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."
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