Flowr Corp. Takes On $50 Million Loan

The Flowr Corporation (TSXV: FLWR)(OTC: FLWPF)  has received a loan commitment from a syndicate of lenders led by ATB Financial in its capacity as lead arranger and administrative agent for up to $50,000,000 of committed senior secured credit facilities.

Expanding Distribution into Alberta

According to the company statement, there is no limit on the number of strains that Flowr will be supplying to Alberta Gaming, Liquor & Cannabis (AGLC) and the company can also list seeds.

“As a proud Albertan and an active member in our community through the years, I am really excited Flowr is expanding distribution into the province as part of our efforts to provide as many recreational users in Canada as possible with access to Flowr® branded products. Consumers differentiate according to quality, based on terpene profile and overall experience, and we see a tremendous opportunity for Albertans to experience the difference that our cultivation expertise delivers,” said Dr. Lyle Oberg, Flowr’s Chief Policy and Medical Officer.  “Flowr shares many of the same values as Albertans and we are proud to be able to make our cannabis available to all Albertans from Fort Chip to Sweet Grass and every place in between.”

Flowr said that Alberta is one of the largest cannabis markets in Canada, and with this agreement, its product will be available in six provinces.  The company previously announced supply agreements and/or arrangements with provincial authorities in British Columbia, Manitoba, Nova Scotia and Ontario, sales through a private dispensary in Saskatchewan, and a medical cannabis supply agreement with Shoppers Drug Mart.

Terms

Pursuant to the ATB Credit Facilities, the Corporation will be permitted to use a recapitalization term facility and a revolving operating credit facility for general working capital purposes and a development facility for the development of its Kelowna 1 Facility, Kelowna 2 Facility and Flowr Forest. The ATB Credit Facilities will have a maturity day of three (3) years.  Under the terms of the ATB Credit Facilities, the Corporation will be subject to certain financial, positive and negative covenants.  In addition, the ATB Credit Facilities provide for an accordion of up to $50,000,000.  The applicable margins for the ATB Credit Facilities is based on certain performance-pricing grids, ranging from 250 bps to 325 bps for bank acceptances and letters of credit, 125 bps to 200 bps for prime loans, and certain standby fees.

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