Flowr pushes for international growth with Terrace Global deal
Published on October 22, 2020 by oz. staff
The Flowr Corporation has made a $63-million all-stock deal to acquire Terrace Global—a Canadian company specializing in the development and acquisition of international cannabis assets.
Flowr says the move gives it more capital to execute on its growth strategy, improves its financial position and seeks to merge two teams of cannabis entrepreneurs.
It’s expected to close by the end of 2020.
“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,” said Flowr CEO Vinay Tolia.
Flowr is a licensed cannabis producer with its state-of-the-art production campus in Kelowna and its HQ in Toronto.
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“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 Tolia.
It would mean the previously announced joint venture with Terrace Global in Portugal will become wholly owned by Flowr. The Terrace footprint includes Spain, Portugal and Uruguay.
The acquisition bolsters Flowr’s balance sheet with more than $31 million in cash and marketable securities to support its growth. Flowr said it will be concurrently negotiating with its senior lenders toward financial flexibility going forward.
Flowr said the deal still needs to be approved by two thirds of Terrace shareholders. It has so far secured support from about 38% of shareholders.
The full statement is here.