The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“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.
(TSXV: TRCE) (“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 GlobalTerrace 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:Vinay
ToliaCEO and Director
CONTACT INFORMATION:
INVESTORS & MEDIA:Thierry ElmalehHead of Capital
Markets(877) 356-9726 ext. 1528thierry@flowr.ca
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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