Shares of Flowr jumped 9.5% at C$7.50 in Canadian trading on Monday.
Flowr will be permitted to use both a recapitalization term facility and a revolving operating credit facility for general working capital purposes and development for its Kelowna 1 facility, Kelowna 2 facility and Flowr Forest. The credit facilities will have a maturity date of three years.
Under the terms, the corporation will be subject to certain financial, positive and negative covenants. In addition, the ATB Credit Facilities provide for an accordion of up to $50,000,000.
The firm said margins will be based on performance-pricing grids, ranging from 250-325 basis points for bank acceptances and letters of credit, 125-200 basis points for prime loans, and certain standby fees.
Flowr, through its subsidiaries, holds a cannabis production and sales licence granted by Health Canada. Headquartered in Toronto with a production facility in Kelowna, British Columbia, Flowr builds and operates large-scale, cultivation facilities utilizing its own patented growing systems. When fully completed, Flowr’s Kelowna campus is expected to produce over 50,000 kg of premium flower annually.
Flowr is expanding globally in Portugal and Australia, and recently broke ground on a 50,000 square feet R&D facility in partnership with Hawthorne, a subsidiary of Scotts Miracle Gro.
Contact Katie Lewis at [email protected]