The Flowr Corporation (CVE:FLWR) (OCTMKTS:FLWPF) has filed a preliminary short-form base-shelf prospectus with securities regulators in each province of Canada, except for Quebec, that would allow the company to offer up to $175 million in securities.
"Although we have no immediate plans to raise capital through this shelf prospectus filing at this time, we believe it's prudent to give the company the flexibility to access capital in the future when opportunities emerge to continue executing on our global growth strategies," said CEO Vinay Tolia in a statement.
"Despite the recent market volatility, we continue to be bullish on the growth opportunities in our businesses globally in 2020 and beyond. As we stated in our Q3 update, we believe we'll be cash flow break even in the second half of 2020, with the capital available to us today."
He added that Flowr's management and insider ownership exceeds 50% and the interests of both management and the board “are highly aligned with all current and future shareholders of the company."
The shelf prospectus, when made final, will allow the company to make offerings of common shares, preferred shares, debt securities, subscription receipts, warrants or any combination of up to $175 million during the 25-month period that the shelf prospectus is effective, the company said.
If any securities are offered under the shelf prospectus, when made final, the terms of any such securities and the intended use of the net proceeds resulting from such offering would be established at the time of any offering and would be described in a prospectus supplement filed with the applicable Canadian securities regulators at the time of such an offering. The purpose of the shelf prospectus is to shorten the timeline to raise funds for growth opportunities and working capital.
In other news, Flowr said it will participate in two industry conferences in January. CEO Tolia will present on January 14 at 4:30 pm ET at ICR 2020 in Orlando, Florida. And President Lance Emanuel will participate on a panel discussion on January 14 at the 8th Annual AltaCorp Institutional Investor Conference, in Toronto.
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.
Flowr stock recently traded up 1.7% to US$1.52 in New York and rose 1.5% to C$2.03 in Toronto.
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