Canadian cannabis company Flowr Corp (OTC: FLWPF) will acquire Holigen Holdings Limited.
The company recently announced an investment that would leave it with ownership of 19.8% of Holigen. Flowr said Monday afternoon it would instead acquire the entire business in a cash and stock deal.
Holigen and its shareholders will receive of 32,632,545 Series 1 Voting Convertible Redeemable Preferred shares of Flowr, a cash consideration equivalent to €4,269,927.31 “an amount equal to the Canadian dollar equivalent of certain amounts loaned by related parties to a Vendor to Holigen, up to a maximum amount of C$2,000,000.”
Flowr will also pay more than €1.3 million in Holligen debt.
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Flowr CEO Vinay Tolia said the acquisition is “a natural evolution” of the company’s strategy.
“The combination of Flowr’s leading cultivation know-how and facility design with Holigen’s global footprint, expertise in GMP, and deep pharmaceutical experience is an excellent fit," Tolia said in a press release. "The opportunities in the European and Australian-Asian medical cannabis markets are enormous and Holigen brings unmatched scale to service these regions.
Tolia said the Flowr team has been working closely with Holigen’s management to help develop its assets – especially Aljustrel, its outdoor cultivation facility in Portugal.
“Aljustrel, which is expected to be operational in the second half of 2019, is a planned 7 million square foot outdoor cultivation footprint with an expected ability to produce over 500,000 kilos annually and was deemed a Project of National Interest by the Portuguese Government." said Tolia. "This acquisition positions us to be successful with two distinct and economically sustainable strategies, the premium dried flower market in Canada and the low-cost, large-scale extract medical market globally.”
Earlier this year, Flowr Corp was approved for a Nasdaq listing, which is expected to take place some time later this year.
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