Flowr Corp Sells Portugal Assets To Akanda For $35 Million
The Flowr Corporation (TSXV: FLWR) has begun selling off assets to remain afloat. The firm this morning indicated it will be selling off its Portugal-based operations this morning as a means of reducing its current debt.
The transaction will see the company sell Holiden Holdings to that of Akanda Corp (NASDAQ: AKAN) in a cash and stock transaction valued at $35.0 million. The sale will see certain intercompany receivables included, as well as $5.1 million of indebtedness associated with the Portugal operation.
Consideration is to consist of $3.75 million in cash, 1.9 million common shares of Akanda, $5.1 million in assumed debt, and $834,000 in interim funding for the operation. As part of the transaction, Akanda will also invest $1.0 million into Flowr, which is meant to “ensure that both parties are aligned to the future success of both Flowr and Akanda.”
The sale of the Portugal-based assets follows an auction process conducted by the company to “solidify its balance sheet.” The closing of the transaction is expected to reduce the firms senior debt to $2.6 million, while cash and marketable securities will amount to $25.0 million.
As of September 30, the company reported a cash position of $7.9 million, with total current assets of $24.2 million. Current liabilities meanwhile totaled $13.9 million. Revenue for the nine month period meanwhile amounted to $8.5 million, of which $0.6 million was attributed to Holigen, or just 6.9%. That revenue was generated via cost of sales of $2.2 million.
The transaction is subject to the approval of the TSX Venture. Closing is expected to occur in the second quarter of 2022.
Flowr Corporation last traded at $0.08 on the TSX Venture.
Information for this briefing was found via Sedar and the Flowr Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
