The Flowr Corporation Announces Listing of Four New Cannabis Strains Across Multiple Provinces

TORONTO – The Flowr Corporation (TSXV: FLWR, OTC: FLWPF) is pleased to provide an operational update on its Canadian operations and the progress in maintaining its status as a premium cannabis producer and making the requisite changes to its operations in order to reach profitability.

Sale of Non-Revenue Generating Asset

The Company has entered into an agreement to sell its interest in the Kelowna Research Station R&D facility to Hawthorne Canada Limited for an aggregate purchase price of $16 million, to be paid as follows: 1) an initial cash payment of $3.0 million; 2) full extinguishment of the principal amount outstanding under the existing loan agreement between Flowr and Hawthorne for the construction of the KRS Facility on closing, currently at approximately $12 million; and 3) the balance of the purchase price paid in cash upon closing. The KRS Sale is expected to close in Q2 2022 and is subject to certain closing conditions, including receipt of all necessary regulatory and third-party approvals.

“The KRS building and Hawthorne partnership has given us the ability to trial and commercialize exotic and unique cannabis strains, giving us a competitive advantage in the Canadian market,” commented Darryl Brooker, Chief Executive Officer. “Moving forward we will maintain a very close relationship with Hawthorne and will continue to benefit from shared Research and Development and the partnership will continue through a service agreement. In addition, this transaction further improves Flowr’s balance sheet with the cash proceeds of approximately $4 million and the elimination of $12 million of long-term debt outstanding.”

New Product Launches

Flowr is pleased to announce that four new genetics, BC Clementine Crush, BC Lemon Ice, BC Spiced Grape and BC Mango Melon OG, have been approved for listing across multiple provinces, including Quebec, Ontario, Alberta and British Columbia, launching in the months of March, April and May 2022. These additional listings will continue Flowr’s push to offer consumers differentiated exotic genetics, with high THC, high terpene contents, strong sensory profiles and premium quality buds.

Genetics Portfolio

Flowr has successfully completed trialing 44 new genetics and will shortly begin commercial growing of up to 10 new and exotic genetics selected for their unique terpene, morphological and THC profile. This new genetic pipeline is expected to launch in the second half of 2022 and the first half of 2023.

Canadian Retail Sales

Flowr continues to grow its Canadian retail sales in all provinces with products available in over 1,500 retail outlets across the country. This includes the listing of 11 SKU’s in Ontario with more to launch in the coming months.

The Company is pleased to announce the continued success of BC Dog Walkers, currently selling in Ontario and British Columbia and launching in Alberta in March 2022. BC Dog Walkers provide consumers with Flowr’s flagship strains, BC Pink Kush, BC Black Cherry and BC Strawnana, in a 0.35 gram pre-roll format that prioritizes convenience and accessibility. The pre-roll market in Canada has seen a significant increase since October 2018 and Flowr believes that providing its flagship strains in this format will further enhance its position as a premium cannabis producer.

Forward-Looking Information:

Certain statements made in this press release may constitute “forward-looking information”, “future oriented financial information” or “financial outlooks” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results including, but not limited to: the satisfaction of all of the conditions under the Supply Agreement; the anticipated size of the European medical cannabis market; the Company’s expectation that it will build on its achievements as it continues to invest in sales and marketing; Flowr servicing the global medical cannabis market and operating GMP facilities in Portugal; Flowr’s business, production and products; Flowr’s plans to provide premium quality cannabis to adult use recreational and medical markets; EU-GMP certification opening the medicinal cannabis opportunity for the Company in global markets; the Company being well positioned to distribute EU-GMP compliant product into underserviced markets; Flowr’s ability to realize revenue from the Company’s European operations within the anticipated timeframe or at all; Flowr’s ability to establish further sales and distribution channels in Europe to deliver medicinal cannabis to underserviced markets; future legislative and regulatory developments in Canada, in Europe and elsewhere; the cannabis industry in Canada and Europe, generally; the ability of Flowr to implement its business strategies; and the ability of can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the Flowr to produce or sell premium quality cannabis. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. To the extent any forward-looking information in this press release constitutes “future oriented financial information” or “financial outlooks”, within the meaning of applicable securities laws, the purpose of such information being provided is to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada.

There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information as discussed in the “Risk Factors” section of the Company’s 2020 Annual Information Form dated April 28, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

(This information is primarily sourced from The Flowr Corporation.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).