Flowr To Raise Up To $15M To Fund Holigen's Portugal Project
Flowr Corp (OTC: FLWPF) said Monday that it plans to complete a private stock placement to fund activities that include including construction in Portugal and Australia.
The placement will be done with insider participation, according to the Canadian cannabis company.
What Happened
Flowr Corp intends to offer up to 2.4 million shares at CA$6.25 ($4.66) apiece for total gross proceeds of up to CA$15 million.
Among the investors participating in the non-brokered private placement are Chairman Steve Klein, who will participate through Core Flow Canada Holdings, Flowr CEO Vinay Tolia and several members of the company's board of directors, including new board member Don Duet. Insiders are expected to invest around C$3.6 million through the placement.
The Canadian cannabis company said it has appointed Thierry Elmaleh as head of capital markets. It also announced that Lead Independent Director Rishi Shah has stepped down and is being replaced by current member Karen Basian.
Elmaleh's seat will be taken by Duet, former partner and head of the global technology division at Goldman Sachs Group Inc (NYSE: GS). At the same time, Flowr co-CEO Tom Flow is transitioning to the position of founder and managing partner.
Why It's Important
The proceeds from the placement are expected to be used for general working capital purposes, including the funding of construction of certain operations for Holigen Holdings Limited, a Europe-based cannabis company that is working on GMP-compliant medical cannabis cultivation facilities in Portugal and Australia.
Flowr is in the process of completing the acquisition of a 19.8-percent stake in Holigen and said it's evaluating an even larger stake or acquisition. Through the investment, Flowr is supporting Holigen's 45-million-euro ($50.48-million) investment in Portugal.
What's Next
Flowr said it expects the private placement to close May 10.
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