Flowr received a loan commitment from a syndicate of lenders led by ATB Financial in its capacity as lead arranger and administrative agent for up to $50 million of committed senior secured credit facilities
Pursuant to the ATB credit facilities, the corporation will be permitted to use a recapitalization term facility and a revolving operating credit facility for general working capital purposes and a development facility for the development of its Kelowna 1 Facility, Kelowna 2 Facility and Flowr Forest.
The ATB credit facilities will have a maturity day of three years. Under the terms of the ATB credit facilities, 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 million. The applicable margins for the ATB credit facilities is based on certain performance-pricing grids, ranging from 250 bps to 325 bps for bank acceptances and letters of credit, 125 bps to 200 bps for prime loans, and certain standby fees.
Based in Toronto, Flowr, through its subsidiaries, holds a cannabis production and sales license granted by Health Canada.