The company Flowr, which owns the Portuguese company Holigen and RPK Pharmaceuticals, announced in a statement the registration of four new cultivars with a high THC content to beãthe lançadas from the seaçthe 2022 in the Canadian market. were concludedíof the tests in 44 new and exótic varieties of dogáencore with lançactions planned for the first half of 2023. The company's statement gives an account of the increase in retail sales in Canadaá, showing an increase in revenues and an overall improvement in costs. Flowr also entered into an agreement with Hawthorne to sell theherethe KRS located in Kelowna for 16 millionõit's from deyes.
Lisbon, February 25, 2022 – Flowr Corporation (“Flower" Or the "Company”) (TSXV: FLWR, OTC: FLWPF) provides an update on its Canadian operations, progress in maintaining its premium cannabis producer status and making necessary changes to achieve profitability.
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Flowr has entered into an agreement to sell its interest in the Kelowna Research Station R&D facility (the “KRS Facility”) to Hawthorne Canada Limited (“Hawthorne”) for an aggregate purchase price of US$16 million (the “ KRS Sale”), to be settled as follows: 1) an initial cash payment of USD 3 million; 2) the total extinction of the principal outstanding under the existing loan agreement between Flowr and Hawthorne for the construction of the KRS facility, currently worth approximately US$12 million; and 3) the balance of the purchase price paid in cash at closing. The KRS Sale is expected to close in the second quarter of 2022 and is subject to certain conditions, including receipt of all required regulatory and third-party approvals.
“The KRS building and the partnership with Hawthorne have given us the ability to experiment and commercialize exotic and unique cultivars, giving us a competitive advantage in the Canadian market,” commented CEO Darryl Brooker “We will maintain a close relationship with Hawthorne and we will continue to benefit from shared Research and Development and the partnership will continue through a services agreement. In addition, this transaction further improves Flowr's balance sheet with cash receipts of approximately $4 million and the elimination of $12 million of outstanding long-term debt."
Lançment of new products
Flowr is also pleased to announce that four new cultivars, BC Clementine Crush, BC Lemon Ice, BC Spiced Grape and BC Mango Melon OG, have been approved for registration in multiple locations including Quebec, Ontario, Alberta and British Columbia, and will be launched in March, April and May 2022. These reinforce and follow Flowr's effort to offer consumers an exotic and differentiated variety, with a high content of THC and terpenes, strong sensory profiles and premium quality.
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The company has successfully completed trials of 44 new cultivars and will soon begin commercial growth of up to 10 new and exotic varieties selected for their unique profile due to their terpene and THC content. These novelties should be launched in the second half of 2022 and in the first half of 2023.
Retail Sales in Canadaá
Flowr continues to grow its Canadian retail sales across all regions with products available at more than 1.500 retail outlets across the country. This includes registering 11 SKU's in Ontario to launch in the coming months.
The company is also pleased to announce the continued success of BC Dog Walkers, which is currently selling in Ontario and British Columbia and is set to launch in Alberta in March 2022. BC Dog Walkers offers consumers top cultivars from Flowr – BC Pink Kush, BC Black Cherry and BC Strawnana, in a 0,35 gram pre-roll format that prioritizes convenience and affordability. The Canadian pre-roll market has seen a significant increase since October 2018 and Flowr believes that sourcing its flagship cultivars in this format will further enhance its position as a premium cannabis producer.
About Flowr Corporation
Flowr Corporation is a Canadian company operating in the cannabis market with operations in Canada and the European Union. Its Canadian facility, located in Kelowna, BC, includes a purpose-built indoor grow facility, and greenhouse and outdoor grow facilities; and a state-of-the-art R&D facility. From this campus, Flowr produces cannabis products for the recreational as well as the medical market. Internationally, Flowr is present in the global medical cannabis market through its subsidiary, Holigen Holdings Limited, which has a license to grow cannabis 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 improved outcomes through the responsible use of cannabis and, as experts in cannabis cultivation, is committed to being the brand of choice for consumers and patients seeking the highest quality and consistency through a portfolio of differentiated cannabis products.