Flower is planning to complete a non-brokered private placement of up to 2.4 million shares at C$6.25 per share for proceeds of $15 million.
The financing is led by the cannabis company’s management team, which is investing an aggregate of $3.6 million, including CEO Vinay Tolia and Chairman Steve Klein through the Core Flow subsidiary.
“Through leading each round of financing for the company, Core Flow has a strong conviction in Flowr’s edge in designing and constructing highly efficient facilities and producing high quality cannabis products,” said Klein. “Moreover, Flowr is building a company, from its management team to cultivators, that I believe is second to none."
Amid a flutter of changes, it was announced that Tom Flow is transitioning from his role as co-CEO and board member to the position of founder and managing partner.
Personnel changes at the board of directors and management level include Thierry Elmaleh joining Flowr as head of capital markets, having spent nearly 15 years in investment banking at BMO Capital Markets and Bank of America Merrill Lynch.
And Don Duet, former technology partner at Goldman Sachs, joins Flowr’s board of directors.
Current lead independent director Rishi Shah is stepping down from the role to be replaced by Karen Basian.
Updates on Holigen investment
The Toronto-based cannabis cultivator is closing a nearly 20% investment in Holigen Holdings Ltd, a European-based cannabis company developing large-scale GMP-compliant grow facilities in Portugal and Australia.
In Portugal, Holigen is building a 21,500 square foot installation for cultivation, processing, GMP manufacturing and R&D operations. The company is also initiating the installation of one of the largest outdoor cultivation areas for cannabis sativa (THC).
In Australia, Holigen is expected to begin construction on a manufacturing facility for medicinal cannabis, with the aim to be in production by the end of 2019.
Flowr shares were trading at C$6.58 in Toronto and at US$4.90 in the US at Monday’s close.
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