Holigen expects to harvest 2 tons of cannabis in Sintra. Flowr with its eyes on the legalization of adult use in Portugal

Holigen Holdings Limited, a subsidiary of the Canadian company Flowr that has GMP (Good Manufacturing Practices) certified facilities in Sintra, announced today in Press release that it will harvest around 300kg of cannabis flowers in the first quarter of 2022 and that this year it should reach a production of around two tons. Tom Flow, co-founder of Flowr and Chief Operating Officer (COO), has moved to Portugal to oversee operations and is confident in the legalization of adult use in Portugal.

Holigen also enters the EU-GMP co-manufacturing services business, providing services to other producers, including laboratory ones, now available to external customers.

“We firmly believe that the Holigen team and assets are a unique entry point into the European Union. The Sintra facility is one of the few units in the European Union (EU) certified with GMP. If a competitor wants to enter the EU today, it will face lengthy regulatory approval deadlines, building, importing genetics and assembling a quality team with the experience necessary to succeed,” commented Darryl Brooker, CEO of Flowr. With Tom Flow's move to Portugal and the partnership with Cookies Creative Consulting and Promotions Inc., Flowr believes that Holigen is poised for great success in the short term. “There are several reasons to be in Portugal – the regulatory landscape is changing, the cost structure is highly competitive and there are still no real competitors in the market premium of cannabis.”

Tom Flow attentive to the legalization of adult cannabis use in Portugal

Tom Flow, co-founder of Flowr and now Director of Operations in Portugal, also commented on his move to Portugal: “I was involved in the planning, construction and operation of several of the main cannabis facilities in the world and the Sintra unit is, without a doubt, one of the best facilities in the world to grow premium, high-THC cannabis.” But in addition to medicinal, Tom Flow is also thinking about the legalization of adult use, which he believes is coming soon: “In Portugal, I see not only a growing market for medical cannabis, but discussions around an adult use regimen are also very encouraging. At Holigen, we have built a facility that will be able to service a medical cannabis regimen, providing patients with consistent, high-quality products, but we are also looking to when there is an adult-use market. Partnering with Cookies also allows us to be ready for this change.”

Fully operational Sintra unit

According to Flowr, at the Sintra facility, all capital expenditures have been made and the unit is fully operational. Holigen's medical cannabis facility spans nearly 7.600 square meters with six grow rooms, which are now fully operational and producing high THC strains – BC Black Cherry and BC Strawnana. Holigen expects to receive Cookies genetics in the first quarter of 2022. Initial trials in progress for both medical cannabis genetics are indicating high levels of THC content, in excess of 25% and 27%, respectively.

In addition, Holigen has started long-term and stability tests on these varieties with the aim of having them on the market under their own brand in the second half of 2022. In the meantime, the company is looking for business business-to-business or bulk sales of medical cannabis as a way to bring the product to multiple markets and generate immediate revenue.

Holigen's Genetics Portfolio

The company exported its main high-THC strains from Canada to Portugal – BC Pink Kush, BC Black Cherry and BC Strawnana, having established a robust stock of healthy mother plants to start their first harvest. In addition to the Flowr genetics portfolio, Holigen has been granted import licenses for a wide range of Cookies genetics, including its well-known strains Gary Payton, Cereal Milk, Gelatti, Pancakes and Pink Runtz.

The product registration process and the ACM (market authorization) application in Portugal, Germany and the United Kingdom are the steps that follow, hoping to obtain approval in the second half of 2022.

co-manufacturing services

In Portugal, there are several GACP growers, predominantly operating in greenhouses, which require GMP services. After successfully completing validation batches in 2021 and generating approximately €500 in revenue from “toll” services last year, the company is now offering these services to additional customers. Toll services primarily include the cutting, drying, curing and packaging of medical cannabis for Holigen's customers.

laboratory services

The Sintra unit has state-of-the-art laboratory equipment, including GC and HPLC diagnostic machines. With the GMP cannabis testing license, Holigen initiated laboratory services for third parties, providing medical cannabis testing such as cannabinoid, alpha-toxin and ochratoxin potency testing and microbiological testing. Holigen expects the launch of third-party lab services to also result in significant annual revenue.