The Flowr Corporation announced that the Company has closed on a fourth tranche of funding in the amount of C$703,000 pursuant to the Equity Line and Profit Share Agreement with Terrace Global Inc. 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,” said 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.
The Company’s press release dated August 28, 2020 contained a typographical error with respect to the number of common shares issued pursuant to the third tranche of funding under the Agreement. On August 28, 2020, the Company issued 673,077 common shares and an equal number of warrants.
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.
Terrace is a Canadian company focused on the development and acquisition of international cannabis assets. Its single-minded goal is to unlock value in new jurisdictionsFor more information about Terrace Global, please visit terraceglobal.ca.