The Toronto-based company builds and operates large-scale, GMP-designed facilities that utilize proprietary growing methods to produce high-quality cannabis for recreational and medicinal usage.
The offering is expected to be priced in context of the market, Flowr said in a release, with the terms to be finalized once pricing is determined.
The offering follows Monday’s announcement that the cannabis company will acquire the remaining 80.2% of Holigen Holdings Ltd, a European-based cannabis company developing large-scale GMP-compliant grow facilities in Portugal and Australia. Flowr already holds a 19.8% interest in Holigen.
Proceeds from the offering will be directed towards the Holigen acquisition, with funds being used to finalize the purchase and finance the construction and development of its combined cultivation and production facilities.
Flowr’s flagship Kelowna production facility, currently under development, is expected to produce over 50,000-square kilograms of premium flower annually once fully operational.
The cannabis company also said it had filed a preliminary prospectus with the applicable securities commissions in Canada and the US in connection with the offering. The registration statement has not yet become effective and shares may not be sold, or offers to buy be accepted, prior to registration being accepted.
Flowr’s stock price dropped sharply Tuesday morning in Toronto and on the OTC Markets as investors typically shun share dilution.
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