The Flowr Corporation announces that it intends to complete a non-brokered private placement of common shares of Flowr for gross proceeds of up to $1,000,000 led by certain directors, officers and insiders. Pursuant to the Offering, the Common Shares will be issued at a price of $0.30 per Common Share. The Company expects to use the proceeds of the Offering for general working capital purposes.
In addition, in connection with the Company’s previously announced acquisition (the “Acquisition”) of Terrace Global Inc. (“Terrace”), the Company proposes to satisfy its obligation to make change of control payments to certain former directors and officers of Terrace by issuing Common Shares, which will result in Flowr issuing an aggregate of 276,569 Common Shares to such former directors and officers of Terrace at a deemed price of $0.44 per Common Share (the “Change of Control Payment”). The Company also proposes to pay a portion of the fees owed to Terrace’s financial advisor in respect of the Arrangement, Hyperion Nesbitt Burns Inc. (“Hyperion”), by issuing an aggregate of 467,681 Common Shares to Hyperion at a deemed price of $0.44 per Common Share (the “Hyperion Payment”).
Each of the Offering, the Change of Control Payment and the Hyperion Payment is subject to approval of the TSX Venture Exchange.
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. In 2020, Flowr’s BC Pink Kush was recognized as the top indica strain in Canada by kind magazine.