The Flowr Corporation FLWPF (TSX.V:FLWR) released its financial results for the period ended September 30, 2022.
Q3 2022 Financial Highlights
-
Net revenue was CA$1.8 million, a 28% decrease compared to CA$2.5 million in Q3 2021.
-
Gross loss before fair value adjustments, was CA$1.4 million compared to loss of CA$4.7 million in Q3 2021.
-
Net loss from continuing operations was CA$3 million compared to CA$9.1 million in Q3 2021.
Key Q3 events:
-
On July 27, 2022, the company completed the sale of its KRS research facility to Hawthorne Canada Limited for an aggregate purchase price of CA$15.9 million. The company used the proceeds from the sale of this non-core asset to reduce the outstanding principal debt under its ATB led credit facility.
-
On August 10, the company announced a leadership transition and governance changes with the appointment of Darren Karasiuk to the role of CEO and director and the additions of Stephen Arbib as chairman and Marvin Singer to the board of directors.
-
On August 11, the company sold it’s Flowr Forest assets for CA$3.4 million cash. The company used CA$1 million of the proceeds from the sale of this non-core asset to repay the outstanding balance of its ATB-led credit facility in full.
-
As at September 30, 2022, the company had insufficient cash on hand to fund its planned operations for the next 3 months. In addition, the company was not successful in obtaining the necessary funding.
Subsequent events:
-
On October 20, 2022, the company initiated proceedings under the Companies’ Creditors Arrangement Act and obtained an initial order from the Ontario Superior Court of Justice (Commercial List) which included, among other things, a stay of proceedings, approval of a debtor-in-possession loan in the amount of CA$2 million from 1000343100 Ontario Inc., and the appointment of Ernst & Young Inc. as monitor.
-
On October 28, 222, the court issued an order authorizing and directing the company to undertake a sale and investment solicitation process. All bids under the SISP were due on November 25, 2022.
-
On November 3, 2022, the court authorized the company to enter into a stalking horse purchase agreement between The Flowr Canada Holdings ULC, as vendor, The Flowr Group (Okanagan) Inc. and the DIP Lender, as purchaser.
Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.
Photo by Esteban Lopez on Unsplash
Related News
The Flowr Corp. Completes The Sale Of KRS Research Facility For $15.9M