The Flowr Corporation Announces Receipt of EU GMP Certification at Portuguese Facility
The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) ("Flowr" or the "Company") announced that its wholly-owned subsidiary in Europe ("Holigen") has received its Good Manufacturing Practice (GMP) certification in accordance with European Union standards, for its manufacturing facility in Sintra, Portugal. The GMP certification was issued by Infarmed, the Portuguese National Authority of Medicines and Health Products. In accordance with the certification process, the Company is the process of responding to Infarmed's final queries that will demonstrate the Company's ability to continue to comply with GMP standards. This GMP certification allows the facility to manufacture and export GMP-certified finished medical cannabis products, specifically dried flower, from Portugal to international markets with legal medical cannabis regulations.
"We are very pleased to receive our GMP certification for our Sintra facility in Portugal," says Pauric Duffy, Flowr's Managing Director of Europe. "This is a critical license and step forward which will enable us to release final product into the European market. GMP is the worldwide standard by which pharmaceutical manufacturers judge their supply partners."
"Our international strategy is a key component in driving sales growth and long-term value creation for our shareholders," added Vinay Tolia, Flowr's CEO. "This certification is a testament to our focus on quality and a huge accomplishment for the team in Europe as well as the global organization."
Located just outside of Lisbon, Holigen's Sintra facility is a purpose built facility with 6 grow rooms, a research and development lab and an expected extraction processing facility. Sintra is capable of producing approximately 1,800 kg of premium dried flower when fully optimized. Holigen's European operations also include its Aljustrel site in Portugal which has more than 5,000,000 square feet of outdoor grow space, capable of producing in excess of 500,000 kilograms of cannabis when fully operational. The Company will require additional financing to complete the Aljustrel site.
Conversion of Preferred Shares
The Company also announced that, pursuant to the terms of a share conversion agreement entered into by DFT Trading Limited, Pleiades Trading Ltd. (together, the "Vendors") and the Company in connection with the acquisition of Holigen (the "Conversion Agreement"), the Portugal Planting Milestone (Sintra) (as such term is defined in the Conversion Agreement) has been deemed achieved. As a result, on or about April 1, 2020, 7.5% of the 32,632,545 series 1 voting convertible redeemable preferred shares in the capital of the Company (collectively, the "Consideration Shares") issued by the Company to the Vendors upon the closing of the acquisition of Holigen will convert to 2,447,441 common shares in the capital of the Company (the "Conversion"). The Company expects Pauric Duffy and Peter Comerford to issue early warning reports, respectively, and a press release in connection with the Conversion on April 1, 2020, in accordance with applicable securities laws.
About The Flowr Corporation
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. Its Canadian operating campus, located in Kelowna, BC, includes a purpose-built, GMP-designed indoor cultivation facility; an outdoor and greenhouse cultivation site; and a state-of-the-art R&D facility that is currently under construction. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a license for cannabis cultivation in Portugal and will operate GMP-designed manufacturing facilities in Portugal and Australia.
Flowr aims to support improving outcomes through responsible cannabis use and, as an established expert in cannabis cultivation, strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products.
For more information, please visit flowrcorp.com or follow Flowr on Twitter: @FlowrCanada and LinkedIn: The Flowr Corporation.
On behalf of The Flowr Corporation:
CEO and Director
INVESTORS & MEDIA:
Head of Capital Markets
(877) 356-9726 ext. 1528
Forward-Looking Information and Statements
This press release contains "forward-looking information" within the meaning of Canadian Securities laws, which may include but is not limited to: the Company's ability to continue to maintain GMP certification in Portugal; the GMP certification being a step forward which will enable the Company to release final product into the European market; the Company's international strategy being a key component in driving sales growth and long-term value creation for our shareholders; the Sintra facility including an extraction capability; the scale and output of cannabis product coming out of the Sintra and Aljustrel sites; Flowr servicing the global medical cannabis market and operating GMP-designed manufacturing facilities in Portugal and Australia; Flowr supporting improving outcomes through responsible cannabis use and striving to be the brand of choice for consumers and patients seeking highest-quality craftmanship and product consistency; and Flowr's business, production and products. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such information and statements are based on the current expectations of Flowr's management and are based on assumptions and subject to risks and uncertainties. Although Flowr's management believes that the assumptions underlying such information and statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this press release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Flowr, including risks relating to: the inability of the Company to maintain GMP certification in Portugal; the inability of the Company to use GMP certification as a step forward to release final product into the European market; the inability of the Company to be able to release product into the European market or the market not demanding the Company's products; the Company's international strategy not being the key to driving sales and long-term value creation for shareholders; the fact that the Company's international business has not been profitable to date and may not be profitable in the future despite the matters disclosed herein; the Sintra facility not including an extraction capability which would significantly limit the products and markets available to the Company; the Sintra and Aljustrel sites not producing the expected output of product described herein; the Company being unable to grow; the Company being unable to execute its business plan; the conversion of Consideration Shares into common shares in the capital of the Company; the Company's expectations regarding early warning reports and a press release being issued as a result of the Conversion; Flowr being unable to service the global medical cannabis market and/or operate GMP-designed manufacturing facilities in Portugal and Australia; Flowr being unable to support improving outcomes through responsible cannabis use and/or striving to be the brand of choice for consumers and patients seeking highest-quality craftmanship and product consistency; the construction and development of the Company's cultivation and production facilities; general economic and stock market conditions; adverse industry events; loss of markets; future legislative and regulatory developments in Canada and elsewhere; the cannabis industry in Canada generally; the ability of Flowr to implement its business strategies; Flowr's inability to produce or sell premium quality cannabis, risks and uncertainties detailed from time to time in Flowr's filings with the Canadian Securities Administrators; the Company's inability to raise capital or have the liquidity to operate or advance its strategic initiatives and many other factors beyond the control of Flowr.
Although Flowr has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information or statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking information or statement can be guaranteed. Except as required by applicable securities laws, forward-looking information and statements speak only as of the date on which they are made and Flowr undertakes no obligation to publicly update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise. When considering such forward-looking information and statements, readers should keep in mind the risk factors and other cautionary statements in Flowr's Annual Information Form dated April 3, 2019 (the "AIF") and filed with the applicable securities regulatory authorities in Canada. The risk factors and other factors noted in the AIF could cause actual events or results to differ materially from those described in any forward-looking information or statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.