- Flowr and Terrace Global jointly operated the largest medical cannabis site in the European Union and one of the largest in the world. Please see: http://www.flowrcorp.com/operations/europe/default.aspx.
- Analytical test results show THC of 20% + in cultivars grown in polytunnels and a total yield of 35 kilograms (“kgs”), product the Company expects will be GMP compliant.
- Analytical test results show THC in the range of 17-21% in premium cultivars and a total yield of more than 3,000 kgs of high-THC biomass cultivated.
- R&D produces pheno-typing of six additional cultivars deepening the genetics portfolio.
- The Company announces strategic warehousing agreement with Tilray.
TORONTO, Dec. 17, 2020 (GLOBE NEWSWIRE) — The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) is pleased to provide an operational update from its European operations (the “Partnership”) which is jointly operated with Terrace Global Inc. (TSXV: TRCE) (“Terrace Global”). In addition, Flowr announces a strategic warehousing agreement (the “Warehousing Agreement”) with Tilray Inc. (NASDAQ: TLRY) (“Tilray”) where the companies will take a collaborative approach to furthering their cannabis businesses in the European Union. The Company is also pleased to announce that the Company has agreed to close the final tranche of funding of the Aljustrel Joint Venture in the amount of C$1 million pursuant to the Equity Line and Profit Share Agreement (the “Agreement”) with Terrace Global.
Flowr is pleased to report outdoor medical cannabis results in Aljustrel, where approximately 40,000 plants have yielded approximately 3,000 kgs of dried flower cannabis flower.
“Given the importance of Europe to the future of the cannabis industry and the historic United Nations vote we wanted to provide an update on our Portuguese operations. Since our partnership with Terrace Global began in May, 2020 we have been able to import a diverse set of high-THC genetics in Portugal, plant over 30 acres of outdoor medical cannabis and put in place the infrastructure that is anticipated to allow us to leverage over 180 acres of outdoor medical cannabis cultivation potential in the future,” commented Vinay Tolia, CEO of Flowr. “There is no other project like this in the E.U. and we expect to be able to leverage this low-cost cultivation capacity to produce a diverse set of derivative products as well as dried flower which we believe will be released with GMP certification. We continue to work on closing the acquisition of Terrace Global by year end and are extremely excited by what the future holds for the combined organizations.”
Recently, harvests from the Company’s indoor polytunnels in Aljustrel have yielded approximately 35 kgs of 20% + THC cannabis dried flower which the Company expects to release with E.U. GMP certification in 2021. Additionally, and as previously announced, the Company’s outdoor harvest yielded approximately 3,000 kgs of high THC dried flower cannabis flower.
“The preliminary results of the harvest from our polytunnels may be indicative of a successful business model in the E.U. medical cannabis industry. These lab results have shown the potential to cultivate high THC medical cannabis in polytunnels in a low-cost structure,” commented Dr. Deron Caplan, Director, Research and Development.
Please see http://www.flowrcorp.com/operations/europe/default.aspx for a high-definition video of the site in operation.
During the summer, the Company focused its efforts on expanding its genetics library and currently maintains several high THC strains, including Sour-P, Black Dog, Brains Choice, Gelato, Gorilla Glue #4, and Green Doctor. Each of these strains tested between 18-23% THC.
Strategic Warehousing Agreement with Tilray
Flowr is pleased to announce a strategic warehousing agreement with Tilray whereby the parties have agreed to the storage and warehousing of E.U. GMP certified medical cannabis at the Company’s Sintra facility in Portugal. The parties will undertake to develop a collaborative approach with a view to leverage each party’s E.U. GMP certified facilities in Portugal to store and warehouse medicinal cannabis products for the European market. The commercial terms of the agreement were not disclosed.
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 last tranche of funding, Flowr has issued to Terrace Global 1,923,077 common shares of the Company at a price of $0.52 and an equal amount of common share warrants. Each warrant is exercisable into one full common share in the capital of the Company at an exercise price of $0.76 per common share for a period of 36 months. The final tranche remains subject to the final approval of the TSX Venture Exchange. All securities issued under the final tranche are subject to the customary four-month hold period and may not be traded before April 15, 2020.
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.
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 statements made concerning: the Company’s infrastructure allowing Flowr to leverage over 180 acres of outdoor medical cannabis cultivation potential in the future; the Company’s ability to leverage low-cost cultivation capacity to produce a diverse set of derivative products as well as dried flower; the ability of the Company to achieve GMP certification; the ability to complete the acquisition of Terrace Global and the timing thereof; polytunnels resulting in a successful business model in the E.U. medical cannabis industry; the potential to cultivate high THC medical cannabis in polytunnels in a low-cost structure; the ability of each of Tilray and Flowr to leverage each other’s E.U. GMP certified facilities in Portugal; and the timing and closing of the final tranche of funding by Terrace Global.. 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 proposed completion of the Arrangement with Terrace Global; receipt of approval from the TSX Venture Exchange for the final tranche of the Terrace Global funding; 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; the inability to grow cannabis at a low cost or with the desired THC levels; 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.