[B]FLWR releases quarterly financials today and after close of Market Holds a conference call this afternoon
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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.
