Proactive Investors - Run By Investors For Investors

Flowr gets C$50 million loan commitment

The firm said it received a loan commitment from a syndicate of lenders led by ATB Financial (ATB) in its capacity as lead arranger and administrative agent for up to $50-million of committed senior secured credit facilities
Flower
Headquartered in Toronto with a production facility in Kelowna, British Columbia, Flowr builds and operates large-scale, cultivation facilities utilizing its own patented growing systems

The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF) announced news Monday that it has received a loan commitment of up to $50 million from a syndicate of lenders, led by ATB Financial. 

Shares of Flowr jumped 9.5% at C$7.50 in Canadian trading on Monday.

Flowr will be permitted to use both a recapitalization term facility and a revolving operating credit facility for general working capital purposes and development for its Kelowna 1 facility, Kelowna 2 facility and Flowr Forest. The credit facilities will have a maturity date of three years. 

READ: Flowr approved to list on Nasdaq

Under the terms, the corporation will be subject to certain financial, positive and negative covenants. In addition, the ATB Credit Facilities provide for an accordion of up to $50,000,000.

The firm said margins will be based on performance-pricing grids, ranging from  250-325 basis points for bank acceptances and letters of credit, 125-200 basis points for prime loans, and certain standby fees.

Flowr, through its subsidiaries, holds a cannabis production and sales licence granted by Health Canada. Headquartered in Toronto with a production facility in Kelowna, British Columbia, Flowr builds and operates large-scale, cultivation facilities utilizing its own patented growing systems. When fully completed, Flowr’s Kelowna campus is expected to produce over 50,000 kg of premium flower annually.

Flowr is expanding globally in Portugal and Australia, and recently broke ground on a 50,000 square feet R&D facility in partnership with Hawthorne, a subsidiary of Scotts Miracle Gro.

Contact Katie Lewis at [email protected]

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full FLWR profile View Profile

The Flowr Corporation Timeline

Newswire
May 23 2019

Related Articles

medical cannabis concept
February 10 2019
AusCann is a fully integrated early-mover pharmaceutical cannabinoid company.
RYAH vaporizer and cartridges
May 16 2019
RYAH is the first cannabis vaporizer that lets users precisely regulate dose and temperature
cannabis flower
April 26 2019
The company's footprint continues to grow as it focuses on becoming a globally recognized house of brands with a broad portfolio of clients across North America
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use