TORONTO – The Flowr Corporation (TSX.V:FLWR) (OTCQB:FLWPF) (the “Company” or “Flowr”) is pleased to announce that it has closed its previously announced quick kind prospectus supplying (the “Offering”) of units of the Corporation (the “Offered Units”). A total of 10,610,00 Presented Units, consisting of one particular frequent share and one particular half of one particular frequent share buy warrant, have been issued at a cost of C$four.10 per Presented Unit, for aggregate gross proceeds of $43,501,00.
Each and every entire warrant will be exercisable to obtain one particular frequent share (a “Warrant Share”) for a period of 24 months following the closing of the Supplying at an exercising cost of $five.00 per Warrant Share. In the occasion that the volume weighted typical trading cost of the frequent shares for ten (10) consecutive trading days exceeds $six.15, the Corporation has the correct to accelerate the expiry date of the Warrants upon not significantly less than fifteen (15) trading days’ notice, or such longer period as the TSXV Venture Exchange (the “TSXV”) may perhaps need. The TSXV has conditionally authorized the listing of the Warrants, topic to common listing circumstances. The Warrants had been anticipated to commence trading on or about August 12, 2019.
The Presented Units had been sold pursuant to an underwriting agreement with a syndicate of underwriters led by GMP Securities L.P., and incorporated BMO Capital Markets, AltaCorp Capital Inc., Clarus Securities Inc., and Sprott Capital Partners L.P.
The Corporation has granted the underwriters an solution (the “Over Allotment Option”) to buy up to an further 1,591,500 Presented Units on the similar terms and circumstances, exercisable at any time, in entire or in aspect, for a period of 30 days following the closing of the Supplying for more than-allotment and industry stabilization purposes. In the occasion the More than-Allotment Alternative is exercised in complete, the aggregate gross proceeds of the Supplying will be $50,026,150.
The net proceeds of the Supplying are anticipated to be made use of to fund, in aspect, Flowr’s acquisition of the roughly 80% equity interest of Holigen Holdings Restricted (“Holigen”) that it does not currently personal, functioning capital expected for the building and improvement of specific of Holigen’s and the Company’s cultivation and production facilities, and for common corporate purposes. In the occasion that the closing of the acquisition of Holigen does not take place, the net proceeds from the Supplying (such as any proceeds from the exercising of the More than-Allotment Alternative) will be made use of to fund the Company’s functioning capital, such as building and improvement of the Company’s facilities and for common corporate purposes.
The securities getting supplied have not been, nor will they be, registered beneath the United States Securities Act of 1933, as amended, and may perhaps not be supplied or sold in the United States or to, or for the account or advantage of, U.S. persons absent registration or an applicable exemption from the registration specifications. This press release shall not constitute an give to sell or the solicitation of an give to acquire nor shall there be any sale of the securities in any State in which such give, solicitation or sale would be unlawful.
About the Flowr Corporation
Flowr, via its subsidiaries, holds cannabis production and sales licenses granted by Wellness Canada. With a head workplace in Toronto and a production facility in Kelowna, BC, Flowr builds and operates huge-scale, GMP-developed cultivation facilities using its personal increasing systems. Flowr expects to give premium-top quality cannabis to the adult-use recreational industry and the medicinal industry.