The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF) said Tuesday that it has closed its previously announced $25 million credit facility from a syndicate of lenders led by ATB Financial, including Farm Credit Canada.
In a statement, the Toronto-based cannabis company said the credit facility consists of a $24.5 million recapitalization term facility and a $500,000 revolving operating credit facility. In accordance with conditions of the ATB credit facilities being met, Flowr will receive a first tranche of nearly $20.05 million on closing. The remaining recapitalization term facility will be available, subject to certain conditions, said the company.
“We are extremely pleased to strengthen our financial position through non-dilutive financing at attractive pricing,” said Flowr Corp CEO Vinay Tolia in a statement.
“The reduced size of the ATB credit facilities compared to the initial commitment reflects our reduced capital needs as we focused on those investments with the greatest potential to generate cash flow in the near term,” he added.
The ATB credit facilities have a maturity date of three years. The applicable margins for the ATB credit facilities are subject to certain performance-pricing grids, as well as certain standby fees.
Meanwhile, the company said it will give shareholders a comprehensive business update when it reports its third-quarter earnings on November 26 after market close. This will be followed by a conference call and webcast to review the results at 5.30 pm Eastern Time.
Toronto-based Flowr Corp has cannabis operations in Canada, Europe, and Australia. Its Canadian campus in Kelowna, British Columbia includes a GMP-designed indoor cultivation facility; an outdoor and greenhouse cultivation site; and an R&D facility which is under construction.
The firm builds and operates large-scale, GMP-designed facilities that utilize proprietary growing methods to produce high-quality cannabis for recreational and medicinal use.
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