TORONTO, Dec. 16, 2021 (GLOBE NEWSWIRE) — The Flowr Corporation (“
Flowr
” or the “
Company
”) (TSXV: FLWR, OTC: FLWPF) is pleased to provide an update on its Canadian and European operations.
New Product Launches
Following the successful launch of our latest high-THC strain, BC Strawnana, in October 2021, Flowr is pleased to announce that three new genetics, BC Lemon Ice, BC Spiced Grape and BC Mango Melon OG, have been approved for listing with the Ontario Cannabis Store in Q1 and Q2 of 2022 with additional provincial listings in progress. These additional listings will continue to offer consumers premium cannabis choices based on high-THC, strong sensory profiles and high quality buds.
In addition, we recently released a new genetic, Sour Sis, as part of our Underground Series campaign. Sour Sis is an exotic high-THC strain which tested at 28% THC and 3.2% terpenes. The Underground Series is meant to provide consumers with unique product offerings that are, rare, diverse, and only available on a limited time basis.
We have established a robust pipeline of new cultivars that are under R&D trial at our facilities in Kelowna, ensuring that Flowr will continue to grow its revenue base by bringing rare and in-demand products to consumers.
The Company is pleased to announce the successful launch of BC Dogwalkers pre-rolls after the first shipment sold out in under twenty-one days in British Columbia. BC Dogwalkers provide consumers with Flowr’s flagship strains in a 0.35 gram pre-roll format that prioritizes convenience and accessibility. The addition of BC Dogwalkers also complements our existing 0.5 gram pre-rolls to maximize revenue generation across formats. BC Dogwalkers will also launch in the Ontario Cannabis Store in January 2022, offering Ontario consumers an expanded range of Flowr products.
Sale of Non-Core Asset and Debt Repayment
The Company has successfully closed the previously announced sale of unused industrial land located in Kelowna, BC for gross sale price of $6.3 million in cash, including $5.3 million paid on closing and a further $1.0 million cash receivable within six months upon satisfaction of certain conditions. Pursuant to the credit agreement with a syndicate of senior lenders led by ATB Financial (the “
Credit Facility
”), the Company has made an early principal repayment of $3 million towards the Credit Facility using proceeds from the land sale, reducing the principal amount outstanding to $5.7 million by the end of 2021. In exchange for the $3 million paydown, ATB Financial has agreed to release its security over Holigen Holdings Limited (“
Holigen
”), providing the Company greater flexibility over Holigen’s capitalization.
Holigen Facility Fully Operational
Holigen’s indoor facility in Sintra, Portugal is now fully operational with all grow rooms planted and producing E.U. GMP medical cannabis. Currently two strains, BC Black Cherry and BC Strawnana, are in production with more genetics planned for 2022. The first harvest is scheduled to take place in January 2022.
Resignation of Director
Flowr would like to announce that Jörg Cieslok has resigned from the Board of Directors in order to pursue other opportunities. The Company wishes Mr. Cieslok all the best in his future endeavours.
About The Flowr Corporation
The Flowr Corporation is a Canadian cannabis company with operations in Canada and the European Union. Its Canadian operating campus, located in Kelowna, BC, includes a purpose-built, GMP-designed indoor cultivation facility; an outdoor 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 Holdings Limited, which has a license for cannabis cultivation in Portugal and operates a GMP licensed facility in Portugal. In 2020, Flowr’s BC Pink Kush was recognized as the top indica strain in Canada by KIND magazine.
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:
Darryl Brooker
Chief Executive Officer
CONTACT INFORMATION:
INVESTORS & MEDIA:
John Chou
Chief Financial Officer
[email protected]
Forward-Looking Information:
Certain statements made in this press release may constitute “forward-looking information”, “future oriented financial information” or “financial outlooks” (collectively, “
forward-looking information
”) within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results including, but not limited to: the Company’s expectation that it will build on its achievements as it continues to invest in sales and marketing; the Company’s expectations for sales of product in Quebec; Flowr servicing the global medical cannabis market and operating GMP facilities in Portugal; Flowr’s business, production and products; Flowr’s plans to provide premium quality cannabis to adult use recreational and medical markets; EU-GMP certification opening the medicinal cannabis opportunity for the Company in global markets; the Company being well positioned to distribute EU-GMP compliant product into underserviced markets; Flowr’s ability to realize revenue from the Company’s European operations within the anticipated timeframe or at all; Flowr’s ability to establish sales and distribution channels in Europe to deliver medicinal cannabis to underserviced markets; expectations with respect to the anticipated timing for harvests, propagation, completion of construction and installation of extraction infrastructure at the Company’s Sintra facility; the Company being unable to commence GMP packaging and commercial sales within the anticipated timeframe or at all; Flowr’s ability to service the global medical cannabis market and/or operate GMP-designed manufacturing facilities in Portugal; the sale of medical cannabis in pharmacies in Portugal representing a watershed moment for cannabis in the E.U.; the Company’s ability to complete offering(s) of its securities under the Final Shelf Prospectus; the expected impact of the strategic review decisions on the Company; the actual costs of savings from the Company’s restructuring initiatives, including with respect to its workforce; the Company’s plans to divest its interests in certain of its subsidiaries; the Company’s ability to obtain licensing from Health Canada and other regulatory authorities with respect to its properties and facilities; future legislative and regulatory developments in Canada and elsewhere; the cannabis industry in Canada generally; the ability of Flowr to implement its business strategies; and the ability of Flowr to produce or sell premium quality cannabis. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. To the extent any forward-looking information in this press release constitutes “future oriented financial information” or “financial outlooks”, within the meaning of applicable securities laws, the purpose of such information being provided is to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information as discussed in the “Risk Factors” section of the Company’s 2020 Annual Information Form dated April 28, 2021 (the “
AIF
”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“
SEDAR
”) at www.sedar.com. The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.
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.
