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ATB Financial Leads $25MM Syndicated Credit Facility for The Flowr Corporation

November 20, 2019, 09:00 AM
Filed Under: Cannabis

The Flowr Corporation announced that it has closed its previously announced credit facility from a syndicate of lenders led by ATB Financial and including Farm Credit Canada.

The $25 million facilities consist of a $24.5 million recapitalization term facility and a $500,000 revolving operating credit facility (together the “ATB Credit Facilities”). Pursuant to conditions of the ATB Credit Facilities, 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,” commented Vinay Tolia, Flowr’s Chief Executive Officer.  “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 (3) years. The applicable margins for the ATB Credit Facilities are subject to certain performance-pricing grids, as well as certain standby fees. The Company will be subject to customary financial and restrictive covenants under the terms of the ATB Credit Facilities.

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