Flower One Announces Equipment Lease Financing of up to US$30 Million

Published: February 12, 2019

Flower One Announces Equipment Lease Financing of up to US$30 Million

Flower One Holdings Inc. has entered into a Master Lease Agreement with Reich Bros Commercial Finance, for up to US$30,000,000 in lease financing for certain equipment at its 455,000 square-foot greenhouse and production facility in North Las Vegas, Nevada.

“As Flower One prepares to commence operations at our greenhouse and production facility, this lease financing provides us with additional financial flexibility,” stated Geoff Miachika, Flower One Chief Financial Officer.

The Agreement has a five-year term, with the first 12 monthly payments being the equivalent of interest only, followed by forty-eight equal payments, such that all amounts advanced under the lease facility are fully amortized by month 60. The Agreement includes a buyout right upon expiration of the term, and early buyout options at months 13, 25 and 37, at the Company’s discretion. The Company has completed an initial draw of US$10 million.