The Flowr Corporation completes sale of The Flowr Group (Okanagan) to Avant Brands
February 6, 2023 By Grow Opportunity Staff
(Globe Newswire) Toronto — The Flowr Corporation announces that its wholly owned subsidiary, The Flowr Canada Holdings ULC, has closed on the previously announced sale of all of the shares of The Flowr Group (Okanagan) Inc., and certain other assets of the company, comprising substantially all of the assets of the company to Avant Brands K1 Inc., for total consideration of $5,115,000 plus the amount of the closing DIP loan and the assumed liabilities.
The Transaction was completed pursuant to an amended and restated purchase agreement among the purchaser, Flowr Okanagan and Flowr Canada Holdings ULC dated December 1, 2022, as amended.
The aggregate purchase price for the purchased shares was equal to $5,115,000, consisting of (a) $3,850,000 payable in cash and satisfied in the manner described below; and (b) 7,402,186 common shares in the capital of Avant with a value of $1,265,000 based on the deemed price of $0.1708955 per Avant Share, plus (i) the amount of the closing DIP loan; and (ii) the value of the assumed liabilities, subject to certain adjustments.
The purchase price was satisfied through: (a) a credit bid of all amounts owing to the purchaser under the DIP term sheet, including any accrued and unpaid interest, expenses, fees and other amounts, (b) delivery of the Avant share consideration, (c) an amount in cash equal to the purchase price less the credit bid and the Avant share consideration, and (d) the assumption of certain liabilities, as set out in the purchase agreement.
The company previously announced that the purchaser had executed a term sheet with Flowr and its subsidiaries, Flowr Okanagan, Flowr ULC and Terrace Global Inc. pursuant to which the purchaser advanced a debtor-in-possession loan in connection with the Flowr Group’s filing for protection from the court under the CCAA. On January 31, 2023, the DIP term sheet was amended and the principal amount of the DIP loan was increased by $500,000 to an aggregate of $2,500,000.
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