- The Flowr Corporation (TSXV:FLWR) has announced an equity line and profit sharing agreement with Terrace Global
- Under the partnership, the two companies will work together to develop finished cannabis products for the European medicinal market
- Terrace will fund certain operations and expenses in exchange for common shares in Flowr and a percentage of sales
- Both companies will participate in the cultivation, harvesting and production of medical cannabis at Flowr’s outdoor facility in Portugal
- The Flowr Corporation (FLWR) is currently up 1.85 per cent, with shares trading at C$0.55 and a market cap of $47.21 million
The Flowr Corporation (TSXV:FLWR) has announced an equity line and profit sharing agreement with Terrace Global.
Under the terms of the partnership, both companies will participate in the planting, growing, cultivation, harvesting and production of high-quality medical cannabis at Flowr’s outdoor facility in Portugal.
These products will then be sold to the European medicinal market under Flowr’s Holigen brand.
It’s anticipated that up to 12 hectares of land will be planted over the course of 2020, with the goal of developing a variety of strains. Flowr recently shipped approximately 14,000 clones to Portugal, including its popular flagship strain, BC Pink Kush.
BC Louis XII and BC Tahoe OG were also included in the shipment, and have shown success in previous outdoor grows. All of these strains contain a THC level of at least 20 per cent.
Pursuant to its responsibilities, Terrace will invest at least C$3 million in the operations and capital expenditures relating to the facility.
In return, Flowr will issue common shares and warrants to Terrace Global, as well as 25 per cent share in the proceeds from cannabis product sales.
The price of shares issued to Terrace Global will be dependent on the company’s performance, specifically the price of the shares on the day prior to issuance. However, a minimum price of $0.52 per common share has been agreed.
CEO of The Flowr Corporation, Vinay Tolia is pleased with the partnership and excited to embark on one of the first large scale outdoor cultivation projects of medicinal cannabis in Europe.
“There is an increased level of comfort in this partnership given prior successful ventures and working relationships with senior leadership of both Terrace Global and Flowr,” he said
The Flowr Corporation (FLWR) is currently up 1.85 per cent, with shares trading for C$0.55 at 11:29am EDT.