TORONTO, June 24, Jun 24, 2020 (GLOBE NEWSWIRE via COMTEX) --
TORONTO, June 24, 2020 (GLOBE NEWSWIRE) -- The Flowr Corporation (tsx.v:FLWR)
("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.
("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:
Head of Capital Markets
(877) 356-9726 ext. 1528
Forward-Looking Information and Statements
This press release contains "forward-looking information" within the meaning of Canadian Securities laws, which may include but is not limited to: the Company and Terrace Global ensuring a successful harvest in Portugal later this year; the Company's expectations that the strains planted in Portugal will thrive in an outdoor growing environment; the anticipated timeline for importing harvesting equipment and a combine harvester in order to automate harvesting; the Company's expectations that a wide variety of high THC strains, coupled with efficient machinery, will yield a robust depth of cannabis products suitable for medical markets in Europe; Terrace Global funding operations and certain capital expenditures at the Company's Aljustrel facility in exchange for securities of the Company; TSX Venture Exchange approval of the First Tranche; the total amount of funding by Terrace Global under the Partnership; Flowr servicing the global medical cannabis market and operating GMP-designed manufacturing facilities in Portugal and Australia; Flowr supporting improving outcomes through responsible cannabis use and striving to be the brand of choice for consumers and patients seeking highest-quality craftmanship and product consistency; and Flowr's business, production and products. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such information and statements are based on the current expectations of Flowr's management and are based on assumptions and subject to risks and uncertainties. Although Flowr's management believes that the assumptions underlying such information and statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this press release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Flowr, including risks relating to: the Company and Terrace Global being unable to ensure a successful harvest in Portugal later this year; the strains planted in Portugal not thriving in an outdoor growing environment; the importation of harvesting equipment and a combine harvester not occurring on the anticipated timeline, or at all; a wide variety of high THC strains, coupled with efficient machinery, not yielding a robust depth of cannabis products suitable for medical markets in Europe; Terrace Global not funding operations and certain capital expenditures at the Company's Aljustrel facility in exchange for securities of the Company; the Company being unable to obtain TSX Venture Exchange approval of the First Tranche; Terrace Global not funding the anticipated amount under the Partnership; Flowr being unable to service the global medical cannabis market and/or operate GMP-designed manufacturing facilities in Portugal and Australia; Flowr being unable to support improving outcomes through responsible cannabis use and/or striving to be the brand of choice for consumers and patients seeking highest-quality craftmanship and product consistency; the construction and development of the Company's cultivation and production facilities; general economic and stock market conditions; adverse industry events; loss of markets; future legislative and regulatory developments in Canada and elsewhere; the cannabis industry in Canada generally; the ability of Flowr to implement its business strategies; Flowr's inability to produce or sell premium quality cannabis, risks and uncertainties detailed from time to time in Flowr's filings with the Canadian Securities Administrators; the Company's inability to raise capital or have the liquidity to operate or advance its strategic initiatives and many other factors beyond the control of Flowr.
Although Flowr has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information or statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking information or statement can be guaranteed. Except as required by applicable securities laws, forward-looking information and statements speak only as of the date on which they are made and Flowr undertakes no obligation to publicly update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise. When considering such forward-looking information and statements, readers should keep in mind the risk factors and other cautionary statements in Flowr's Annual Information Form dated April 29, 2020 (the "AIF") and filed with the applicable securities regulatory authorities in Canada. The risk factors and other factors noted in the AIF could cause actual events or results to differ materially from those described in any forward-looking information or statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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