The Flowr Corporation has entered into a definitive agreement to acquire all of the issued and outstanding common shares in the capital of Terrace Global. The all-share Acquisition is valued at approximately $63 million based on Flowr’s closing share price as of October 19, 2020. "The Transaction provides the Company with additional capital to execute on its growth strategy, improves its overall financial position and seeks to merge together two teams of successful cannabis entrepreneurs," the team with the company explains. The Transaction is expected to close by the end of 2020.
“We are extremely excited to deepen our existing relationship and partnership with Terrace Global into a full combination of the two companies. Together, we believe that we have a more robust financial profile which will give us sufficient access to liquidity to pursue our strategic objectives in Canada and internationally,” said Vinay Tolia, Flowr’s CEO. “The team at Terrace has a great deal of success in the Cannabis industry and we are very pleased to have them join the Flowr family in our mission to create one of the preeminent players in the industry for years to come,” added Mr. Tolia.
The Company believes that wholly owning Terrace Global will create better operating efficiencies within its existing JV Partnership in its European business as Holigen continues to scale its operations. In addition, the Company has identified approximately $2 million in cost synergies from joining two public company’s infrastructures. On a pro forma basis, the Company will have more than $31 million of cash and marketable securities on its balance sheet, which will give it sufficient access to resources to continue to execute on its strategic plan and to capitalize on potential opportunities as they arise.
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