KELOWNA, British Columbia, July 15, 2019 (GLOBE NEWSWIRE) — The Flowr Corporation (TSXV: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) is pleased to announce receipt of a second site cultivation license from Health Canada for its Flowr Forest project. The Company has begun transplanting select cultivars and is on track for a first harvest in the fourth quarter of 2019. Flowr expects to produce approximately 10,000 kilograms per annum from Flowr Forest once fully optimized and operational.
Flowr Forest, which is located on the Company’s Kelowna campus, has 42 greenhouses totaling 189,000 square feet situated within a total licensed outdoor grow area of more than 530,000 square feet. The outdoor cultivation area planted is expected to be 150,000 square feet and can be expanded to include an incremental 160,000 square feet. The Company in total has over 750,000 square feet dedicated to Flowr Forest’s current and future operations and has a right of first refusal on an additional 850,000 square feet located immediately to the north and contiguous with the currently licensed area.
“We are extremely pleased to have a cultivation license for Flowr Forest in time to deliver production in 2019. Getting a second site license required a tremendous effort from our whole team as well as working collaboratively with Health Canada to get to this stage in a timely manner. All site work was already complete, so we are in the process of transplanting cultivars and expect an additional 10,000 kilograms of production on top of what we will produce at our Kelowna 1 indoor facility,” said Vinay Tolia, Flowr’s Chief Executive Officer. “By having our outdoor and greenhouse areas on the same campus as our indoor facilities, our cultivation team works from a single location and this is a key to driving efficiency and optimization in our Canadian operations.”
Once fully optimized and operational, the 10,000 kilograms per annum doubles the expected capacity of grow areas currently operating and/or under development at Flowr’s Kelowna campus. The Company’s Kelowna 1 indoor facility (“K1 Facility”) is expected to produce 10,000 kilograms per annum once construction is complete and the operation is fully optimized. Construction of the K1 Facility is on track for completion by the end of the third quarter of 2019.
Product Line Expansion Plans
Flowr remains committed to producing differentiated products and its dried flower products are expected to continue to be sourced exclusively from the purpose-built indoor facilities in Kelowna, whereas cannabis cultivated within Flowr Forest is expected to support Flowr’s forthcoming extract business. Furthermore, with the recently announced changes to the regulatory framework and proposed timing for additional form factors to reach consumers in late 2019 or early 2020, the licensing of Flowr Forest positions the Company for a timely launch of its expanded adult-use recreational product line.
The Company expects its first new product launch from Flowr Forest to be a live resin vape offering. The Company believes its deep expertise in cultivating superior plants positions it to produce exceptional flower for use in extraction. Building on Flowr’s existing expertise, the Company is investing in the people, processes, and infrastructure to deliver a live resin vape product that will meet the expectations of cannabis consumers in Canada.
Live resins are generated through specific and proprietary harvest, processing and extraction systems which together optimally preserve the full range of cannabinoids and aromatic characteristics of the source cannabis plant. The result is a cannabis concentrate with richly aromatic terpene profiles that are true to plant without the need for additional diluents, preservatives or flavouring.
The Company, therefore, believes that its live resin vape offering will represent an ideal product to showcase Flowr’s superior cultivation expertise and that is expected to deliver consumers a similar experience, including taste and aroma, associated with Flowr’s dried flower products.
About The Flowr Corporation
Flowr, through its subsidiaries, holds cannabis production and sales licenses granted by Health Canada. With a head office in Toronto and a production facility in Kelowna, BC, Flowr builds and operates large-scale, GMP-designed cultivation facilities utilizing its own growing systems. Flowr’s investment in research and development along with its sense of craftsmanship and a spirit of innovation is expected to enable it to provide premium-quality cannabis that appeals to the adult-use recreational market and addresses specific patient needs in the medicinal market.
For more information, visit flowr.ca. Follow Flowr on Twitter: @FlowrCanada; Facebook: Flowr Canada; Instagram: @FlowrCanada; and LinkedIn: The Flowr Corporation.
On behalf of The Flowr Corporation:
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This press release includes forward-looking information within the meaning of Canadian securities laws regarding Flowr and its business, which may include, but are not limited to: the expected capacity at the Kelowna campus doubling, statements with respect to the K1 Facility, including its expected capacity and timing of completion or construction, Flowr’s deep expertise in cultivating superior plants positioning it to produce exceptional flower for the use in extraction, Flowr’s investment in research and development along with its sense of craftsmanship and a spirit of innovation enabling it to provide premium-quality cannabis that appeals to the adult-use recreational market and address specific patient needs in the medicinal market, the Company being on track for a first harvest from the Flowr Forest in the fourth quarter of 2019, Flowr producing approximately 10,000 kilograms per annum from the Flowr Forest when fully operational and optimized, the outdoor cultivation planted being 150,000 square feet and the ability to expand to an incremental 160,000 square feet, Flowr executing its expansion plan once the current platform of greenhouses and outdoor grow are fully operational, live resin vape offerings representing an ideal product to showcase Flowr’s superior cultivation expertise and such offerings delivering consumers a similar experience, including taste and aroma associated with Flowr’s dried flower products, Flowr producing from the Flowr Forest in 2019, working from a single location at the Kelowna Campus driving efficiency and optimization, dried flower products being sourced exclusively from Flowr’s indoor facilities, cannabis cultivated within the Flowr Forest supporting Flowr’s extract business, Flowr having an extract business, the licensing of Flowr Forest positioning the Company for a timely launch of its expanded recreational use product line, Flowr developing and commercializing a vape product that will compete in the premium segment of the market, Flowr investing in people, processes and infrastructure to deliver a live resin vape product that will meet the expectations of consumers, use of live resin vape products resulting in an end product that delivers consumers a similar experience, taste and aroma associated with Flowr’s dried flower products and other factors. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of Flowr’s management and are based on assumptions and subject to risks and uncertainties. Although Flowr’s management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this press release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Flowr, including risks associated with the Company not being able to double its capacity at the Kelowna campus (including not being able to achieve forecasted capacity at the K1 Facility or Flowr Forest), which could result in supply shortages and have a material impact on Flowr’s financial results, the Company not having a first harvest from the Flowr Forest in the fourth quarter of 2019, which would delay commercial sales of products derived from the Flowr Forest, and thus impact Flowr’s financial results, Flowr not being able to produce approximately 10,000 kilograms per annum from the Flowr Forest when fully operational and optimized, which would impact Flowr’s capacity, financial results and operations, Flowr not being able to plant and cultivate 150,000 square feet, which could impact products being derived from the Flowr Forest, its business and/or its financial results, Flowr not having the ability to expand to an incremental 160,000 square feet, which would reduce Flowr’s capacity, Flowr not being able to complete construction of the K1 Facility or any delay in construction, which would result in supply shortages and have a material adverse impact on Flowr’s revenues, financial condition, business and operations, Flowr not being able to effectively grow cannabis outdoor given its limited experience in growing in greenhouses and/or outdoors, which could result in significant crop failures, losses and reduced profitability, Flowr not be able to execute its expansion plan once the current platform of greenhouses and outdoor grow are fully operational, which would impact Flowr’s growth strategy, Flowr not being able to produce product from the Flowr Forest in 2019, which would impact its business, results of operations and financial results, and delay Flowr’s entry into other form factor markets, the failure to drive efficiencies and optimization by working from a single location, which could impact Flowr’s financial results and operations, Flowr not sourcing dried flower products exclusively from Flowr’s indoor facilities, which could have a material impact on the quality of Flowr’s products and its reputation, cannabis cultivated within the Flowr Forest not being able to support Flowr’s extract business, thus reducing profitability for Flowr, Flowr not being able to execute on its planned extract business, which would impact Flowr’s ability to compete in other form factor markets and reduce its probability and competitive edge, Flowr not being positioned for a timely launch of its expanded adult-use recreational product line, thus delaying entry into a new market and delaying sales from such market, Flowr not being able to develop and commercialize a vape product that will compete in the premium segment of the market, Flowr not investing in people, processes and infrastructure to deliver a live resin vape product that will meet the expectations of consumers, which could impact Flowr’s ability to bring such products to the market, Flowr not being able to deliver live resin vape products resulting in an end product that delivers consumers a similar experience, taste and aroma associated with Flowr’s dried flower products, or such live resin products not resulting in such experiences, Flowr’s live resin product not having the features described herein, including the inability of such products to showcase Flowr’s superior cultivation expertise or in delivering consumers a similar or desired experience associated with Flowr’s dried flower products, the live resin product not representing an ideal product, the failure to commercialize such a product, which could have a material impact on Flowr’s ability to capture market share in the other form factors market, which could materially adversely impact its financial condition, business and operations, Flowr not being able to get Flowr Forest fully operational or being delayed in getting it fully operational, Flowr not being able to sustain its competitive advantage in cultivation and being unable to remain at the forefront of industry innovation, whether as a result of failed construction of the facilities or otherwise, Flowr not being able to meet demand or fulfill purchase orders, which could materially impact revenues and its relationships with purchasers, Flowr requiring additional financing from time to time in order to continue its operations and such financing may not be available when needed or on terms and conditions acceptable to the Company, new laws or regulations adversely affecting the Company’s business and results of operations, results of operation activities and development of projects, project cost overruns or unanticipated costs and expenses, the inability of Flowr’s products to be high quality, the inability of Flowr’s products to appeal to the adult-use recreational market and address specific patient needs in the medicinal market, the inability of Flowr to produce and distribute premium, high quality products, the inability to supply products or any delay in such supply, Flowr’s securities, the inability to generate cash flows, revenues and/or stable margins, the inability to grow organically, risks associated with the geographic markets in which Flowr operates and/or distributes its products, risks associated with fluctuations in exchange rates (including, without limitation, fluctuations in currencies), risks associated with the use of Flowr’s products to treat certain conditions, the cannabis industry and the regulation thereof, the failure to comply with applicable laws, risks relating to partnership arrangements, possible failure to realize the anticipated benefits of partnership arrangements, product launches (including, without limitation, unsuccessful product launches), the inability to launch products, the failure to obtain regulatory approvals, economic factors, market conditions, risks associated with the acquisition and/or launch of products, the equity and debt markets generally, risks associated with growth and competition (including, without limitation, with respect to Flowr’s products), general economic and stock market conditions, risks and uncertainties detailed from time to time in Flowr’s filings with the Canadian Securities Administrators and many other factors beyond the control of Flowr. Although Flowr has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking information can be guaranteed. Except as required by applicable securities laws, forward-looking information speaks only as of the date on which it is made and Flowr undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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