Flower One Announces Significant Advancements with Ongoing Restructuring

Flower One Announces Significant Advancements with Ongoing Restructuring

Debt modifications and maturity extensions will allow the Company to conserve capital while providing significant cash flow benefits through reduced and deferred financial commitments 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 its advancements with its ongoing restructuring, including the restructuring of its term debt (the “Term Debt” or “Term Debt Modification Agreement”) and to its master lease (the “Master Lease” or “Master Lease Modification Agreement”). “This debt restructuring is a major step in our turnaround plan, as it will provide the Company with additional liquidity and a significant runway to continue our operational restructuring efforts, and position the Company for sustainable growth,” said Kellen O’Keefe, President & CEO. “We would like to thank our term lenders and loan participants for facilitating these momentous transactions.” Term Debt Restructuring The Company and certain of its subsidiaries have entered into a Term Debt Modification Agreement with RB Loan Portfolio II, LLC, (the “Term Lender”) with respect to the Company’s existing $45.65M Term Debt, secured by the facility at 3950 N. Bruce St., North Las Vegas, Nevada (the “Bruce Facility”). Through the Term Debt Modification Agreement, the Company would: (i) defer interest payments through October 31, 2022, in order to provide additional liquidity to the business, (ii) reduce the cash interest payments by 30%, (iii) extend the maturity date of the Term Debt to January 31, 2026, and (iv) pay $9M to the Term Lender on September 30, 2023 (the “First Loan Paydown”), whereas the Company has the option to pay this First Loan Paydown on January 31, 2024 with a 2.5% penalty. Master Lease Restructuring The Company through its subsidiaries has also entered into a Master Lease Modification Agreement in connection…

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