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.

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