The Flowr Corporation Announces Third Quarter 2022 Results
TORONTO, Nov. 28, 2022 (GLOBE NEWSWIRE) -- The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) announces its financial results for the period ended September 30, 2022. All financial information in this news release is reported in thousands of Canadian dollars and represents results from continuing operations, unless otherwise indicated.
Selected highlights and financial results:
In thousands of CAD dollars,
Three months ended
Nine months ended
(except loss per share and grams harvested)
Grams harvested - K1
Cost of sales
Impairment of inventory
Gross loss before fair value adjustments
Selling and marketing and G&A
Impairment of assets
Loss from disposal of subsidiary
Net loss from continuing operations
Basic and diluted loss per share from continuing operations
Key Q3 events:
On July 27, 2022, the Company completed the sale of its KRS research facility to Hawthorne Canada Limited for an aggregate purchase price of $15,900. The Company used the proceeds from the sale of this non-core asset to reduce the outstanding principal debt under its ATB led credit facility.
On August 10, the Company announced a leadership transition and governance changes with the appointment of Darren Karasiuk to the role of CEO and Director and the additions of Stephen Arbib as Chairman and Marvin Singer to the Board of Directors.
On August 11, the Company sold it’s Flowr Forest assets for $3,400 cash. The Company used $1,000 of the proceeds from the sale of this non-core asset to repay the outstanding balance of its ATB-led credit facility in full.
On September 30, 2022, Joanne Lee resigned from the board of directors of the Company.
As at September 30, 2022, the Company had insufficient cash on hand to fund its planned operations for the next 3 months. In addition, the Company was not successful in obtaining the necessary funding.
On October 17, 2022 Stephen Arbib resigned from the board of directors of the Company.
On October 20, 2022, the Company initiated proceedings under the Companies’ Creditors Arrangement Act (“CCAA”) and obtained an initial order (the “Initial Order”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”) which included, among other things, a stay of proceedings, approval of a debtor-in-possession loan in the amount of $2,000,000 from 1000343100 Ontario Inc. (the “DIP Lender”), and the appointment of Ernst & Young Inc. as monitor (the “Monitor”).
On October 28, 222, the Court issued an order authorizing and directing the Company to undertake a sale and investment solicitation process (the “SISP”). All bids under the SISP were due on November 25, 2022.
On November 3, 2022, the Court authorized the Company to enter into a stalking horse purchase agreement (the “Stalking Horse Purchase Agreement”) between The Flowr Canada Holdings ULC, as vendor, The Flowr Group (Okanagan) Inc. and the DIP Lender, as purchaser.
About The Flowr Corporation
The Flowr Corporation is a Canadian cannabis company with its operating campus, located in Kelowna, British Columbia. Flowr aims to support improving outcomes through responsible cannabis use and, as an established expert in cannabis cultivation, strives to be the brand of choice for consumers and patients seeking the highest-quality craftsmanship and product consistency across a portfolio of differentiated cannabis products.
For more information, please visit flowrcorp.com or follow Flowr on Twitter: @FlowrCanada and LinkedIn: The Flowr Corporation.
On behalf of The Flowr Corporation:
Chief Executive Officer
INVESTORS & MEDIA:
Phone Number: 250-277-2539
Certain statements made in this press release may constitute “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events. 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. 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 Company’s other publicly filed documents, which can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com, 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.
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