TORONTO, June 24, Jun 24, 2020 (GLOBE NEWSWIRE via COMTEX) -- The Flowr Corporation (tsx.v:FLWR) /zigman2/quotes/205237089/composite FLWPF -0.44% ("Flowr" or the "Company") is pleased to provide an operational update at the Aljustrel, Portugal outdoor medical cannabis site (the "Partnership") which is jointly operated with Terrace Global Inc. /zigman2/quotes/202503094/delayed CA:TRCE 0.00% ("Terrace Global"). Flowr is also pleased to announce that the Company has closed on the first tranche of funding (the "First Tranche") of the Aljustrel Joint Venture in the amount of C$765,600 pursuant to the Equity Line and Profit Share Agreement (the "Agreement") with Terrace Global.
"We are very pleased by the early results in Aljustrel and look forward to continuing to work closely with Terrace Global to ensure a successful harvest later this year," commented Vinay Tolia, Chief Executive Officer of Flowr. "Our two companies have mobilized very quickly to begin planting in Aljustrel. We are very excited to be moving forward with what we believe to be one of the largest outdoor THC cultivation projects in Europe to date."
Operational Update, Portugal
The two companies have planted on approximately 1 million square feet of land in Aljustrel with a variety of high THC strains, which are expected to thrive in the outdoor growing environment in Portugal. Flowr shipped approximately 14,000 clones from Kelowna to Portugal, consisting primarily of BC Pink Kush, BC Tahoe OG & BC Louis XII. These cultivars have been successfully grown by Flowr in the outdoor environment of Flowr Forest. Terrace Global contributed approximately 30,000 seeds consisting of 8 different strains including, Gorilla Glue #4, Zkittles, Gelato, Wedding Cake, KC33, Brains Choice, Spontanica & Mango. Flowr, through its wholly owned subsidiary Holigen Holdings Limited, received the requisite permits from INFARMED, I.P. for the importation of these genetics in May. The Company is in the process of importing harvesting equipment and a custom-built combine harvester from Terrace Global to the Aljustrel site in order to allow for automated harvesting of high-THC biomass. The wide variety of high THC strains, coupled with efficient machinery, are expected to yield a robust depth of cannabis products suitable for medical markets in Europe.
Closing of First Tranche of 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 First Tranche announced today, Flowr has issued to Terrace Global 1,472,308 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 June 24, 2020. The First Tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the First Tranche are subject to the customary four-month hold period and may not be traded before October 25, 2020. The parties continue to expect Terrace Global to fund at least C$3 million under this Partnership.
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.
For more information, please visit flowrcorp.com or follow Flowr on Twitter: @FlowrCanada and LinkedIn: The Flowr Corporation.
About Terrace Global
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 jurisdictions. Terrace was created by a group of pioneers in the cannabis space who have come together to build a best in class portfolio of assets, across international markets. With decades of cross-continent relationships, the Terrace team is uniquely positioned to unlock value in new jurisdictions like no one else can.
For more information about Terrace Global, please visit terraceglobal.ca.
On behalf of The Flowr Corporation:
CEO and Director
INVESTORS & MEDIA: