tactical areas critical to the successful ramp-up of the business.
Mr. Aronowitz brings over 30 years' experience as a Board member, chief executive officer and Board counselor, chief legal officer and corporate secretary for both public and private companies in a variety of industries including service, consumer goods, retail and manufacturing businesses with significant experience internationally, both in Europe and Asia.
"We are excited for David to join our team and are looking forward to the contributions he can make based on his vast experience across numerous sectors applicable to the cannabis industry," commented Mr. Flow. "We worked closely with David when he was a senior executive at Scotts, where he devised the concept of teaming with Flowr to build and operate a one-of-its-kind cannabis research and development facility on our Kelowna Campus. Without his creativity and determination, this innovative facility would never have come into existence."
Prior to joining Flowr and since 2013, Mr. Aronowitz served as Head of Mergers & Acquisitions ("M&A") of Scotts where he led all M&A activities including the deployment of over USD$1 billion in capital. Concurrently, he also served as Chief of Staff to Scotts' Chief Executive Officer. Between 2008 and 2013, Mr. Aronowitz was the Chief Executive Officer and President of the Gnoesis Group, LLC, a legal staffing and consulting company. He was a Director of Glimcher Realty Trust, which traded on the New York Stock Exchange, from 2006 until 2015, when the company was acquired by Washington Prime Group.
Mr. Aronowitz holds a Bachelor of Arts from Haverford College and a Juris Doctor from Yale Law School.
In addition, Flowr also announced today that the board of directors of the Company has approved the granting of 150,000 incentive stock options (the "Options") and 50,000 restricted share units (the "RSUs") to an officer of the Company. The Options are exercisable at a price of CAD$4.00 per share for a period of five years. The Options and RSUs will vest as to thirty-three and one-third percent (33?%) on each anniversary of the date of commencement of employment for the officer.
About the Flowr Corporation
Flowr, through its subsidiaries, holds cannabis production and sales licenses granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr expects to provide premium-quality cannabis to the adult-use recreational market and the medicinal market.
Sam Dan
5 years ago
In spite of problems, management has enough acceptance that new financing has been successfully achieved."FLOWR CORPORATION ANNOUNCES $43.5 MILLION BOUGHT DEAL FINANCING
The Flowr Corp. has entered into an agreement with a syndicate of underwriters led by GMP Securities LP, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, pursuant to the filing of a short form prospectus, an aggregate of 10.61 million units of the company, at a price of $4.10 per unit for aggregate gross proceeds to Flowr of $43,501,000.
Each Unit will be comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share (a "Warrant Share") for a period of 24 months following the closing of the Offering (the "Closing") at an exercise price of $5.00 per Warrant Share. In the event that the volume weighted average trading price of the Common Shares for ten (10) consecutive trading days exceeds $6.15, the Company shall have the right to accelerate the expiry date of the Warrants upon not less than fifteen (15) trading days' notice.
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,591,500 Units at the Offering Price, exercisable in whole or in part, at any time, and from time to time, on or prior to the date that is 30 days following the Closing. If this option is exercised in full for additional Units, an additional $6,525,150 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $50,026,150.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The Company intends to use the net proceeds from the Offering to fund, in part, its acquisition of the approximately 80% equity interest of Holigen Holdings Limited that it does not already own, working capital required for the construction and development of certain of Holigen's and the Company's cultivation and production facilities, and for general corporate purposes. The Offering is expected to close on August 8, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
About The Flowr Corporation
Flowr, through its subsidiaries, holds cannabis production and sales licenses granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr expects to provide premium-quality cannabis to the adult-use recreational market and the medicinal market.
Sam Dan
5 years ago
Good news
KELOWNA, British Columbia, July 15, 2019 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSXV: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) is pleased to announce receipt of a second site cultivation license from Health Canada for its Flowr Forest project. The Company has begun transplanting select cultivars and is on track for a first harvest in the fourth quarter of 2019. Flowr expects to produce approximately 10,000 kilograms per annum from Flowr Forest once fully optimized and operational.
Flowr Forest, which is located on the Company’s Kelowna campus, has 42 greenhouses totaling 189,000 square feet situated within a total licensed outdoor grow area of more than 530,000 square feet. The outdoor cultivation area planted is expected to be 150,000 square feet and can be expanded to include an incremental 160,000 square feet. The Company in total has over 750,000 square feet dedicated to Flowr Forest’s current and future operations and has a right of first refusal on an additional 850,000 square feet located immediately to the north and contiguous with the currently licensed area.
“We are extremely pleased to have a cultivation license for Flowr Forest in time to deliver production in 2019. Getting a second site license required a tremendous effort from our whole team as well as working collaboratively with Health Canada to get to this stage in a timely manner. All site work was already complete, so we are in the process of transplanting cultivars and expect an additional 10,000 kilograms of production on top of what we will produce at our Kelowna 1 indoor facility,” said Vinay Tolia, Flowr’s Chief Executive Officer. “By having our outdoor and greenhouse areas on the same campus as our indoor facilities, our cultivation team works from a single location and this is a key to driving efficiency and optimization in our Canadian operations.”
Once fully optimized and operational, the 10,000 kilograms per annum doubles the expected capacity of grow areas currently operating and/or under development at Flowr’s Kelowna campus. The Company’s Kelowna 1 indoor facility (“K1 Facility”) is expected to produce 10,000 kilograms per annum once construction is complete and the operation is fully optimized. Construction of the K1 Facility is on track for completion by the end of the third quarter of 2019.
Product Line Expansion Plans
Flowr remains committed to producing differentiated products and its dried flower products are expected to continue to be sourced exclusively from the purpose-built indoor facilities in Kelowna, whereas cannabis cultivated within Flowr Forest is expected to support Flowr’s forthcoming extract business. Furthermore, with the recently announced changes to the regulatory framework and proposed timing for additional form factors to reach consumers in late 2019 or early 2020, the licensing of Flowr Forest positions the Company for a timely launch of its expanded adult-use recreational product line.
The Company expects its first new product launch from Flowr Forest to be a live resin vape offering. The Company believes its deep expertise in cultivating superior plants positions it to produce exceptional flower for use in extraction. Building on Flowr’s existing expertise, the Company is investing in the people, processes, and infrastructure to deliver a live resin vape product that will meet the expectations of cannabis consumers in Canada.
Live resins are generated through specific and proprietary harvest, processing and extraction systems which together optimally preserve the full range of cannabinoids and aromatic characteristics of the source cannabis plant. The result is a cannabis concentrate with richly aromatic terpene profiles that are true to plant without the need for additional diluents, preservatives or flavouring.
The Company, therefore, believes that its live resin vape offering will represent an ideal product to showcase Flowr's superior cultivation expertise and that is expected to deliver consumers a similar experience, including taste and aroma, associated with Flowr’s dried flower products.
About The Flowr Corporation
Flowr, through its subsidiaries, holds cannabis production and sales licenses granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr’s investment in research and development along with its sense of craftsmanship and a spirit of innovation is expected to enable it to provide premium-quality cannabis that appeals to the adult-use recreational market and addresses specific patient needs in the medicinal market.
Sam Dan
5 years ago
Flowr Applies for NASDAQ Listing
Toronto, Ontario, Feb. 05, 2019 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSXV: FLWR) (OTC: FLWPF) (“Flowr” or the “Company”), a Canadian licenced producer of premium cannabis products, announced today that it has submitted an application to list its common shares on The NASDAQ Capital Market (“NASDAQ”) and has filed a Form 40-F Registration Statement with the U.S. Securities and Exchange Commission (“SEC”).
The listing of Flowr’s shares on the NASDAQ will be subject to a number of regulatory requirements, including registration of the common shares with the SEC and a determination by the NASDAQ that Flowr has satisfied all applicable listing requirements. Subject to approval for listing, the common shares will continue to trade on the TSX Venture Exchange (TSXV) under FLWR. A trading date will be made public once all regulatory formalities are satisfied.
"Flowr has made tremendous progress executing on its business plan since becoming a public company last year and we believe the Company is well positioned to pursue additional growth opportunities," said Vinay Tolia, Flowr’s Co-CEO. "A NASDAQ listing is an important step forward for Flowr because we believe it will broaden our access to international investors as we become a truly global company."
About Flowr
The Flowr Corporation (TSXV: FLWR) (OTC: FLWPF), through its subsidiaries, holds a cannabis production and sales licence granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own patented growing systems. Flowr’s investment in research and development along with its sense of craftsmanship and a spirit of innovation is expected to enable it to provide premium-quality cannabis that appeals to the adult-use recreational market and addresses specific patient needs in the medicinal market.
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