The Flowr Corporation (TSX.V: FLWR)(OTC: FLWPF) announced today that it has commenced an underwritten public offering of common shares for approximately C$125,000,000. As part of the offering, the company is offering an overallotment to purchase an additional 15% of the number of common shares at the offering price for 30 days following closing.
Flowr said that it intends to use the net proceeds to fund part of 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 Holigen’s and the company’s cultivation and production facilities.
The company said that the offering is expected to be priced in the context of the market, with the final terms to be determined at the time of pricing. The common shares are expected to be listed on the TSX Venture Exchange and the NASDAQ Capital Market.
Flowr is an emerging Canadian cannabis leader founded by MedReleaf co-founder Tom Flow and a team of industry pioneers, successful start-up executives, and top industry scientists. Flowr’s purpose-built cultivation facilities are designed to generate high crop yields and produce premium and ultra-premium cannabis products.
Flowr holds a cannabis production and sales license granted by Health Canada. It has a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr expects to provide premium-quality cannabis to the adult-use recreational market and the medicinal market.
In March 2018, Flowr and the Hawthorne Gardening Company, a subsidiary of The Scotts Miracle-Gro Company (NYSE: SMG) announced an exclusive strategic R&D alliance. After evaluating numerous Canadian LPs, Hawthorne chose to partner with Flowr based on the experience and expertise of the Company’s cultivation and R&D teams and the Company’s advanced growing capabilities. This makes Flowr one of only three Canadian cannabis companies with a business partnership with a publicly traded U.S. company along with Canopy (TSX: WEED) and Hexo (formerly Hydropothecary; TSX: HEXO).