Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) on 29th April 2019 made public its corporate update on investment and management. Some of the details emerging from the Markham, Canada-based company showed that Flowr is working towards raising C$15 million through the completion of the non-brokered private placement of common shares of up to 2,400,000. Each share will go for C$6.25.
The proceeds from the sales of the shares will be channeled into multiple purposes including construction of certain operations of Holigen Holdings Limited and general working purposes. While Holigen is a Europe-based cannabis company, it is working to develop large cultivation facilities in Australian and Portugal which will provide the ingredients including plants and seeds for cannabis products. The private placement is expected to come to an end on 10th May 2019. However, this is at the discretion of Flowr Corporation. At the end of the private placement, Flowr Corporation is expected to announce the outcome through a press release.
It is important to note that there are certain terms surrounding this private placement. This includes the receipt of all necessary regulatory approval. Also, the common shares are not registered under the amended U.S Securities Act of 1933. Therefore it cannot be sold in the United States.
Flowr Corporation’s investment in Holigen will facilitate Holigen’s €45 million Portugal investment. In the next four years, this project is expected to generate 200 jobs as well as produce medical cannabis outdoors. Holigen has already commenced the construction of its 21,500 sq. ft. first installation in Sintra. This facility will undertake R&D operations, GMP manufacturing, processing, and cultivation of cannabis.
Holigen has also acquired the license from the Office of Drug Control (ODCO) in Australia to manufacture medicinal cannabis products and cultivate the plant. The Therapeutic Goods Administration also granted Holigen Good Manufacturing Practice (GMP) for secondary packaging, labelling and release for supply late last year. Holigen’s Australia manufacturing facility will be due for full GMP inspection later this year.
Flowr Corporation is adding Thierry Elmaleh as Head of Capital Markets and also making changes to its Board of Directors. Karen Basian, current Board member, is moving up to replace Rishi Shah who recently resigned as Lead Independent Director. Also, Board member and Co-CEO, Tom Flow has transitioned to Founder and Managing Partner to enable him focus better on Flowr’s operations.
Speaking about the board changes, The CEO of Flowr, Vinay Tolia said, “I can speak for the entire Board of Directors in expressing our gratitude to Rishi and Tom for their many valuable contributions to our company’s governance. We believe that Don’s appointment highlights our continued focus on governance and assembling a Board with diverse skillsets. We are also excited to have Tom back in a role that better utilizes his passion and expertise on our global operational initiatives, as we pursue our goal of growing cannabis of the highest possible quality”
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