The Flowr Corporation (CVE:FLWR) (OTCMKTS:FLWPF) has closed on a fifth tranche from its C$3 million agreement with Terrace Global Inc (CVE:TRCE) to help fund its outdoor medical cannabis site in Portugal.
The facility in Aljustrel is jointly operated with Terrace Global, a Canadian company focused on the development and acquisition of international cannabis assets.
Under the fifth tranche, Flowr will receive C$1 million as part of the equity line and profit share agreement with Terrace Global, which will fund the operations and certain expenditures at Aljustrel in exchange for common shares and warrants in Flowr. Terrace Global is expected to fund at least C$3 million under the agreement.
READ: The Flowr Corporation sees second-quarter revenue rise driven by jump in cannabis sales
As part of the fifth tranche, Flowr has issued to Terrace Global 1,923,077 common shares at $0.52 each and an equal amount of common share warrants. Each warrant is exercisable into one full common share of the company at $0.76 apiece for a period of 36 months from October 9.
The fifth tranche remains subject to the final approval of the TSX Venture Exchange. The securities issued are subject to the customary four-month hold period and may not be traded before February 10, 2020.
In a statement Saturday, Toronto-based Flower noted that the parties to the agreement amended the terms such that Terrace Global’s percentage of net proceeds will be increased by 2.5% for every additional $200,000 funded in excess of $3 million to a maximum of 50% of net proceeds.
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