FLWPF - The Flowr inks strategic acquisition of Terrace Global

The Flowr ([[FLWPF]] +1.2%) inked a definitive agreement to acquire all of the issued and outstanding common shares of Terrace Global, a multi-country operator led by experienced cannabis entrepreneurs focused on the development and acquisition of international cannabis assets.The all-share acquisition is valued at ~$63M based on Flowr's closing share price as of Oct.19, 2020.Transaction expected to close by 2020-end.Under the transaction, all insiders of Flowr will be required to convert their debentures into Flowr Shares, representing a conversion of at least $11.9M principal amount of debentures.The company has identified ~$2M in annual cost synergies from joining two public company’s infrastructures; on a pro forma basis, it will have $31M+ of cash and marketable securities on its balance sheet.Post the transaction, Flowr's overall indebtedness will be reduced by at least $11.9M.

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The Flowr inks strategic acquisition of Terrace Global