The facility in Aljustrel is jointly operated with Terrace Global (CVE:TRCE), a Canadian company focused on the development and acquisition of international cannabis assets.
Under the second tranche, Flowr will receive C$500,000 as part of the equity line and profit share agreement with Terrace, which will fund the operations and certain expenditures at Aljustrel in exchange for a stake in Flowr.
READ: The Flowr Corporation generates C$1 million in revenue from premium product BC Pink Kush in its first quarter
“We are very pleased by the progress in Aljustrel and continue to work closely with Terrace Global towards a successful harvest later this year,” Flowr CEO Vinay Tolia said in a statement.
“Thus far the crops in Aljustrel look very promising and we continue to be on track to harvest the fields in 4Q 2020. It’s exciting to be leading what we believe to be one of the largest outdoor THC cultivation projects in Europe to date.”
Aljustrel is a rapidly developing site for cannabis production, extraction, and manufacturing facilities in Portugal. It has been designated a project of national interest by the Portuguese government, a designation that cuts down bureaucratic red tape, allows for quick regulatory licensing, as well as access to funding.
As per the term sheet of the second tranche, Flowr issued Terrace 961,538 shares priced at C$0.52 and an equal amount of whole warrants exercisable $0.76 for a three-year term. The second tranche is subject to the final approval of the TSX Venture Exchange and all securities issued under are subject to a customary four-month hold period and may not be traded before December 6, 2020.
Terrace Global is expected to fund at least C$3 million under the agreement.
Contact Angela at firstname.lastname@example.org
Follow her on Twitter @AHarmantas