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.
"We are excited to complete the acquisition of Holigen and thereby add operations in Portugal and Australia to our existing Canadian platform. The combination of our extensive cannabis cultivation know-how and Holigen's extensive pharmaceutical experience has the potential to create tremendous value. With an expected annual capacity of 500,000 kilograms, the Aljustrel cultivation asset in Portugal should allow us to be a significant producer in the global medical cannabis and active pharmaceutical ingredient (API) markets, initially in Europe and Australia-Asia," said Vinay Tolia, Flowr's CEO.
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.
"We continue to see the cannabis market bifurcating into premium, superior quality adult-use products, where legal, and a global medical opportunity that will require massive production scale and deep GMP expertise. With the completion of this acquisition, the subsequent ramp-up of production at Aljustrel, and the continued buildout of our campus in Kelowna, Flowr is strategically positioned to service the global cannabis market from an efficient footprint."
The firm noted a number of terms for the acquisition, which included cash consideration of C$6.3 million, issuance of 32.6 million shares, with 10% of the consideration shares converting into common shares after closing and 40% of the consideration share converting into common shares six month from the closing.
The firm noted 40% of the consideration shares will automatically convert into common shares. The remaining 50% of the consideration shares will convert into common shares when and if Holigen achieves certain milestones related to the lodging of product applications and achieving certain planting targets in Australia and Portugal.
Shares of Flowr were up 5% at C$2.95 in Toronto.
Contact Katie Lewis at [email protected]