Flowr Corporation (TSXV:FLWR) (OTC:FLWPF) has agreed to sell its interest in the Kelowna Research Station R&D facility to Hawthorne Canada Limited The Toronto-based Flowr Corp. said the C$16 million ($12.6 million) deal is expected to close in the second quarter and will result in cash proceeds of $4 million and the elimination of $12 million of long-term debt. Shares of Flowr Corp. have gained 16.7% so far in 2022, compared to a 12.3% drop by the Cannabis ETF.
The KRS sale, subject to certain closing conditions, is expected to close in Q2 2022.
"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. 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," Darryl Brooker, Flowr CEO said. "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."
Flowr's 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 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.
The company 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.
