Highlights:
- Sale of medical cannabis cultivated from Flowr’s outdoor medical cannabis facility in Aljustrel, Portugal.
- The sale represents significant revenue from a single transaction and supports future business model growing outdoors in Portugal.
- The transaction represents the largest known medical cannabis bulk sale transaction in the E.U. to date.
TORONTO, July 28, 2021 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) is pleased to announce that its wholly-owned subsidiary, RPK Biopharma Unipessoal, Ltd., has entered into a medical cannabis supply agreement (the “Supply Agreement”) with Galaxiavertical - Unipessoal Lda. (the “Galaxia”). Pursuant to the terms of the Supply Agreement, Galaxia has agreed to purchase from RPK the high THC medical cannabis biomass at a price of approximately $750,000 (€500,000).
“This Supply Agreement is a major step forward in the development of the Company’s European strategy. Last year, we were able to successfully grow medical cannabis outdoors over more than 30 acres. The results showed that the Aljustrel site is the ideal location to grow outdoor medical cannabis and with a cost structure that will make our product very competitive as an input for medical cannabis derivative products, such as tinctures,” commented Darryl Brooker, Chief Executive Officer of the Company. “We expect Galaxia to take receipt of the product by year-end and look forward to working with them in the future as they develop their extraction business in Portugal.”
The European medical cannabis market has continued to grow as additional countries have updated their regulations to legalize the use of medical cannabis. Brightfield estimates the market will generate over U.S.$570 million in 2021 and reach over U.S.$3.11 billion by 2025.(1) In October 2020, Flowr completed the harvest of the largest known outdoor medical cannabis project in the European Union. Flowr grew more than 40,000 plants and was able to achieve high THC results from its Aljustrel site.
The Supply Agreement is subject to certain conditions precedent, including the requisite approvals from INFARMED, I.P. and receipt by Galaxia of a final certificate of analysis.
To view the highlights of the Aljustrel project, please visit: https://flowrcorp.com/operations/europe/default.aspx.
(1) Source: Brightfield Cannabis Group annual report 2020.
About Flowr
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada and Europe. 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 Holdings Limited, which has a license for cannabis cultivation in Portugal and operates a GMP licensed facility in Portugal. In 2020, Flowr’s BC Pink Kush was recognized as the top indica strain in Canada by KIND magazine.
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:
Darryl Brooker
Chief Executive Officer
CONTACT INFORMATION:
INVESTORS & MEDIA:
John Chou
Chief Financial Officer
John.chou@flowr.ca
Forward-Looking Information:
Certain statements made in this press release may constitute “forward-looking information”, “future oriented financial information” or “financial outlooks” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results including, but not limited to: the satisfaction of all of the conditions under the Supply Agreement; the anticipated size of the European medical cannabis market; the Company’s expectation that it will build on its achievements as it continues to invest in sales and marketing; Flowr servicing the global medical cannabis market and operating GMP facilities in Portugal; Flowr’s business, production and products; Flowr’s plans to provide premium quality cannabis to adult use recreational and medical markets; EU-GMP certification opening the medicinal cannabis opportunity for the Company in global markets; the Company being well positioned to distribute EU-GMP compliant product into underserviced markets; Flowr’s ability to realize revenue from the Company’s European operations within the anticipated timeframe or at all; Flowr’s ability to establish further sales and distribution channels in Europe to deliver medicinal cannabis to underserviced markets; future legislative and regulatory developments in Canada, in Europe and elsewhere; the cannabis industry in Canada and Europe, generally; the ability of Flowr to implement its business strategies; and the ability of Flowr to produce or sell premium quality cannabis. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. To the extent any forward-looking information in this press release constitutes “future oriented financial information” or “financial outlooks”, within the meaning of applicable securities laws, the purpose of such information being provided is to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information as discussed in the “Risk Factors” section of the Company’s 2020 Annual Information Form dated April 28, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.
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