- The Flowr Corporation (FLWR) has closed the sale of the Flowr Forest property to a third party for $3.4 million
- The company used a portion of the proceeds from the sale to repay the outstanding balance of its ATB-led credit facility in full and is now bank debt free
- The sale of Flowr Forest marks the completion of first phase of the company’s transformation plan which included staff cuts and the divestiture of non-core assets
- The Flowr Corp is a Toronto-headquartered cannabis company with operations in Canada and Europe
- The Flowr Corporation (FLWR) is up 40 per cent on the day, trading at C$0.035 per share at 11 am ET
The Flowr Corporation (FLWR) has closed the sale of the Flowr Forest property to a third party for $3.4 million.
The company used a portion of the proceeds from the sale to repay the outstanding balance of its ATB-led credit facility in full. The company, now bank debt free, intends to use the remaining proceeds for working capital.
The sale of Flowr Forest marks the completion of the first phase of the company’s transformation plan, which includes management changes, the divestiture of non-core assets and cost cuts to further right-size the organization.
Recent milestones include:
- The company has eliminated 40 per cent of its workforce, largely in senior and middle management, resulting in anticipated annual savings of over $4M
- The company sold its Kelowna Research Station R&D Facility to Hawthorne Canada Limited for $15.9M
- The company sold subsidiary, Holigen Limited for gross proceeds of $3M and 1.9M shares in Akanda Corp.
- The company is bank debt free with the payment in full of the ATB credit facility that once stood at $23.77 M
Darren Karasiuk, Chief Executive Officer of Flowr commented on the company’s transformation.
“The completion of phase one of the transformation plan better positions the company for the current competitive landscape. The company is now focused on maximizing operational efficiencies, strengthening its balance sheet and levering its global commercial relationships to provide high-quality cannabis for both international and domestic markets.”
The Flowr Corporation is a Canadian cannabis company with an operating campus in Kelowna, British Columbia. Flowr strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products.
The Flowr Corporation (FLWR) is up 40 per cent on the day, trading at C$0.035 per share at 11 am ET.
