The Flowr Corp. Archives - Green Market Report

Debra BorchardtApril 21, 2020
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The Flowr Corporation (OTC: FLWPF) raised C$20 million in a non-brokered private placement with the option to upsize the amount to C$25 million. The company said it expects to use the proceeds for general working capital purposes.

Chairman & Chief Strategist Steve Klein and Chief Executive Officer Vinay Tolia are leading the offering with commitments in excess of $10 million.  Management and insiders will continue to own approximately 58% of the shares of the company post financing on a fully diluted basis (including equity incentives).

“Despite the challenging capital markets environment, we are extremely fortunate to announce this financing and to have continued support from management and insiders who have been instrumental in Flowr’s founding, strategic direction and financing since inception,” said Vinay Tolia, Flowr’s CEO. “This capital is expected to enable Flowr to become cash flow positive in H2 2020 as we build on our focus of delivering premium dry flower to the Canadian marketplace driven by our flagship product BC Pink Kush and other high THC strains we will be launching imminently as all of our 20 grow rooms in our Kelowna 1 facility will soon be in harvest cycles.  We expect to continue to achieve premium price points in the market with our optimized library of high THC strains.  Future revenue growth will be further enhanced with contributions from Holigen given the recent receipt of our EU GMP license in Portugal.”

Flowr also noted that it will release its fourth-quarter earnings after the close on Wednesday, April 29th, 2020 and will host a conference call to review results on Wednesday, April 29th, 2020 at 5:30pm ET.

In addition, certain directors, officers, employees and executives of Flowr, including Chairman & Chief Strategist Steve Klein, Chief Executive Officer Vinay Tolia, Founder and Managing Partner Thomas Flow, Managing Director, Europe Pauric Duffy and Managing Director, Australia & Asia Pacific Peter Comerford who currently collectively control approximately 58% of the Company have agreed to voluntary lock-up agreements in connection with the closing of the Offering whereby all shares held by these shareholders will be subject to restrictions on sale until released under the terms of the Lock-Up Agreements on the 12-month anniversary of the closing date of the Offering.


Debra BorchardtJuly 22, 2019
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The Flowr Corp.  (TSXV: FLWR.V) was originally thought to be listing shares last week on the NASDAQ Marketplace, but that was shelved. Instead, the company announced on Monday that it agreed to sell 10,610,000 units of the company at a price of C$4.10 per unit for approximately C$43,501,000 in proceeds.

The underwriters were led by GMP Securities L.P. The Flowr Corp. also agreed to an over-allotment option to purchase and additional 1,591,500 shares, which would bring in an additional C$6,525,150 in gross proceeds. If that happens, the gross proceeds will be C$50,026,150. The deal is expected to close on August 8, 2019.

The company said it intends to use the net proceeds to fund, in part, its acquisition of the approximately 80% equity interest of Holigen Holdings Limited that it does not already own, working capital required for the construction and development of certain of Holigen’s and the company’s cultivation and production facilities, and for general corporate purposes.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. The stock is currently listed on the Toronto Exchange and was lately trading at C$4.82.

Terms

Each unit will be comprised of one common share of  The Flowr Corp. and one-half of one common share purchase warrant. Each warrant will be exercisable to acquire one common share for a period of 24 months following the closing of the offering at an exercise price of $5.00 per warrant share. In the event that the volume-weighted average trading price of the common shares for ten (10) consecutive trading days exceeds $6.15, the company shall have the right to accelerate the expiry date of the warrants upon not less than fifteen (15) trading days’ notice.

 

 


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