- The Flowr Corporation (FLWR) has closed the fourth tranche of funding under its ongoing agreement with Terrace Global (TRCE)
- The fourth tranche resulted in proceeds of C$703,000 from Terrace, in exchange for common shares and warrants in Flowr
- Proceeds from the tranche will be used to fund the company’s outdoor medical cannabis site in Aljustrel, Portugal
- Flowr continues to expect that Terrace Global will fund at least $3 million under their agreement
- The Flowr Corporation (FLWR) is down 1.12 per cent and is currently trading at 44 cents per share
The Flowr Corporation (FLWR) has closed the fourth tranche of funding under its ongoing agreement with Terrace Global (TRCE).
In May of this year, the company announced an equity line and profit share agreement with fellow TSXV-listed company, Terrace Global. Throughout the year, Flowr has completed a number of funding tranches through the agreement, with this latest tranche resulting in proceeds of C$703,000.
In exchange for the funds, Flowr has issued Terrace Global with 1,351,923 common shares in the company, at $0.52 each. The company also issued an equal number of common share warrants, each of which is exercisable into one common share for $0.76 each.
The warrants can be exercised within 36 months of September 8, 2020. All securities issued under the fourth tranche are subject to the customary four-month hold period, and can not be traded until January 9, 2021.
Proceeds from this latest tranche will be used to fund Flowr’s outdoor medical cannabis site, located in Aljustrel, Portugal. The site is jointly operated with Terrace Global, which agreed to fund its operations and certain capital expenditures.
Flowr continues to expect that Terrace Global will fund at least $3 million, under their agreement.
The Flowr Corporation’s CEO, Vinay Tolia, commented on the current status of its cannabis project in Portugal.
“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.
The Flowr Corporation (FLWR) is down 1.12 per cent and is currently trading at 44 cents per share at 1:04pm EDT.