The Flowr Corporation (TSXV: FLWR; OTC: FLWPF) (“Flowr” or the
“Company”) is pleased to announce receipt of a second site
cultivation license from Health Canada for its Flowr Forest
project. The Company has begun transplanting select cultivars
and is on track for a first harvest in the fourth quarter of
2019. Flowr expects to produce approximately 10,000 kilograms
per annum from Flowr Forest once fully optimized and operational.
Flowr Forest, which is located on the Company’s
Kelowna campus, has 42 greenhouses totaling 189,000 square feet
situated within a total licensed outdoor grow area of more than
530,000 square feet. The outdoor cultivation area planted is
expected to be 150,000 square feet and can be expanded to include
an incremental 160,000 square feet. The Company in total has
over 750,000 square feet dedicated to Flowr Forest’s current and
future operations and has a right of first refusal on an additional
850,000 square feet located immediately to the north and contiguous
with the currently licensed area.
“We are extremely pleased to have a cultivation
license for Flowr Forest in time to deliver production in
2019. Getting a second site license required a tremendous
effort from our whole team as well as working collaboratively with
Health Canada to get to this stage in a timely manner. All
site work was already complete, so we are in the process of
transplanting cultivars and expect an additional 10,000 kilograms
of production on top of what we will produce at our Kelowna 1
indoor facility,” said Vinay Tolia, Flowr’s Chief Executive
Officer. “By having our outdoor and greenhouse areas on the
same campus as our indoor facilities, our cultivation team works
from a single location and this is a key to driving efficiency and
optimization in our Canadian operations.”
Once fully optimized and operational, the 10,000
kilograms per annum doubles the expected capacity of grow areas
currently operating and/or under development at Flowr’s Kelowna
campus. The Company’s Kelowna 1 indoor facility (“K1
Facility”) is expected to produce 10,000 kilograms per annum once
construction is complete and the operation is fully
optimized. Construction of the K1 Facility is on track for
completion by the end of the third quarter of 2019.
Product Line Expansion Plans
Flowr remains committed to producing
differentiated products and its dried flower products are expected
to continue to be sourced exclusively from the purpose-built indoor
facilities in Kelowna, whereas cannabis cultivated within Flowr
Forest is expected to support Flowr’s forthcoming extract
business. Furthermore, with the recently announced changes to
the regulatory framework and proposed timing for additional form
factors to reach consumers in late 2019 or early 2020, the
licensing of Flowr Forest positions the Company for a timely launch
of its expanded adult-use recreational product line.
The Company expects its first new product launch
from Flowr Forest to be a live resin vape offering. The
Company believes its deep expertise in cultivating superior plants
positions it to produce exceptional flower for use in
extraction. Building on Flowr’s existing expertise, the
Company is investing in the people, processes, and infrastructure
to deliver a live resin vape product that will meet the
expectations of cannabis consumers in Canada.
Live resins are generated through specific and
proprietary harvest, processing and extraction systems which
together optimally preserve the full range of cannabinoids and
aromatic characteristics of the source cannabis plant. The
result is a cannabis concentrate with richly aromatic terpene
profiles that are true to plant without the need for additional
diluents, preservatives or flavouring.
The Company, therefore, believes that its live
resin vape offering will represent an ideal product to showcase
Flowr's superior cultivation expertise and that is expected to
deliver consumers a similar experience, including taste and aroma,
associated with Flowr’s dried flower products.
About The Flowr Corporation
Flowr, through its subsidiaries, holds cannabis
production and sales licenses 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.
For more information, visit flowr.ca. Follow
Flowr on Twitter: @FlowrCanada; Facebook: Flowr Canada; Instagram:
@FlowrCanada; and LinkedIn: The Flowr Corporation.
On behalf of The Flowr Corporation:Vinay
ToliaCEO and Director
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
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 are not
limited to: the expected capacity at the Kelowna campus doubling,
statements with respect to the K1 Facility, including its expected
capacity and timing of completion or construction, Flowr’s deep
expertise in cultivating superior plants positioning it to produce
exceptional flower for the use in extraction, Flowr’s investment in
research and development along with its sense of craftsmanship and
a spirit of innovation enabling it to provide premium-quality
cannabis that appeals to the adult-use recreational market and
address specific patient needs in the medicinal market, the Company
being on track for a first harvest from the Flowr Forest in the
fourth quarter of 2019, Flowr producing approximately 10,000
kilograms per annum from the Flowr Forest when fully operational
and optimized, the outdoor cultivation planted being 150,000 square
feet and the ability to expand to an incremental 160,000 square
feet, Flowr executing its expansion plan once the current platform
of greenhouses and outdoor grow are fully operational, live resin
vape offerings representing an ideal product to showcase Flowr’s
superior cultivation expertise and such offerings delivering
consumers a similar experience, including taste and aroma
associated with Flowr’s dried flower products, Flowr producing from
the Flowr Forest in 2019, working from a single location at the
Kelowna Campus driving efficiency and optimization, dried flower
products being sourced exclusively from Flowr’s indoor facilities,
cannabis cultivated within the Flowr Forest supporting Flowr’s
extract business, Flowr having an extract business, the licensing
of Flowr Forest positioning the Company for a timely launch of its
expanded recreational use product line, Flowr developing and
commercializing a vape product that will compete in the premium
segment of the market, Flowr investing in people, processes and
infrastructure to deliver a live resin vape product that will meet
the expectations of consumers, use of live resin vape products
resulting in an end product that delivers consumers a similar
experience, taste and aroma associated with Flowr’s dried flower
products 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 associated with the Company not being able to
double its capacity at the Kelowna campus (including not being able
to achieve forecasted capacity at the K1 Facility or Flowr Forest),
which could result in supply shortages and have a material impact
on Flowr’s financial results, the Company not having a first
harvest from the Flowr Forest in the fourth quarter of 2019, which
would delay commercial sales of products derived from the Flowr
Forest, and thus impact Flowr’s financial results, Flowr not being
able to produce approximately 10,000 kilograms per annum from the
Flowr Forest when fully operational and optimized, which
would impact Flowr’s capacity, financial results and operations,
Flowr not being able to plant and cultivate 150,000 square feet,
which could impact products being derived from the Flowr Forest,
its business and/or its financial results, Flowr not having the
ability to expand to an incremental 160,000 square feet, which
would reduce Flowr’s capacity, Flowr not being able to complete
construction of the K1 Facility or any delay in construction, which
would result in supply shortages and have a material adverse impact
on Flowr’s revenues, financial condition, business and operations,
Flowr not being able to effectively grow cannabis outdoor given its
limited experience in growing in greenhouses and/or outdoors, which
could result in significant crop failures, losses and reduced
profitability, Flowr not be able to execute its expansion plan once
the current platform of greenhouses and outdoor grow are fully
operational, which would impact Flowr’s growth strategy, Flowr not
being able to produce product from the Flowr Forest in 2019, which
would impact its business, results of operations and financial
results, and delay Flowr’s entry into other form factor markets,
the failure to drive efficiencies and optimization by working from
a single location, which could impact Flowr’s financial results and
operations, Flowr not sourcing dried flower products exclusively
from Flowr’s indoor facilities, which could have a material impact
on the quality of Flowr’s products and its reputation, cannabis
cultivated within the Flowr Forest not being able to support
Flowr’s extract business, thus reducing profitability for Flowr,
Flowr not being able to execute on its planned extract business,
which would impact Flowr’s ability to compete in other form factor
markets and reduce its probability and competitive edge, Flowr not
being positioned for a timely launch of its expanded adult-use
recreational product line, thus delaying entry into a new market
and delaying sales from such market, Flowr not being able to
develop and commercialize a vape product that will compete in the
premium segment of the market, Flowr not investing in people,
processes and infrastructure to deliver a live resin vape product
that will meet the expectations of consumers, which could impact
Flowr’s ability to bring such products to the market, Flowr not
being able to deliver live resin vape products resulting in an end
product that delivers consumers a similar experience, taste and
aroma associated with Flowr’s dried flower products, or such live
resin products not resulting in such experiences, Flowr’s live
resin product not having the features described herein, including
the inability of such products to showcase Flowr’s superior
cultivation expertise or in delivering consumers a similar or
desired experience associated with Flowr’s dried flower products,
the live resin product not representing an ideal product, the
failure to commercialize such a product, which could have a
material impact on Flowr’s ability to capture market share in the
other form factors market, which could materially adversely impact
its financial condition, business and operations, Flowr not being
able to get Flowr Forest fully operational or being delayed in
getting it fully operational, Flowr not being able to sustain its
competitive advantage in cultivation and being unable to remain at
the forefront of industry innovation, whether as a result of failed
construction of the facilities or otherwise, Flowr not being able
to meet demand or fulfill purchase orders, which could materially
impact revenues and its relationships with purchasers, 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’s products to appeal to the
adult-use recreational market and address specific patient needs in
the medicinal market, the inability of Flowr to produce and
distribute premium, high quality products, the inability to supply
products 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, 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.
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