Flower One Announces Receipt of USD$5M Loan

Flower One Announces Receipt of USDM Loan

Loan to Provide Company with Near-Term Financial Flexibility, and Ability to Complete First Phase of Greenhouse Upgrades LAS VEGAS–(BUSINESS WIRE)–Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE: FONE) (OTCQX: FLOOF) (FSE: F11), the leading cannabis cultivator and producer in Nevada, is pleased to announce the receipt of a $5M loan (the “Loan”) from RB Loan Portfolio II, LLC, (the “Term Lender”). All amounts are expressed in U.S. dollars unless indicated otherwise. “This capital infusion will enable us to complete the first phase of capital expenditures and provide working capital to the business. We are grateful for the runway this will provide as we work towards our goal of achieving positive cash flow,” said Kellen O’Keefe, President & CEO of Flower One. The Company and certain of its subsidiaries are parties to an existing loan agreement with the Term Lender with respect to the Company’s existing $45.65M term debt (the “Term Debt”), secured by the facility at 3950 N. Bruce St., North Las Vegas, Nevada. The Company’s receipt of the Loan was facilitated by the assignment to an insider of the Company, of a portion of the interest owing in the Term Debt from the Term Lender in the amount of $5M. The Loan has made an additional $5M available to the Company with respect to the Term Debt. The maturity date of the Term Debt is June 30, 2023. The Company has determined that the Loan is exempt from the formal valuation and minority approval requirements applicable to related party transactions under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) pursuant to the financial hardship exemptions set forth in Sections 5.5(g) and 5.7(1)(e) of MI 61-101. “We have been working diligently with our lenders to find solutions that position Flower One for…

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Source : Flower One Announces Receipt of USDM Loan

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