| Shelf Prospectus brings financing flexibility as the Company explores expansion beyond Nevada
TORONTO, Ontario, September 30, 2019 – Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE: FONE) (OTCQX: FLOOF) today announced that it has filed a preliminary short form base shelf prospectus (the “Shelf Prospectus”) with the securities regulatory authorities in each of the provinces of Canada except for the Province of Qubec. A copy of the Shelf Prospectus can be found on the Company’s issuer profile on SEDAR at www.sedar.com.
The Shelf Prospectus will allow the Company to offer up to US$250 million of common shares, debt securities, subscription receipts, units, warrants, or any combination thereof, from time to time during the 25-month period after the applicable Canadian securities regulatory authorities have issued a receipt for the final prospectus. Should the Company decide to offer securities during this period, the specific terms, including the use of proceeds from any such offering, will be set forth in a prospectus supplement related to the Shelf Prospectus, which will be filed with the applicable Canadian securities regulatory authorities.
“We are proceeding with a Shelf Prospectus, as it will provide us with further access to capital as needed and the flexibility to capitalize on strategic expansion opportunities,” said Ken Villazor, President and Chief Executive Officer of Flower One. “From the beginning, we pursued a highly-differentiated and disciplined approach to building our business in the U.S. cannabis space by focussing initially on a single state market and going deep in that market to demonstrate to our shareholders that we can execute at scale with efficiency, and with industry-leading timelines.”
Mr. Villazor added: “In June, we announced the inaugural harvest at our 400,000 square-foot, high-tech greenhouse, which is the largest commercial-scale greenhouse in the state of Nevada. Earlier this month, we announced the commercial launch of our technologically advanced extraction and production lab, which, along with post-harvest systems, occupies a 55,000 square-foot facility which is adjacent and interconnected with our greenhouse. Both of these announcements essentially represent the successful completion and successful build-out of the Company’s Nevada cultivation, processing, and production verticals. Our executional success to date in the Nevada market, which is one of the strongest cannabis markets in the United States, has allowed us to now begin looking further afield and explore where we may expand the Flower One model and commercial footprint in the United States.”
The Company is also considering the use of the Shelf Prospectus to allow for an “at-the-market distribution” in accordance with applicable securities laws. An at-the-market distribution provides for securities to be sold by registered dealers on behalf of the Company into the trading market at the prevailing market price. Currently, the Company has not entered into any agreements for an at-the-market distribution. |