Highlights:
- Flowr’s wholly-owned subsidiary, Holigen, fully operationalizes E.U. GMP certified indoor facility. Six grow rooms have been put into operation with Flowr’s proprietary genetics.
- Tom Flow, co-founder of Flowr and Chief Operating Officer, has relocated to oversee operations in Portugal.
- First harvest of BC Black Cherry strain completed and in process testing at more than 25% THC content. Second harvest of BC Strawnana commenced January 31, 2022 with in process testing at more than 27% THC content.
- Holigen expects to harvest approximately 300 kilograms of medical cannabis in the first quarter of 2022 and over 2,000 kilograms of premium cannabis per year from the Sintra facility.
- Holigen launches EU-GMP co-manufacturing services business, providing third party cultivators with GMP tolling services which has seen huge demand from domestic cultivators. Company expects significant revenue from co-manufacturing services in 2022.
- Holigen launches lab services business, now available for third party clients as a service offering to the domestic market, and provides an additional source of revenue.
TORONTO, Feb. 11, 2022 (GLOBE NEWSWIRE) -- The Flowr Corporation (“Flowr” or the “Company”) (TSXV: FLWR, OTC: FWPF) is pleased to provide an operational update at its facilities located in Portugal owned and operated by Flowr’s wholly-owned subsidiary, Holigen Holdings Limited (“Holigen”).
“We still firmly believe that Holigen’s team and assets are a unique entry point into the European Union. The Sintra facility is one of very few E.U. GMP certified facilities on the continent. If a competitor wanted to enter the E.U. today they would face long lead times on regulatory approvals, construction, importation of genetics and assembly of a quality team with the requisite experience to be successful. With the relocation of Tom Flow to Portugal and our partnership with Cookies Creative Consulting and Promotions Inc. (“Cookies”), we believe that Holigen is poised for great success in the near-term,” commented Darryl Brooker, Chief Executive Officer of Flowr. “There are several reasons to be in Portugal – the regulatory landscape is changing, the cost structure is highly competitive and there are no real competitors in the premium cannabis market yet.”
“I have been involved in the planning, construction and operation of several of the world’s premier cannabis facilities and the Sintra facility is undoubtedly one of the best facilities in the world to grow premium, high THC cannabis,” commented Tom Flow, co-founder of Flowr and Chief Operating Officer. “In Portugal, I see not only a growing medical cannabis market but the discussions around an adult use regime are also very encouraging. At Holigen, we have built a facility that will be able to cater to both a medical cannabis regime by providing patients with consistent, high-quality product but we are also looking ahead to when there may be an adult use market and having a partnership with Cookies also lets us be ready for that change.”
Sintra Facility
At the Sintra facility, all capital expenditures have been made and the facility is fully operational. The facility is a 25,000 square foot purpose-built medical cannabis facility that mirrors the technology developed at Flowr’s K-1 and Kelowna Research Station (KRS) located in Kelowna, British Columbia. There are six grow rooms that are now fully operational and producing high-THC strains – BC Black Cherry and BC Strawnana. Holigen expects to receive the Cookies genetics in the first quarter of 2022.
Holigen expects to harvest approximately 300 kilograms of medical cannabis in the first quarter of 2022 and over 2,000 kilograms of premium cannabis per year from the Sintra facility. Holigen is the final stages of cultivating BC Black Cherry and BC Strawnana strains, having completed its first harvest of BC Black Cherry and BC Strawnana at its purpose-built indoor facility in Sintra, Portugal. Initial in process testing for both genetics of medical cannabis are indicating high THC content levels of greater than 25%.
In addition, Holigen is commencing accelerated and long-term stability testing on these strains with a view to having them in market under its own brand in multiple markets in the second half of 2022. In the meantime, Holigen is pursuing business-to-business medical cannabis bulk sales as a way to get product into multiple markets, and to generate immediate revenue.
Tom Flow, co-founder of Flowr and previously of MedReleaf Inc., has relocated to Portugal and has assumed full operational control of the Sintra facility. In a short time, Mr. Flow has implemented best-in class standard operating procedures and has been able to cultivate premium quality high THC medical cannabis.
Genetics Portfolio
The Company has successfully exported its flagship high-THC strains – BC Pink Kush, BC Black Cherry and BC Strawnana – from Canada to Portugal. Holigen has established a robust stock of healthy mother plants and has initiated its first harvest. Preliminary testing results for BC Black Cherry indicate more than 25% THC content and for BC Strawnana early testing at more than 27% and is expected to continue to rise. These tests are in process tests and are indicative of the strains baring high-THC in their finished format.
In addition to the Flowr genetics portfolio, Holigen has received import permits for a wide assortment of genetics from Cookies, including their notable strains such as Gary Payton, Cereal Milk, Gelatti, Pancakes and Pink Runtz.
Holigen has initiated the product registration process and will submit for market authorization in Portugal, Germany, UK, and others in the first quarter of this year, and expects to receive approvals in the second half of 2022.
Co-Manufacturing Services
In Portugal, there are several GACP cultivators, predominantly operating out of greenhouse facilities, that require GMP tolling services. After successfully completing validation batches in 2021 and generating approx. €500k in revenue from tolling services last year, the company is now offering these services to additional clients. Holigen expects this to exceed €500,000 per quarter in the second half of 2022. The tolling services are primarily comprised of trimming, drying, curing and packaging of medical cannabis for Holigen’s clients.
Lab Services
The Sintra facility is fitted out with a state-of-the-art laboratory equipment, including GC and HPLC diagnostic machines. With its GMP cannabis testing license, Holigen has initiated third-party lab services, providing medical cannabis testing such as cannabinoid potency testing, Alfatoxins and ochratoxin and microbiological testing. Holigen expects the launch of third-party lab services to result in significant annual revenue.
About The Flowr Corporation
The Flowr Corporation is a Canadian cannabis company with operations in Canada and the European Union. 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 services 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 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 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 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.
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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