The Flowr Corporation (TSXV: FLWR; OTC: FLWPF) (“Flowr” or the
“Company”) is pleased to announced that the Corporation has
received a loan commitment from a syndicate of lenders led by ATB
Financial (“ATB”) in its capacity as lead arranger and
administrative agent for up to $50,000,000 of committed senior
secured credit facilities (the “ATB Credit Facilities”). Pursuant
to the ATB Credit Facilities, the Corporation will be permitted to
use a recapitalization term facility and a revolving operating
credit facility for general working capital purposes and a
development facility for the development of its Kelowna 1 Facility,
Kelowna 2 Facility and Flowr Forest. The ATB Credit Facilities will
have a maturity day of three (3) years. Under the terms of
the ATB Credit Facilities, the Corporation will be subject to
certain financial, positive and negative covenants. In
addition, the ATB Credit Facilities provide for an accordion of up
to $50,000,000. The applicable margins for the ATB Credit
Facilities is based on certain performance-pricing grids, ranging
from 250 bps to 325 bps for bank acceptances and letters of credit,
125 bps to 200 bps for prime loans, and certain standby fees.
Expanding Distribution into
Alberta
The Company is also pleased to announce it has
entered into a supply agreement with Alberta Gaming, Liquor &
Cannabis (“AGLC”).
Under the terms of the agreement, there is no
limit on the number of strains that Flowr will be supplying to AGLC
and the Company can also list seeds. Flowr values Albertans and
will strive to be a dependable source of premium quality cannabis
in the region.
“As a proud Albertan and an active member in our
community through the years, I am really excited Flowr is expanding
distribution into the province as part of our efforts to provide as
many recreational users in Canada as possible with access to Flowr®
branded products. Consumers differentiate according to quality,
based on terpene profile and overall experience, and we see a
tremendous opportunity for Albertans to experience the difference
that our cultivation expertise delivers,” said Dr. Lyle Oberg,
Flowr’s Chief Policy and Medical Officer. “Flowr shares many
of the same values as Albertans and we are proud to be able to make
our cannabis available to all Albertans from Fort Chip to Sweet
Grass and every place in between.”
Alberta is one of the largest cannabis markets
in Canada, and with this agreement, Flowr’s product will now be
available in six provinces. The Company previously announced
supply agreements and/or arrangements with provincial authorities
in British Columbia, Manitoba, Nova Scotia and Ontario, sales
through a private dispensary in Saskatchewan, and a medical
cannabis supply agreement with Shoppers Drug Mart.
About The Flowr Corporation
Flowr, through its subsidiaries, holds a
cannabis production and sales license granted by Health Canada.
With a head office in Toronto and a production facility in Kelowna,
BC, Flowr builds and operates large-scale, GMP-designed cultivation
facilities utilizing its own growing systems. Flowr’s investment in
research and development along with its sense of craftsmanship and
a spirit of innovation is expected to enable it to provide
premium-quality cannabis that appeals to the adult-use recreational
market and addresses specific patient needs in the medicinal
market.
On behalf of The Flowr Corporation:Vinay
ToliaCEO and Director
Forward-Looking Information
This press release includes forward-looking
information within the meaning of Canadian securities laws
regarding Flowr and its business, which may include, but is not
limited to: statements relating to the ATB Credit Facilities,
including the size, terms and use of proceeds thereof, the ability
to meet demand for cannabis in various provinces, including in
Alberta, Flowr fulfilling all purchase orders and the timing
thereof, Flowr being positioned to meet current and/or future
demand, including in Alberta, the date Flowr’s products are
expected to be made available and listed in Alberta, Flowr meeting
its commitments to the provinces and other partners, Flowr’s
ability to bring premium, quality products to the market, including
in Alberta, Flowr providing customers in Alberta with a premium,
non-irradiated product, the products being manufactured in Alberta
not having to be irradiated, Flowr’s facilities being constructed
to achieve GMP designation, Flowr striving to be a dependable
source of premium quality cannabis in Alberta, Flowr providing as
many consumers as possible with access to Flowr branded products,
Flowr’s understanding and views regarding consumer preferences and
differentiation, opportunities Flowr sees for consumers to
experience the difference Flowr’s cultivation expertise delivers,
Flowr having differentiated cultivation expertise, the Company
seeking to deliver a premium cannabis experience for its customers,
Flowr’s facilities being designed in a way that should enable it to
provide customers with both high quality products and consistent
benefits, Flowr’s cultivation team employing exacting protocols
throughout the growing, harvesting and curing process that seek to
deliver a premium experience for customers, Flowr’s investment in
research and development along with its sense of craftmanship and
spirit of innovation enabling it to provide premium quality
cannabis that appeals to recreational market and addresses specific
patient needs, and other factors. 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 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 these 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 ATB Credit Facilities not becoming
available to Flowr in the amounts stated herein or at all, which
could materially impact Flowr’s liquidity and ability to complete
its projects, Flowr defaulting under the terms of the TAB Credit
Facilities, Flowr not being able to meet demand or fulfill purchase
orders, which could materially impact revenues and its
relationships with purchasers, Flowr’s inability to make its
products available to the Province of Alberta for any reason,
Flowr’s inability to provide customers with the experience they
want, which could impact sales, Flowr being unable to provide
Alberta customers with a premium, non-irradiated product, which
could materially impact sales, Flowr’s cultivation team
failing to achieve the standards or level of products described
herein, including with respect to quality and consistency of
product offerings, Flowr’s cultivation team not employing exacting
protocols throughout the growing, harvesting and curing process,
which could impact the quality of the products and the experience
for customers, Flowr not being able to provide premium-quality
cannabis that appeals to the adult-use recreational market and
addresses specific patient needs in the medicinal market, Flowr’s
inability to excel at cultivating premium cannabis, Flowr’s
inability to construct its facilities, or in the time anticipated,
which could materially adversely impact its growing capacity and
sales, demand for cannabis products decreasing, including with
respect to Flowr’s products, the inability of Flowr to provide what
it perceives to be much-needed, high quality product to the market,
the inability of Flowr to control the growing environment in its
facilities, which could result in loss of products or the need to
irradiate products, thus impacting the supply and demand for and/or
quality of the products, Flowr failing to be a dependable source of
premium quality cannabis, Flowr failing to provide as many
consumers as possible with access to its products, which could
materially impact sales, Flowr’s customers not differentiating
Flowr’s products or cultivation expertise, Flowr requiring
additional financing from time to time in order to continue its
operations and such financing may not be available when needed or
on terms and conditions acceptable to the Company, new laws or
regulations adversely affecting the Company’s business and results
of operations, results of operation activities and development of
projects, project cost overruns or unanticipated costs and
expenses, the inability of Flowr’s products to be high quality, the
inability of Flowr to produce and distribute premium, high quality
products, the inability to complete construction of Flowr’s
cultivation facility or any delay in the construction thereof, the
inability to supply the products described herein or any delay in
such supply, Flowr’s securities, the inability to generate cash
flows, revenues and/or stable margins, the inability to grow
organically, risks associated with the geographic markets in which
Flowr operates and/or distributes its products, risks associated
with fluctuations in exchange rates (including, without limitation,
fluctuations in currencies), risks associated with the use of
Flowr’s products to treat certain conditions, the cannabis industry
and the regulation thereof, the failure to comply with applicable
laws, risks relating to partnership arrangements, possible failure
to realize the anticipated benefits of partnership arrangements,
including to AGLC supply agreement, product launches (including,
without limitation, unsuccessful product launches), the inability
to launch products, the failure to obtain regulatory approvals,
economic factors, market conditions, risks associated with the
acquisition and/or launch of products, the equity and debt markets
generally, risks associated with growth and competition (including,
without limitation, with respect to Flowr’s products), general
economic and stock market conditions, risks and uncertainties
detailed from time to time in Flowr’s filings with the Canadian
Securities Administrators 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, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or intended.
No forward-looking information can be guaranteed. Except as
required by applicable securities laws, forward-looking information
speaks only as of the date on which it is made and Flowr undertakes
no obligation to publicly update or revise any forward-looking
information, whether as a result of new information, future events,
or otherwise.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
CONTACT INFORMATION:
MEDIA: Sean GriffinVice President, Communications & Public
Relations(877) 356-9726 ext. 1526sean.griffin@flowr.ca
INVESTORS:Thierry ElmalehHead of Capital Markets(877) 356-9726
ext. 1528thierry@flowr.ca
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