FLWPF - Flowr to sell Holigen for ~$35M

Cannabis company Flowr (OTCPK:FLWPF) has agreed to sell its wholly-owned subsidiary, Holigen Holdings, for ~$35M. Holigen entered into a share purchase deal with Akanda (NASDAQ:AKAN) and Cannahealth, a wholly-owned subsidiary of Akanda, pursuant to which the latter will acquire all of issued and outstanding Holigen shares, together with certain intercompany receivables. Akanda has also agreed to subscribe for $1M of Flowr common shares, contingent upon TSXV approval. The proposed deal is expected to bolster Flowr's financial position by increasing cash by ~$4.8M and reducing indebtedness by ~$5.1M. It will also result in the immediate funding of Holigen's operating expenses. In addition, the parties will forge a transition services agreement, under which Flowr will assist Akanda and Holigen for at least 90 days following closing of the proposed transaction. The deal is expected to close in Q2 of 2022.

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Flowr to sell Holigen for ~$35M