The Flowr Corporation provided an operational update at its facilities located in Portugal owned and operated by Flowr’s wholly-owned subsidiary, Holigen Holdings Limited.
“We still firmly believe that Holigen’s team and assets are a unique entry point into the European Union. The Sintra facility is one of very few E.U. GMP certified facilities on the continent. If a competitor wanted to enter the E.U. today they would face long lead times on regulatory approvals, construction, importation of genetics and assembly of a quality team with the requisite experience to be successful. With the relocation of Tom Flow to Portugal and our partnership with Cookies Creative Consulting and Promotions Inc. (“Cookies”), we believe that Holigen is poised for great success in the near-term,” commented Darryl Brooker, Chief Executive Officer of Flowr. “There are several reasons to be in Portugal – the regulatory landscape is changing, the cost structure is highly competitive and there are no real competitors in the premium cannabis market yet.”
“I have been involved in the planning, construction and operation of several of the world’s premier cannabis facilities and the Sintra facility is undoubtedly one of the best facilities in the world to grow premium, high THC cannabis,” commented Tom Flow, co-founder of Flowr and Chief Operating Officer. “In Portugal, I see not only a growing medical cannabis market but the discussions around an adult use regime are also very encouraging. At Holigen, we have built a facility that will be able to cater to both a medical cannabis regime by providing patients with consistent, high-quality product but we are also looking ahead to when there may be an adult use market and having a partnership with Cookies also lets us be ready for that change.”
Sintra Facility
At the Sintra facility, all capital expenditures have been made and the facility is fully operational. The facility is a 25,000 square foot purpose-built medical cannabis facility that mirrors the technology developed at Flowr’s K-1 and Kelowna Research Station (KRS) located in Kelowna, British Columbia. There are six grow rooms that are now fully operational and producing high-THC strains – BC Black Cherry and BC Strawnana. Holigen expects to receive the Cookies genetics in the first quarter of 2022.
Holigen expects to harvest approximately 300 kilograms of medical cannabis in the first quarter of 2022 and over 2,000 kilograms of premium cannabis per year from the Sintra facility. Holigen is the final stages of cultivating BC Black Cherry and BC Strawnana strains, having completed its first harvest of BC Black Cherry and BC Strawnana at its purpose-built indoor facility in Sintra, Portugal. Initial in process testing for both genetics of medical cannabis are indicating high THC content levels of greater than 25%.
In addition, Holigen is commencing accelerated and long-term stability testing on these strains with a view to having them in market under its own brand in multiple markets in the second half of 2022. In the meantime, Holigen is pursuing business-to-business medical cannabis bulk sales as a way to get product into multiple markets, and to generate immediate revenue.
Tom Flow, co-founder of Flowr and previously of MedReleaf Inc., has relocated to Portugal and has assumed full operational control of the Sintra facility. In a short time, Mr. Flow has implemented best-in class standard operating procedures and has been able to cultivate premium quality high THC medical cannabis.
Genetics Portfolio
The Company has successfully exported its flagship high-THC strains – BC Pink Kush, BC Black Cherry and BC Strawnana – from Canada to Portugal. Holigen has established a robust stock of healthy mother plants and has initiated its first harvest. Preliminary testing results for BC Black Cherry indicate more than 25% THC content and for BC Strawnana early testing at more than 27% and is expected to continue to rise. These tests are in process tests and are indicative of the strains baring high-THC in their finished format.
In addition to the Flowr genetics portfolio, Holigen has received import permits for a wide assortment of genetics from Cookies, including their notable strains such as Gary Payton, Cereal Milk, Gelatti, Pancakes and Pink Runtz. Holigen has initiated the product registration process and will submit for market authorization in Portugal, Germany, UK, and others in the first quarter of this year, and expects to receive approvals in the second half of 2022.
Co-Manufacturing Services
In Portugal, there are several GACP cultivators, predominantly operating out of greenhouse facilities, that require GMP tolling services. After successfully completing validation batches in 2021 and generating approx. €500k in revenue from tolling services last year, the company is now offering these services to additional clients. Holigen expects this to exceed €500,000 per quarter in the second half of 2022. The tolling services are primarily comprised of trimming, drying, curing and packaging of medical cannabis for Holigen’s clients.
Lab Services
The Sintra facility is fitted out with a state-of-the-art laboratory equipment, including GC and HPLC diagnostic machines. With its GMP cannabis testing license, Holigen has initiated third-party lab services, providing medical cannabis testing such as cannabinoid potency testing, Alfatoxins and ochratoxin and microbiological testing. Holigen expects the launch of third-party lab services to result in significant annual revenue.
About The Flowr Corporation
The Flowr Corporation is a Canadian cannabis company with operations in Canada and the European Union. 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 services 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.
