The facilities consist of a $24.5 million recapitalization term facility and a $500,000 revolving operating credit facility. Flowr will receive a first tranche of funding of approximately $20.05 million on closing with the remaining of the recapitalization term facility available subject to certain conditions.
“We are extremely pleased to strengthen our financial position through non-dilutive financing at attractive pricing,” said Vinay Tolia, Flowr’s CEO. “The reduced size of the ATB credit facilities compared to the initial commitment reflects our reduced capital needs as we focused on those investments with the greatest potential to generate cash flow in the near term. With our third quarter earnings release on November 26, 2019, we will provide our shareholders with a comprehensive business update.”
The ATB credit facilities have a maturity date of three years. The applicable margins are subject to certain performance-pricing grids, as well as certain standby fees.
Flowr is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia