The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the
“Company”) announces that it has postponed the filing of its first
quarter 2020 interim financial statements and related management
discussion and analysis for the period ended March 31, 2020
(collectively, the “Interim Filings”) which were required to be
filed by June 1st, 2020 under National Instrument 51-102 Continuous
Disclosure Obligations (“NI 51-102”). The Company expects to report
and file first quarter 2020 earnings on or before June 15th, 2020.
In addition, the Company announces that, in accordance with
applicable corporate and securities laws, and stock exchange rules,
it has decided to delay holding an annual general meeting of
shareholders until a later date in the second half of 2020.
On March 23rd, 2020, the Canadian Securities
Administrators published substantively harmonized temporary
exemptions from certain regulatory filing requirements that provide
issuers with a 45-day filing extension for filings required on or
before June 1, 2020 to allow issuers the time needed to focus on
the many other business and financial reporting implications of
COVID-19. The Company will rely on these exemptions with respect to
the Interim Filings as set out in Part 4 and Part 5 of NI 51-102.
On May 1st, 2020, the Canadian Securities
Administrators announced temporary blanket relief for public
companies from certain filing and delivery requirements, which are
generally tied to the sending of materials for annual general
meetings. The Canadian Securities Administrators implemented the
relief through local blanket orders that are substantially
harmonized across the country, including the exemptive relief
contained in Ontario Instrument 51-504 Temporary Exemptions from
Certain Requirements to File or Send Securityholder Materials of
the Ontario Securities Commission. The Company will rely on this
relief to postpone the public filing of its executive compensation
disclosure until such time as it is filed and delivered to
shareholders as part of the Company’s management information
circular relating to its 2020 annual meeting of shareholders.
All of the Company’s management, directors and
other insiders will remain subject to a blackout period under its
Timely Disclosure, Confidentiality and Insider Trading
Policy, which reflects the principles set out in section 9 of
National Policy 11-207: Failure-to-File Cease Trade Orders and
Revocations in Multiple Jurisdictions.
Since the Company reported 2019 fiscal year end
results on April 29th, 2020, the Company announced that it has
entered into an Equity Line and Profit Sharing Agreement (the
“Partnership”) with Terrace Global (TSX-V: TRCE) (“Terrace Global”)
to fund the development and operations of Holigen. For
further details on the Partnership with Terrace Global please see
the Company’s press release dated May 14th, 2020 and related filing
on SEDAR.
On May 27th, 2020, the Company became aware that
for the fiscal quarter ending March 31, 2020 it was in breach of a
current ratio financial covenant and positive covenant requiring
the Company to have a certain percentage of total assets held by
loan parties under the Credit Agreement dated November 18, 2019, as
amended to the date hereof, with a syndicate of lenders, including
ATB Financial (the “Credit Agreement”). The Company, as at
today’s date, is in compliance with the current ratio testing under
the Credit Agreement, but requires a formal waiver from its lenders
with respect to the aforementioned breach of covenants. The
Company is currently in discussions with its lenders to receive
such waivers, and believes it will be able to receive a waiver from
such breaches.
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. 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 operates GMP licensed
facilities in both 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:Vinay
ToliaCEO and Director
CONTACT INFORMATION:
INVESTORS & MEDIA:Thierry ElmalehHead of Capital
Markets(877) 356-9726 ext. 1528thierry@flowr.ca
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 postponement of the filing
of the Interim Filings; the expected timeline for the Company to
report and file first quarter 2020 earnings; the expected timeline
for the Company’s annual general meeting of shareholder in 2020;
the Company relying on exemptions with respect the Interim Filings;
the Company relying on relief to postpone the public filing of its
executive compensation disclosure; the Company’s management,
directors and other insiders remaining subject to a blackout period
under its Timely Disclosure, Confidentiality and Insider Trading
Policy; the Partnership funding the development and operations of
Holigen; the Company’s discussions with its lenders regarding
waivers and its belief that it will be able to receive such
waivers; 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: Flowr
being unable to file the Interim Filings on the anticipated
timeline, or at all; Flowr being unable to hold an annual general
meeting of shareholders on the anticipated timeline, or at all; the
Company being unable to satisfy the requirement for the applicable
exemptions and relief it is relying on with respect to the Interim
Filings and filing of its executive compensation disclosure, or
such exemptions and relief becoming otherwise unavailable to the
Company; the inability of the Company to have its management,
directors and other insiders adhere to its Timely Disclosure,
Confidentiality and Insider Trading Policy; the Partnership being
unable to fund the development and operations of Holigen; the
Company being unable to obtain waivers from its lenders; 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 29, 2020 (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.
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