The Flowr Corporation announced that its wholly-owned subsidiary in Europe (“Holigen”) has received its Good Manufacturing Practice (GMP) certification in accordance with European Union standards, for its manufacturing facility in Sintra, Portugal. The GMP certification was issued by Infarmed, the Portuguese National Authority of Medicines and Health Products.
In accordance with the certification process, the Company is the process of responding to Infarmed’s final queries that will demonstrate the Company’s ability to continue to comply with GMP standards. This GMP certification allows the facility to manufacture and export GMP-certified finished medical cannabis products, specifically dried flower, from Portugal to international markets with legal medical cannabis regulations.
“We are very pleased to receive our GMP certification for our Sintra facility in Portugal,” said Pauric Duffy, Flowr’s Managing Director of Europe. “This is a critical license and step forward which will enable us to release final product into the European market. GMP is the worldwide standard by which pharmaceutical manufacturers judge their supply partners.”
“Our international strategy is a key component in driving sales growth and long-term value creation for our shareholders,” added Vinay Tolia, Flowr’s CEO. “This certification is a testament to our focus on quality and a huge accomplishment for the team in Europe as well as the global organization.”
Located just outside of Lisbon, Holigen’s Sintra facility is a purpose built facility with 6 grow rooms, a research and development lab and an expected extraction processing facility. Sintra is capable of producing approximately 1,800 kg of premium dried flower when fully optimized. Holigen’s European operations also include its Aljustrel site in Portugal which has more than 5,000,000 square feet of outdoor grow space, capable of producing in excess of 500,000 kilograms of cannabis when fully operational. The Company will require additional financing to complete the Aljustrel site.
Conversion of Preferred Shares
The Company also announced that, pursuant to the terms of a share conversion agreement entered into by DFT Trading Limited, Pleiades Trading Ltd. (together, the “Vendors”) and the Company in connection with the acquisition of Holigen (the “Conversion Agreement”), the Portugal Planting Milestone (Sintra) (as such term is defined in the Conversion Agreement) has been deemed achieved. As a result, on or about April 1, 2020, 7.5% of the 32,632,545 series 1 voting convertible redeemable preferred shares in the capital of the Company (collectively, the “Consideration Shares”) issued by the Company to the Vendors upon the closing of the acquisition of Holigen will convert to 2,447,441 common shares in the capital of the Company (the “Conversion”). The Company expects Pauric Duffy and Peter Comerford to issue early warning reports, respectively, and a press release in connection with the Conversion on April 1, 2020, in accordance with applicable securities laws.
The Flowr Corporation is a Toronto-headquartered cannabis company with operations in Canada, Europe, and Australia. Its Canadian operating campus, located in Kelowna, BC, includes a purpose-built, GMP-designed indoor cultivation facility; an outdoor and greenhouse cultivation site; and a state-of-the-art R&D facility that is currently under construction. From this campus, Flowr produces recreational and medicinal products. Internationally, Flowr intends to service the global medical cannabis market through its subsidiary Holigen, which has a license for cannabis cultivation in Portugal and will operate GMP-designed manufacturing facilities in Portugal and Australia.
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.