The Flowr Corporation (TSXV: FLWR; OTC: FLWPF) (“Flowr” or the
“Company”) is pleased to announce that it has closed its previously
announced credit facility from a syndicate of lenders led by ATB
Financial (“ATB”) and including Farm Credit Canada. The $25 million
facilities consist of a $24.5 million recapitalization term
facility and a $500,000 revolving operating credit facility
(together the “ATB Credit Facilities”). Pursuant to conditions of
the ATB Credit Facilities, Flowr will receive a first tranche of
funding of approximately $20.05 million on closing with the
remaining of the recapitalization term facility available subject
to certain conditions.
“We are extremely pleased to strengthen our
financial position through non-dilutive financing at attractive
pricing,” commented Vinay Tolia, Flowr’s Chief Executive
Officer. “The reduced size of the ATB Credit Facilities
compared to the initial commitment reflects our reduced capital
needs as we focused on those investments with the greatest
potential to generate cash flow in the near term. With our
third quarter earnings release on November 26, 2019, we will
provide our shareholders with a comprehensive business update.”
The ATB Credit Facilities have a maturity date
of three (3) years. The applicable margins for the ATB Credit
Facilities are subject to certain performance-pricing grids, as
well as certain standby fees. The Company will be subject to
customary financial and restrictive covenants under the terms of
the ATB Credit Facilities.
Additional details on the ATB Credit Facilities
can be found in the Company’s documents filed on www.SEDAR.com.
THIRD QUARTER 2019 RESULTS RELEASE AND
CONFERENCE CALL
The Company will release its third quarter 2019
results after the close of the financial markets on Tuesday,
November 26, 2019, which will be followed by a conference call and
webcast to review these results at 5:30 p.m. Eastern Time.
Conference call and webcast details are as
follows:
Toll Free: 1-833-227-5845Toll/International:
1-647-689-4072Webcast: flowr.ca/investorsConference call replay
details are as follows:
Toll Free: 1-800-585-8367Toll/International:
1-416-621-4642Passcode: 8052839Webcast: flowr.ca/investors
The replay of the conference call will be
available through midnight on Tuesday, December 3, 2019.
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 that is currently under
construction. 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 will operate GMP-designed manufacturing facilities in 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 flowr.ca or
follow Flowr on Twitter: @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.caForward-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
Company’s expectations regarding the timing and amount of funding
under the ATB Credit Facilities; the Company’s focus on investments
with the greatest potential to generate cash flow in the near term;
the Company providing shareholders with updates; Flowr’s intent to
release its financial results for the third quarter of 2019 on
November 26, 2019; 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 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 Flowr defaulting under the terms of the ATB Credit Facilities,
Flowr not receiving funding under the ATB Credit Facilities in the
expected amounts or within the anticipated timeframe, the
investments Flowr is focused on not having the greatest potential
to generate cash flow in the near term, Flowr being delayed or
unable to release its financial results for the third quarter of
2019 on November 26, 2019, Flowr being unable to service the global
medical cannabis market and operate GMP-designed manufacturing
facilities, Flowr being unable to become the brand of choice for
consumers and patients seeking highest-quality craftmanship and
product consistency, 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, 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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