- Cannabis cultivator Flowr (FLWR) has secured C$500,000 as part of its funding agreement with fellow TSX-Venture listed Terrace Global (TRCE).
- Announced earlier in the year, this is the second tranche of the agreement and follows Terrace Global’s inaugural payment of $756,600
- In exchange for the funding, Flowr will issue Terrace Global 961,500 shares at 52 cents each
- Through agreement, Terrace Global is funding operations and certain capital expenditures at Flowr’s outdoor cultivation facility in Portugal
- Flowr (FLWR) remains steady and is trading at 46 cents per share
Cannabis cultivator Flowr (FLWR) has secured C$500,000 as part of its funding agreement with fellow TSX-Venture listed Terrace Global (TRCE).
Announced earlier in the year, this is the second tranche of the agreement and follows an inaugural payment of $756,600. Through the equity line and profit share agreement, Terrace Global is funding operations and certain capital expenditures at Flowr’s outdoor cultivation facility in Aljustrel, Portugal.
In exchange for the funding, Flowr will issue shares equivalent to the cash payments. As part of the second tranche Flowr issued Terrace Global just over 961,500 shares at 52 cents each. This adds to the 1.47 million Flowr shares Terrace Global acquired during the first tranche of the agreement.
Alongside the latest share issuance, Terrace Global also acquired an equal amount of warrants, which are exercisable at 76 cents over the next 36 months.
The second tranche of the offer is still subject to TSXV-approval and, if approved, all shares issued will be subject to a four month hold period.
CEO of Flowr, Vinay Tolia is pleased to secure the project’s latest tranche funding commented on the company’s progress in Aljustrel.
“We are very pleased by the progress in Aljustrel and continue to work closely with Terrace Global towards a successful harvest later this year.
“Thus far the crops in Aljustrel look very promising and we continue to be on track to harvest the fields in the fourth quarter of 2020. It’s exciting to be leading what we believe to be one of the largest outdoor THC cultivation projects in Europe to date,” he said.
Flowr expects to receive at least another $3 million in funding from Terrace Global, through the standing agreement.
Flowr (FLWR) remains steady and is trading at 46 cents per share at 12:29pm EDT.